This PSU power stock is engaged in the generation and distribution of electricity, focusing on thermal, hydro, and nuclear power, while also expanding its renewable energy capacity, in focus after investing Rs. 96,000 crore in Chhattisgarh to set up clean energy projects.
Stock Price Movement:
With a market capitalization of Rs. 3,18,487 crores, the share of NTPC Limited has reached an intraday high of Rs. 331.85 per equity share, rising nearly around 0.82 percent from its previous day’s close price of Rs. 329.15. Since then, the stock has retreated and is currently trading at Rs. 328.45 per equity share.
What Happened:
NTPC Limited, along with its subsidiary NTPC Green Energy Ltd (NGEL), has signed agreements worth Rs. 96,000 crore with the Government of Chhattisgarh to boost energy development in the state.
The first agreement involves NTPC Ltd. setting up a 4,200 MW nuclear power plant in Chhattisgarh, with an estimated investment of Rs. 80,000 crore. The second agreement was signed between NTPC and Chhattisgarh State Power Generation Company Limited (CSPGCL) to establish a 1,200 MW Pumped Hydro Storage Project at Sikaser in Gariyaband district, costing around Rs. 5,876 crore.
Additionally, NTPC’s subsidiary NGEL entered into a joint venture with Chhattisgarh State Power Generation Company Limited (CSPGCL) to set up 2 GW of renewable energy projects, valued at Rs. 10,000 crore. These projects will contribute to India’s energy transition goals and support Chhattisgarh’s renewable energy targets.
CAPEX and expansion plans:
NTPC Group’s capital expenditure (CAPEX) for the first nine months of FY25 rose to Rs. 31,133 crore from Rs. 21,642 crore in the previous year. Standalone CAPEX increased to Rs. 16,305 crore from Rs. 11,963 crore.
The company has approved a Rs. 1 lakh crore investment for 8 GW of thermal capacity. Currently, 30 GW of projects are under construction, including 17.56 GW thermal, 2.2 GW hydro, and 10.3 GW renewable energy. NTPC also plans to raise coal production from 40 MMT in FY25 to 67 MMT by FY29.
Management Guidance:
NTPC has outlined plans for substantial renewable energy growth, targeting 3,088 MW capacity addition in FY25, followed by 5 GW in FY26 and 8 GW in FY27. The company also aims to expand its thermal capacity through brownfield projects and upgrade existing facilities to address the rising energy demand in the future.
Business Highlights of 9M FY25:
In the first nine months of FY25, NTPC added 640 MW of commercial renewable energy capacity, raising its total commercial capacity to 59,168 MW standalone and 76,598 MW for the group as of December 31, 2024. Moreover, 135 MW of renewable energy and 660 MW of coal capacity from THDC India Limited are set to become operational soon.
Additionally, NTPC also supplied 185.15 MMT of coal, including 2.26 MMT imported, achieving a record coal production of 30.88 MMT, a 23 percent year-on-year increase.
Recent quarter results:
In the recent quarter, NTPC Limited’s revenue rose from Rs. 42,820 crore in Q3 FY24 to Rs. 45,053 crore in Q3 FY25, marking a 5.21 percent increase. However, the company’s net profit slightly declined by 0.75 percent, falling from Rs. 5,209 crore in Q3 FY24 to Rs. 5,170 crore in Q3 FY25.
Written By – Nikhil Naik
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