Top Indian Companies: NTPC Limited

NTPC Limited, formerly known as National Thermal Power Corporation Limited, is a public sector company engaged in generation of electricity and allied activities.

Headquartered in New Delhi, NTPC is the largest power company in India with an electric power generating capacity of 67,907 MW.

Although the company has approx. 16% of the total national capacity, it contributes to over 25% of total power generation due to its focus on operating its power plants at higher efficiency levels (approx. 80.2% against the national PLF rate of 64.5%).NTPC currently produces 25 billion units of electricity per month.

NTPC currently operates 55 power stations (24 Coal, 7 combined cycle gas/liquid fuel, 2 Hydro, 1 Wind, and 11 solar projects). Further, it has 9 coal and 1 gas station, owned by joint ventures or subsidiaries.

Thermal Power

Hydro Power

The company has also stepped up its hydroelectric power (hydel) project implementation.

Renewable Energy

NTPC has drafted its business plan of capacity addition of about 1,000 MW through renewable resources by 2017. In this endeavor, NTPC has already commissioned 870 MW Solar PV Projects.

Small Hydro

Singrauli CW Discharge (Small Hydro) 8 (4x2) MW is on the discharge canal of Singrauli Super Thermal Power Station in Uttar Pradesh. All units of this project are under commercial operation.

• NTPC-THDC has installed 24(8x3) MW Small Hydro Project at Dhukwan on Betwa river in Jhansi district of Uttar Pradesh.

Share holding Pattern

The Shareholding Pattern page of NTPC Ltd. presents the Promoter's holding, FII's holding, DII's Holding, and Share holding by general public etc.

Holder's Name No of Shares % Share Holding

No of Shares 9696666134 100%

Promoters 4955346251 51.1%

ForeignInstitutions 1409607424 14.54%

Banks/Mutual Funds 1721390572 17.75%

Central Govt 16384721 0.17%

Others 111853545 1.15%

General Public 206124874 2.13%

Financial Institutions 1275958747 13.16%

FY2023 Q4 and Full Year Results

NTPC on Friday reported over a six per cent decline in its consolidated net profit to Rs 4,871.55 crore in the March quarter.

NTPC had reported a consolidated net profit of Rs 5,199.55 crore in the quarter ended March 2022, a BSE filing showed.

Its total income in the quarter increased to Rs 4,4745.74 crore from Rs 37,724.42 crore a year ago.

The consolidated net profit in the fiscal 2022-23 also rose to Rs 17,121.35 crore from Rs 16,960.29 crore in the preceding financial year.

The company's total income company increased to Rs 1,77,977.17 crore in 2022-23 from Rs 1,34,994.31 crore in 2021-22.

The board has recommended a final dividend of Rs three per equity share for 2022-23. The final dividend is in addition to the interim dividend of Rs 4.25 per share for 2022-23 paid in February 2023.

The average power tariff of the company during fiscal 2022-23 stood at Rs 4.89 per unit compared to Rs 4.01 per unit in the previous financial year.

The plant load factor (PLF or capacity utilisation) of coal-based thermal power plants climbed to 80.32 per cent in the fourth quarter from 76.17 per cent.

The PLF of coal-based thermal plants also increased to 75.90 per cent in fiscal 2022-23 from 70.94 per cent in 2021-22.

The imported coal supply rose to 2.97 MMT in the March quarter from 1.07 MMT in the same period a year ago. Imported coal supply also jumped to 14.56 MMT in fiscal 2022-23 from 2.47 in 2021-22.

The domestic coal supply also increased to 54.85 MMT from 53.37 MMT. During the fiscal under review, the domestic coal supply increased to 209.29 MMT from 200.08 MMT in 2021-22.

The coal production from captive mines stood at 6.48 MMT in the quarter against 4.36 MMT in the year-ago period. During the fiscal 2022-23, it also rose to 20.23 MMT from 13.61 in 2021-22.

The total installed capacity of the NTPC Group (including JVs and subsidiaries) stood at 72,254 MW as of March 31, 2023.

Its gross power generation climbed to 89.66 billion units (BU) in the fourth quarter from 83.34 BU in the same period a year ago.

Gross power generation (standalone) also increased to 344.27 BU in fiscal 2022-23 from 310.29 BU in 2021-22.

The NTPC Group recorded the highest-ever annual generation of 399 billion units in FY23 compared to 361 billion units in FY22, an increase of 11 per cent

Brokerage Outlook

NTPC has been a significant underperformer in the power space led by a shift of value towards the renewable space. Brokerage, ICICI Direct Research shall await and keenly observe the execution pace of NTPC in the renewable segment.

• ICICI Direct Research maintain their HOLD rating on the stock

Brokerage value NTPC at | 137 i.e. 1x FY23E book value.

Key triggers for future price performance:

• NTPC has set aggressive renewables long term capacity addition target of 60000 MW by 2032, which was earlier pegged at 30000 MW. Also, in the medium term, the company expects to have a cumulative capacity to the tune of 6500 MW by FY24E.

• Dominating market share, strong traction in new products and strong opportunity landscape

• BUY with a target price of | 305 per share.

ESG

The corporation has a proactive approach for preserving the natural environment and resources like water, oil, gas and fuels in places where it is setting up power plants. This is achieved through the following methods :

(a) Optimum utilisation of equipment adopting latest techniques and upgrading existing equipment.

(b) Minimising waste generation by maximising ash utilisation.

(c) Providing green belts for nurturing ecological balances and encouraging afforestation.

(d) Reducing environmental pollution through ash pond management, ash water recycling system and liquid waste management.

(e) Ecological monitoring reviews and online database management for all its power stations.