21 November 2018 NHPCs many recently commissioned projects are still not contributing to PAT. Kishanganga 330MW is breaking even at PAT, pending final approval of tariff order. Parbati-3 has been commercialized, and 2 units of 200MW of Prabati-2 have been commissioned but full revenue recognition will be post completion NHPCs standalone (S/A) PAT increased 20% YoY to INR12.2b in 2QFY19, led by generation growth of 11% (aided by commercialization of the 50MW solar unit in Mar18), the resumption of TLDP-3&4 and the absence of revenue reversal for Parbati-3, partly offset by lower other income and regulatory revenue. NHPC has stopped recognizing regulatory revenue against the Lower Subhanshari project, which has been stalled since Dec11. This will drag PBT by INR1.1b every quarter until the project is restarted. Renewable energy projects have contributed PBT of INR217m in 1HFY19. We lower FY19/20E PAT by 7/12% to ~INR23.4b/27.4b, primary due to the loss of regulatory revenue from the Lower Subhanshari project. We expect under-recoveries to reduce in FY20 on approval of pending final tariff for five projects and pass-through of wage hike in new regulation 2019-24.