Share prices of India’s largest power utility moved up by 1.49 percent and opened at Rs. 315 from its previous close of Rs. 312.65.
The reason behind this increase in the share price was due to the signing of two initial pacts announced on Friday to set up two green hydrogen projects in Gujarat by NTPC Green Energy Ltd (NGEL), a unit of state-owned power producer NTPC.
The NTPC’s arm signed the Memoranda of Understanding (MoU) with Gujarat State Petroleum Corporations (GSPC) and Gujarat Pipavav Port (GPPL) at the Vibrant Gujarat Summit in Gandhinagar, for the development of green hydrogen projects in Gujarat.
With the GSPC, the renewable energy firm has entered into a MoU for the blending of green hydrogen in the gas networks of GSPC and green hydrogen mobility by setting up green hydrogen fuelling stations in Gujarat, whereas, the other pact with GPPL is to develop a green hydrogen ecosystem for the production of Green Ammonia.
Financially, the company has been maintaining a healthy dividend payout of 40 percent, but the company has a low return on equity of 12.4 percent over the last 3 years.
The revenue from operations grew 32.82 percent from Rs. 132,669 crores in FY21-22 to Rs. 176,207 crores in FY22-23, accompanied by an increase in profits from Rs. 16,960 crores in FY21-22 to Rs. 17,121 crores in FY22-23.
As of September 2023, FIIs hold 16.69 percent of the shares whereas DIIs hold 29.02 percent, aggregating to 45.71 percent of institutional holding.
The company has spent 6.33 percent of its operating revenue towards interest expenses and 3.7 percent towards employee costs in the year ending 31st March 2023.
Established in 1975, NTPC is the largest utility with an installed capacity of 73,874 MW in India and aims to be the world’s largest and best power major.
The company owns 17 percent of the total installed capacity in Indai with approximately 22 percent share in electricity generation in India.
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