PSU power stock surged 2.5% following a favorable order from the Delhi High Court, which upheld an arbitration award of Rs. 1,819 crore. The positive ruling has boosted investor sentiment, reinforcing confidence in the company’s financial position and future growth prospects.
Share Price
The shares of NTPC Limited are currently trading at Rs. 318 up by 2.3% from its previous close of Rs. 311.25 as of February 04, 2025. The stock recovered sharply after touching an intraday low of Rs. 310.3 to an intraday high of Rs. 319.95.
Recent Update
Background of the Dispute
NTPC Limited was involved in a contractual dispute with Jindal ITF Limited (JITF) regarding an infrastructure project for the transportation of coal through waterways for NTPC’s Farakka STPP. An Arbitral Award was pronounced on 27th January 2019, wherein claims of approximately Rs. 1,891 crore, plus interest, were allowed against NTPC. NTPC challenged this award before the Hon’ble High Court of Delhi under Section 34 of The Arbitration & Conciliation Act, 1996.
Delhi High Court’s Ruling
On 30th January 2025, the Hon’ble High Court of Delhi delivered a significant judgment, which was uploaded on the court’s website on 1st February 2025. The court set aside the Arbitral Award entirely, observing that the award was “perverse” and “patently illegal.” This ruling provides a favorable outcome for NTPC, potentially removing the financial liability imposed by the arbitration.
Q3 Results
Profit Performance
NTPC reported a slight dip in net profit for Q3, which stood at ₹5,169.69 crore, compared to ₹5,208.87 crore in the same period last year. This decline was primarily due to higher tax expenses and certain adjustments. Despite the dip in profit, the company’s overall performance remains relatively stable.
Growth in Income and Generation
The state-owned power major saw a growth in its consolidated total income, which increased to ₹45,597.95 crore in Q3 FY25 from ₹43,574.65 crore in Q3 FY24. This growth reflects robust operational performance.
NTPC’s gross power generation also showed a positive trend, increasing to 91.25 billion units (BU) from 89.46 BU in the corresponding quarter of the previous year. Additionally, the company’s coal output rose significantly to 10.98 million metric tons (MMT) from 8.09 MMT in the year-ago period, signaling improved efficiency and productivity.
About the Company
NTPC Limited, along with its subsidiaries, associates, and joint ventures, is a leading power generation company in India. The company primarily focuses on the generation and sale of bulk power to State power utilities, playing a crucial role in India’s energy sector.
Besides its core business of power generation, NTPC is also involved in various other sectors, including providing consultancy, project management, and supervision services. Additionally, the company participates in energy trading, oil and gas exploration, and coal mining. NTPC’s diverse business portfolio strengthens its position as a key player in India’s energy and infrastructure landscape.
Written By: Dipangshu Kundu
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