One of the Maharatna power stocks engaged in the generation and sale of bulk power to state power utilities. The stock has jumped by 1.50 percent after announcing plans to invest Rs 79,738.45 crore in three thermal power projects, which include the Telangana Super Thermal Power Project, Gadarwara and Nabinagar Super Thermal Power Projects, and Nabinagar Super Thermal Power Project.
Stock movement
In Wednesday’s trading session, National Thermal Power Corporation Limited’s (NTPC) share gained by 1.50 percent from the previous close of Rs. 403.15. The stock opened at Rs. 407.40 and is currently trading at Rs. 409.20, with a high of Rs. 410.75 and a low of Rs. 403.15. The market capitalization now stands at approximately Rs. 3,96,787.58 crore
What Happened
On November 5th, 2024, NTPC Limited’s broad meeting approved major investments in three thermal power projects. Telangana Super Thermal Power Project, Phase-II, received a green light for 3×800 MW capacity with a budget of INR 29,344.85 crore.
Additionally, NTPC approved investments for Gadarwara and Nabinagar Super Thermal Power Projects, Stage II. The Gadarwara project has a 2×800 MW capacity and is estimated at INR 20,445.69 crore. Meanwhile, Nabinagar Super Thermal Power Project Stage II has an estimated cost of INR 29,947.91 crore, which adds 3×800 MW.
Capacity Portfolio
NTPC Limited has a substantial capacity portfolio across traditional and renewable energy sources. By September 2024, NTPC’s standalone commercial capacity was 59,168 MW, with a total group capacity of 76,443 MW.
In the first half of FY25, NTPC added 485 MW of renewable energy (RE) capacity. This included 90 MW directly under NTPC and 395 MW through group companies. NTPC’s strategic goals include reaching 60,000 MW of RE capacity by FY32, and it is enhancing coal production with a target of 67 million metric tons by FY29.
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Financials and ratios
NTPC Limited’s revenue has increased from Rs. 1,76,207 crore in FY23 to Rs. 1,78,501 crore in FY24, which has increased by 1.30 percent. The net profit of the company has increased by 24.6 percent, from Rs. 17,121 crore in FY23 to Rs. 21,332 crore in FY24.
In terms of quarterly results, the company revenue has decreased by 0.06 percent, from Rs. 44,983 crore in Q2 FY24 to Rs. 44,696 crore in Q2 FY25. The net profit has increased by 13.84 percent, from Rs. 4,726 crore in Q2 FY24 to Rs. 5,380 crore in Q2 FY25
In terms of ratio, NTPC Limited’s ROE and ROCE are 13.6 percent and 10.5 percent, respectively. The debt-to-equity ratio of NTPC Limited is 1.44x, and EPS will be Rs. 22.8.
Shareholding Pattern
NTPC Limited has a majority stake held by the promoters at 51.10 percent, foreign institutional investors at 18.60 percent, domestic institutional investors at 26.51 percent, the government at 0.11 percent, and the public at 3.68 percent as of September 2024.
Company Overview
NTPC Limited operates as India’s leading power generation company, primarily focusing on bulk power sales to state power utilities. The company manages 89 power stations across India through direct operations and joint ventures.
The company has diversified segments, which include power generation into consultancy, energy trading, and coal mining services. The company subsidiaries are NTPC Green Energy and NTPC Mining Limited, strengthening its position in sustainable energy development.
Written By – Nikhil Naik
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