For 2QFY2016, NTPCs net sales increased by 6.9% yoy to Rs17,723cr (2.4% below our estimate; and as against Rs16,582cr in the corresponding quarter of last year) led by a 6% yoy increase in coal PLF. Coal PLF improved 407bp to 77.3% as against 73.2% last year. Gas PLF however continued to fall, coming in at 25.7% as against 33.4% last year. PAF remained stable at 88.1%/97.6% for coal and gas respectively. Higher than expected operating expenses resulted in the EBITDA coming in 5.5% below our estimate, at Rs4,031cr. The EBITDA however increased 24% yoy resulting in a 315bp improvement in margin. While depreciation and interest expenses were in line with expectations, higher tax refunds boosted net profit, which came in 9.6% ahead of our expectation at Rs2,898cr. Strong capacity addition to drive regulated equity: NTPCs current capacity stands at 45,048MW and the company plans to add ~23,500MW by FY2019. The company will commission 7,500MW by FY2017, ~8,050MW in FY2018 and ~8,200MW in FY2019. Led by the strong capex, the Management expects to see a 45% jump in regulated equity by FY2018 and a 75% increase by FY2019. Outlook and valuation: We like NTPC for the growth offered by its regulated...