Miniratna PSU primarily involved in the generation of power through hydropower stations, sale of bulk power to various power utilities, and providing many more related services jumped 4 percent in the day’s trade upon signing PPA for a 200 MW Solar Power Project.
Price action
With a market capitalization of Rs. 1,01,555 Crores, the shares of NHPC Limited were trading at Rs. 101.10 per equity share, up 2.64 percent from its previous day’s close price of Rs. 98.60.
What happened
NHPC Limited has signed a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) for a 200 MW solar power project within Gujarat State Electricity Corporation Limited’s RE Park at Khavda.
The estimated financial implication for the Project would be ~Rs.846.66 Crores and the scheduled completion period for the Project is 15 months from the date of execution of the Power Purchase Agreement (PPA).
About the company
NHPC Limited is a Miniratna central public sector enterprise, it is primarily involved in the generation of power through hydropower stations and the sale of bulk power to various power utilities. Its other business includes providing project management, construction contracts, consultancy assignment services, and many more.
NHPC Limited has a presence across 13 states & 2 UTs, it is involved across the entire chain of hydropower project development from concept to commissioning and has a 15 percent share of installed hydroelectric capacity in India.
NHPC Limited has an installed capacity of 7144 MW of which Hydro is 6971 MW and Renewable energy 173 MW through 26 power stations.
Financials and Ratios
Its Revenue from Operations declined by 6.93 percent from Rs. 2,028.77 Crores in Q4FY23 to Rs. 1,888.14 Crores in Q4FY24, accompanied by profits of Rs. 719.18 Crores to Rs. 610.93 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 9.59 percent and a return on capital employed (ROCE) of 7.37 percent. It has reported a debt-to-equity ratio of 0.84.
Written by: Bharath K.S
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