Power producers’ earnings to see uptick
With 9.6 per cent growth in electricity generation across the country, power companies are likely to report an increase in earnings during the first quarter of FY17 on year-on-year basis.
NTPC, the country’s largest power generator, has seen nine per cent growth in generation. It generated 64.5 billion units during the first quarter ending June 2016, according to an HDFC Securities report. Analysts, therefore, expect it to be the star performer in the power universe.
The HDFC report said the increase in generation was led by coal-based generation, which grew 13 per cent in the first quarter this year over the previous. Generation by the central sector was up seven per cent, state was up 4.1 per cent, while the private sector continued to lead with a 17.5 per cent increase in the first quarter. The gradual pick-up in demand, especially with temperature increase owing to the onset of the summer during May, led to the growth in power generation.