NTPC Q4, Fy 21-22 Results-Strong Show, But Slow Going On Renewable Capacity Plans

The Country’s largest power generator- NTPC Ltd., with a present group installed capacity of 68,982 MW, declared the financial results for FY22 on 20 May 2022.

NTPC Group generated 361 Billion Units and recorded highest ever annual generation in FY22 as compared to 314 Billion Units in FY21, an increase of ~15%. NTPC’s standalone gross generation in FY22 is 299 Billion Units as compared to 271 Billion Units in the corresponding previous year, registering an increase of ~10%.

NTPC Coal stations achieved a Plant Load Factor of 70.74% as against the National Average of 58.76.% during the FY22.

On standalone basis, Total Income of NTPC for FY22 was ₹120,042.43 crore as against corresponding previous year Total Income of ₹ 103,552.71 crore, registering an increase of 15.92%. PAT for FY22 was ₹ 16,111.42 crore as against ₹ 13,769.52 crore in FY21, registering an increase of 17.01%.

On consolidated basis, Total Income of the group for FY22 was ₹ 134,994.31 crore as against corresponding previous year Total Income of ₹ 115,546.83 crore, registering an increase of 16.83%. PAT of the group for FY22 was ₹ 16,960.29 crore as against corresponding previous year PAT of ₹ 14,969.40 crore, registering an increase of 13.30%.

The Board of Directors of NTPC Ltd. have recommended a final dividend @ 30% of paid-up share capital, ie, Rs 3 per share.

On the renewables front, the company clearly seems to be taking its eyes off renewables for now, thanks to the immediate exigencies of strong power demand and a focus on thermal generation to fill the gap.

Thus, of a total planned capacity addition of 5 GW in 2022-23, and 6 GW in 2023-24, the company plans to limit the share of renewables to just 1.5 GW in 2022-23, and even lower, 950 MW in 2023-24.

The firm blamed delays caused due to the Supreme Court ruling on the Great Indian Bustard area in Rajasthan and Gujarat, which mandated laying underground transmission lines, and high module prices during the year, for delays on its renewable progress.

Thus, in all likelihood, after Chinese power firms, NTPC will probably be adding the highest coal based power generation worldwide in the next two years. The management is unfazed by the prospect, expressing confidence that they would be able to fund these expansions by way of domestic debt and bond issuances. The visibility of high profits for the foreseeable future will also help. NTPC, which has the advantage of it’s own coal mines to an extent, also mined 13.61 million tonnes from its captive mines, a 43% jump over the corresponding figure for FY20-21  of 9.46 million tonnes.

Average tariffs for the financial year also look set to cross Rs 4 comfortably this year on the back of higher coal proces, as FY22 figures came in at Rs 3.98, versus Rs 3.77 in Fy 21, a 5.7% increase.