NTPC is an A /T+1 group Power Generation industry company with having Face value of Rs. 10. NTPC Ltd. is India's largest integrated power utility, contributing 1/4th of the power requirement of the country with a diverse portfolio of thermal, hydro, solar, and wind power plants. Out of total capacity, 83% comes from coal plants, followed by gas/ liquid fuel plants 10%, hydro 5% & renewables 2%. It owns 17% of total installed capacity in India with 22% share in electricity generation in India. Company has reported a substantial growth of 99% in coal production from its captive mines during the first quarter of the fiscal year 2024, as compared to the corresponding period in the previous year. It also achieved an impressive coal production of 8.48 million metric tonnes (MMT) during Q1 FY24, as compared to 4.27 MMT in Q1 FY23. In addition, NTPC has also achieved a coal dispatch of 8.82 MMT in Q1 FY24, marking a significant 112% increase over the previous year for the same period. NTPC Group has 3.3 GW RE operational capacity with another 12 GW under tendering including 4 GW Energy Storage System and a major hydrogen-based energy storage cum microgrid system. The company maintains robust profitability due to long-term PPAs backed by a cost-plus tariff structure for sale of power to DISCOM.

Fundamentals (FY22-23):

Financial Results:

Company’s Net Sales was Rs 43,075.09 crore in June 2023 down 0.24%, Quarterly Net Profit at Rs. 4,873.24 crore in June 2023 up 23.79% and EBITDA stands at Rs. 13,170.06 crore in June 2023 up 17.8% as compared to March 2022. Company’s EPS has increased to Rs. 5.03 in June 2023 from Rs. 4.06 in June 2022.

Key Points:

1. NTPC Renewable Energy Limited (NTPC REL) received the Letter of Award for 550 MW Solar Project at a tariff of ₹2.56/kWh with an capital investment of ₹2800 Cr. The power will be utilized under the GoI’s Aug’2022 scheme for flexibility in Generation and scheduling of Thermal Power stations through bundling with RE capacity.
2. Recently the company’s group installed capacity touched 73024 MW post commissioning of Unit-2 of 660 MW capacity of Stage-I (3 x 660 MW) of Barh Super Thermal Power Project in Bihar. Now, the installed capacity of NTPC Limited and NTPC Group has become 57038 MW and 73024 MW respectively.
3. Recently, NTPC and Chempolis India, a Fortum group associate Co & a leading Finnish biorefining technology provider, have signed a non-binding Memorandum of Understanding to explore the feasibility of setting up a Bamboo Based Bio-Refinery in Bongaigaon for the production of 2G Ethanol, Bio-Coal for thermal power plant & other value-added products using Bamboo.
4. NTPC REL, a wholly owned subsidiary of NTPC Limited, received Letter of Acceptance for 500 MW RE-RTC power from REMCL, a JV company of Ministry of Railways and RITES Ltd. The group already has an operational capacity of 3.2 GW and with this project, the total capacity under the pipeline has exceeded 20 GW.
5. The company recently completed its first overseas capacity by setting up Unit-1of a 660 MW capacity, of the 1320 MW (2x660) Maitree Super Thermal Power Plant (MSTPP) located in Rampal, Mongla, Bagerhat, Bangladesh, executed in collaboration with the Bangladesh-India Friendship Power Company Pvt Ltd. (BIFPCL), a foreign joint venture company of NTPC Ltd.
6. The company signed a Memorandum of Understanding (MoU) signed between with HPCL Mittal Energy Limited (HMEL) on 19th May 2023 at Noida to collaborate in the field of Renewable Energy through sourcing of 250 MW RE-RTC (Round-The-Clock) power to meet the requirement of HMEL and also exploring opportunities in the Green Hydrogen business & its derivatives (Green Ammonia & Green Methanol).
7. Recently, the company has registered the highest-ever power generation of 400 BU in FY23, a growth of 10.80% via-a-vis previous year. NTPC reported a coal production of 23.2 million Metric Tonnes (MMT) with a robust growth of over 65% vis-à-vis the previous corresponding year.
8. NTPC Renewable Energy Ltd, a wholly owned subsidiary of NTPC Green Energy Limited, has signed Term Sheet with Greenko ZeroC Pvt Ltd (A Greenko Group Company) to Supply 1300 MW Round the Clock RE Power for powering Greenko’s upcoming Green Ammonia Plant at Kakinada, India.
9. The company has also showcased a 3D-Model of NTPC flagship project on Flue Gas CO2 to Methanol Synthesis at the event of Carbon Capture Utilization and Storage (CCUS). This plant is intended to reduce the CO2 emission of fossil-based Power plants by capturing it and converting it into useful hydrocarbons, i.e., Methanol.
10. NTPC Ltd recently commissioned India's first green hydrogen blending project in the piped natural gas (PNG) network of NTPC Kawas township, Surat. The project is a joint effort of NTPC and Gujarat Gas Limited (GGL) which will work collaboratively to supply H2-NG (natural gas) to households of Kawas township at Adityanagar, Surat. Green hydrogen in Kawas is made by electrolysis of water using power from an already installed 1 MW floating solar project.
11. NTPC ltd also crossed 1GW annual capacity in renewable energy (RE) segment by adding 1074.59 MW RE capacity in FY23 taking the total NTPC non-fossil capacity to 9.41% with the successful commissioning of entire capacities of 150 MW & 90 MW Devikot Solar PV Projects at Jaisalmer, Rajasthan.
12. NTPC Ltd and GE Gas Power signed today a Memorandum of Understanding (MoU) for feasibility to demonstrate of hydrogen (H2) co-firing blended with natural gas in GE’s 9E gas turbines installed at NTPC’s Kawas combined-cycle gas power plant in Gujarat. Under this significant collaboration the two companies will jointly explore the pathways to reduce CO2 emissions from Kawas gas power plant and further implementation at scale across NTPC’s installed units in India.
13. Company has also entered into an agreement to supply Renewable Energy Power to the armed forces (Military Engineering Services which will lead towards the gradual decarbonization of the armed forces.
14. NTPC and IndianOil also signed an agreement for the formation of a joint venture company for meeting the power requirements of upcoming projects of IndianOil refineries.
15. A Memorandum of Understanding (MoU) signed between NTPC RE Limited (NTPC REL) and Gujarat Alkalies and Chemicals Limited (GACL)  to mutually explore the opportunities for the supply of 100 MW RE-RTC (Round The Clock) power and synthesizing 75 TPD Green Methanol and 35 TPD Green Ammonia for captive use for production of various chemicals by GACL at its Vadodara and Dahej complex in Gujarat.

In last 3 Years the stock gave a return of 155.43% as compared to the rise of Sensex and Nifty in the same period.

The company want to make a big entry in Hydrogen and Energy Storage solutions and for which the company has already initiated work for Hydrogen Hub at Pudimadka in Andhra Pradesh. NTPC commissioned India’s largest floating solar PV project of 100 MW at Ramagundam, Peddapalli District, Telangana spread over 600 acres of reservoir. This would help avoid 4.36 million Ton CO2e during the life of the project. The 100 MW project would save 2000 million liters of water per annum which could be sufficient to meet yearly water requirements of approximately 10,000 households. The company has committed to achieve 60 GW of Renewable Energy Capacity by year 2032 and be a major player in Green hydrogen technology and Energy storage domain. Mutual Fund Holding has also increased by 0.2% in the last quarter to 20.1. Considering the ambitious plans of the company in Renewable energy sector, foray into green hydrogen sector, huge installed capacity backed by good financial performance, the investors can invest in this company for long term period.

 - HET ZAVERI

- info@smartinvestment.in

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