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 plans to spend $62 billion on 30 GW of nuclear power, sources reveal.
Stock Price Movement:
With a market capitalization of Rs. 2,93,615.05 crore, the shares of NTPC Limited were currently trading at Rs. 302.80 per equity share, rising nearly around 0.10 percent from its previous day’s close price of Rs. 302.50.
What Happened:
As per reports, NTPC Limited plans to build 30 gigawatts (GW) of nuclear power capacity over the next two decades, tripling its original goal of 10 GW. The project is expected to cost $62 billion. This expanded target follows the Indian government’s recent decision to allow foreign and private investment in the nuclear sector.
India aims to achieve 500 GW of non-fossil fuel electricity capacity by 2030 and 100 GW of nuclear power by 2047. NTPC is already constructing two 2.6 GW nuclear plants, one in Madhya Pradesh and one in Rajasthan.
CAPEX and expansion plans:
The NTPC group has increased its CAPEX for 9M FY25 to Rs. 31,133 crores, up from Rs. 21,642 crores YoY, with standalone CAPEX reaching Rs. 16,305 crores, up from Rs. 11,963 crores.
The company has approved an investment of Rs. 1 lakh crore for 8 GW of thermal capacity. Currently, 30 GW of capacity is under construction, including 17.56 GW thermal, 2.2 GW hydro, and 10.3 GW renewable energy. Additionally, the company plans to boost coal production capacity from 40 MMT in FY25 to 67 MMT by FY29.
Management Guidance:
The company plans significant renewable capacity additions, expecting 3,088 MW in FY25, 5 GW in FY26, and 8 GW in FY27. It will focus on expanding thermal capacity through brownfield projects and enhancing its existing facilities to meet growing energy demand in the coming years.
Business Highlights of 9M FY25:
In 9M FY25, NTPC added 640 MW of commercial renewable energy (RE) capacity, bringing the total commercial capacity to 59,168 MW (standalone) and 76,598 MW (group) as of December 31, 2024. Additionally, 135 MW of RE and 660 MW of coal capacity from THDC India Limited will soon be declared commercial.
Additionally, NTPC supplied 185.15 MMT of coal, including 2.26 MMT imported, with the highest-ever coal production of 30.88 MMT, up 23% YoY.
Recent quarter results:
NTPC Limited’s revenue has increased from Rs. 42,820 crore in Q3 FY24 to Rs. 45,053 crore in Q3 FY25, which has grown by 5.21 percent. The net profit has dropped by 0.75 percent from Rs. 5,209 crore in Q3 FY24 to Rs. 5,170 crore in Q3 FY25.
Written By – Nikhil Naik
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