Strong Q3 Fy22 Results From NTPC Set The Stage For Renewable Push

The Country’s largest power generator- NTPC Ltd., with a present group installed capacity of 67,757.42 MW, declared the unaudited financial results for Q3/9M FY22 on 29 January 2022.

NTPC group has recorded gross generation of 87.92 Billion Units in Q3 FY22 and 264.70 Billion Units in 9M FY22 as against 76.53 Billion Units and 222.41 Billion Units during the previous corresponding periods of last year registering an increase of 14.88% and 19.01% respectively. On standalone basis, the gross generation of NTPC for Q3 FY22 was 72.70 Billion Units and in 9M FY22 was 219.26 Billion Units as compared to 65.42 Billion Units and 193.28 Billion Units in the corresponding previous periods registering an increase of 11.13% and 13.44% respectively. Coal stations achieved a Plant Load Factor of 68.95% as against National Average of 57.02% during the 9M FY22.

On standalone basis, Total Income was ₹ 29,837.13 crore in Q3 FY22 and ₹ 85,912.38 crore in 9M FY22 as against ₹ 25,268.56 crore and ₹ 75,312.89 crore during the previous corresponding periods of last year. PAT was ₹ 4,131.99 crore in Q3 FY22 and ₹ 10,489.53 crore in 9M FY22 as against ₹ 3,315.34 crore and ₹ 9,290.30 crore during the previous corresponding periods of last year, registering an increase of 24.63% and 12.91% respectively.

On consolidated basis, Total Income was ₹ 33,783.62 crore in Q3 FY22 and ₹ 97,269.89 crore in 9M FY22 as against ₹ 28,387.27 crore and ₹ 83,859.59 crore during the previous corresponding periods of last year. PAT was ₹ 4,626.11 crore in Q3 FY22 and ₹ 11,760.78 crore in 9M FY22 as against ₹ 3,876.36 crore and ₹ 10,319.91 crore during the previous corresponding periods of last year, registering an increase of 19.34% and 13.96% respectively.

NTPC says average tariff for nine months ended at December 2021 stood at ₹ 3.91 per unit, up by 1.03 percent compared to ₹ 3.87 per unit reported in the corresponding period of last fiscal. The Board of Directors has approved an interim dividend for FY22 @ 40% of paid-up share capital i.e. ₹ 4/- per equity share of face value of ₹10/- each

Declaring the results, the NTPC management stressed that the plan to hive off the renewable assets of the group as a separate entity via an IPO, or a strategic investor remain on course for October this year. It’s renewables portfolio is expected to grow fast now, with 40-45 percent of its capital expenditure in financial year (FY) 2022, and FY23 planned on renewables. NTPC says that this figure will progressively move up in the years post that. NTPC has a capital expenditure target of ₹ 23,736 crore for FY22, of which 90% has already been invested . The capex for FY23 is pegged at  ₹ 22,454 crore and it has firmed up plans for ₹ 18,921 of capex in FY24 so far

The strong results were somewhat expected thanks to the advantages NTPC had in terms of its captive coal mines as well as preferential coal supplies, when the coal shortage was peaking during September-October 2021. The firm continues to ‘clean up’ its portfolio with more renewable assets as well as older thermal plants being retired.