NTPC Q1 Results, Revenues up 43% YoY, Profits up 15%

NTPC Limited, India’s largest power generator and the engine of it’s future renewable growth plans, has reported results for the Q1 of FY 23. The consolidated results have come out with a strong topline growth in revenues, even as profit growth was somewhat muted, due to the impact of higher input costs, especially coal.  At Rs 43,560 crores for the quarter, the PSU hit an all time high on turnover, a 43% jump over the same quarter last year. Profits jumped over 15% to Rs 3,977 crores, over the Rs 3,443 crores it recorded last year in the same quarter.

During the quarter ended 30 June 2022, 20 MW solar PV capacity at Kawas w.e.f. 14 May 2022, 35 MW Kayamkulam floating solar PV plant w.e.f. 19 May 2022, 15 MW solar PV plant at Kawas w.e.f. 15 June 2022, 47.52 MW solar PV plant at Fatehgarh w.e.f. 19 June 22 and 35 MW Kayamkulam floating solar PV plant w.e.f. 24 June 2022 have been declared commercial. The very fact that all the new capacities added have come from renewable energy indicate the direction the corporation is trying to set for itself, even as it does some upcoming thermal plants to be completed too, besides some brownfield expansions.

During the quarter, it has incorporated a wholly owned subsidiary, in the name of ‘NTPC Green Energy Limited’ (NGEL) on 7 April 2022, for reorganisation of its renewable energy business. The Board of Directors of the Company has approved the transfer of 15 renewable energy assets (“RE Assets”) of the Company to NGEL at book value, through a business transfer agreement dated 8 July 2022. Further, the Company will also transfer its 100% equity shareholding held in NTPC Renewable Energy Limited (“NREL”), a wholly owned subsidiary of NTPC, to NGEL through a share purchase agreement dated 8 July, 2022. The eventual plan was to go for an IPO for its renewable subsidiary, or at least bring in a strategic investor while retaining majority control.

NTPC is leading the renewables push for India, with its own 60 GW capacity target for 2032, besides the many JV’s and other partnerships it has been entering into to support the move by other energy PSU’s to add renewable capacity too. In some ways, the firm is set to play a direct and indirect role in almost 75 GW of renewable capacity between now and 2032.

Watch this space for a detailed report on the analyst call that the senior management will host soon.