Shares of this large-cap company fell around 3 percent in Thursday’s trading session despite signing an MoU with Mahatma Phule Renewable Energy and Infrastructure Technology Limited. The shares have delivered more than 90 percent to its shareholders in one year.
With a market capitalization of Rs. 3,38,365 crores, the shares of NTPC Ltd started Thursday’s trading session on a flatter note at Rs. 356.50 compared to its previous close of Rs. 355.45. During the trading session, the shares hit a low of Rs. 346.30, losing around 3 percent and are currently trading at Rs. 347 apiece.
According to the exchange filing, on May 8, 2024, NTPC Green Energy Limited ( a subsidiary of NTPC) and Mahatma Phule Renewable Energy and Infrastructure Technology Limited (MAHAPREIT), signed a Memorandum of Understanding. The MoU envisages the joint development of grid-connected Renewable Energy Parks and Projects including Solar, Wind, Hybrid etc. and solutions thereof up to 10 GW in the state of Maharashtra.
Mahatma Phule Renewable Energy and Infrastructure Technology Limited is a wholly owned subsidiary company of Mahatma Phule Backward Class Development Corporation (MPBCDC), a State Public Sector Undertaking under the Government of Maharashtra which has been set up to establish and carry on the business of generating, trading, operating, leasing and renting Renewable Power.
Coming onto the company’s financial statements, the revenue decreased by 5 percent from Rs. 44,983 crores during the September quarter to Rs. 42,820 crores in the December quarter. On a contrasting note, the net profits increased by 10 percent from Rs. 4,726 crores to Rs. 5,209 crores during the same timeframe.
In FY24, NTPC added 3,924 MW of new capacity, bringing its total installed capacity to nearly 76 GW. Further, plans to add 5 GW of new power generation capacity in FY25, including 3 GW of renewable energy capacity and 2 GW of thermal energy capacity.
Moreover, the State-run power giant plans to launch an initial public offering (IPO) for its wholly-owned subsidiary, NTPC Green Energy, in FY25 and aim to expand its non-fossil-based capacity to 45 to 50 percent of its total portfolio by 2032, which will include 60 GW of renewable energy capacity out of a total portfolio of 130 GW.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 12.13 percent and a return on capital employed (RoCE) of 9.69 percent for the period spanning FY22-23. Additionally, the net profit margin was at 9.72 percent in FY 22-23
Headquartered in New Delhi, NTPC was incorporated in 1975. The company along with its subsidiaries or associates and JVs is primarily involved in the generation and sale of bulk power to State power utilities. And the other business of the group includes providing consultancy, project management and supervision, energy trading, oil and gas exploration and coal mining.
Written By Vaibhav Patil
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