#NTPC Ltd – A stellar performer… powering India’s growth

 

 

• NTPC is the largest power producer in India in terms of both installed capacity and generation, with aggregate installed capacity of 45,548 MW (including 39352 MW through directly owned units and 6,196 MW through Subsidiaries and Joint Ventures) as on September 10, 2015. In addition, the Company has a capacity of 23,004 MW which is under different phases of completion as on date.

• NTPC’s capacity excluding renewable but including capacity of Subsidiary and Joint Ventures represented market share of 18.77% of India’s total installed capacity and we generated 260.58 billion units of power, representing market share of 24.95% of India’s total power generation in fiscal 2015.

• In the calendar year 2014, NTPC was ranked as the number one independent power producer (“IPP”) and energy trader in the world, on the basis of asset worth, revenues, profits and return on invested capital, according to a survey conducted by Platts.

• NTPC ranked 431st overall on the Forbes Global 2000 list of the year 2015, and 379th among companies worldwide in terms of profit and 616th among companies worldwide in terms of market value.

• Aims to build generation capacity of 128 GW by the year 2032 with a lot more focus on renewable energy. Plans to build a portfolio of 10 GW of Solar PV capacity in next 5 years.

• 1^st Hydro project commissioned – 800 MW added at Koldam, 110 MW Solar PV capacity commissioned, 250 MW under construction, 1260 MW Solar PV capacity under tender

• Well diversified in value chain- into trading business, coal mining, consultancy, equipment manufacturing and distribution either on its own or through joint venture companies.

• All power plants are under Regulated return model in which Return on equity is assured on cost plus basis subject to achievement of certain operating norms. This results in consistent and strong operational cash flow unlike any other generator in India.

• Coal plants are operating at a PLF of over 80% as against national average of 64%

Financial strength:

• Total revenues Rs.75,362 crore and Profit After Tax of Rs.10,291 crore in FY15

• Total Assets of over Rs. 1,97000 crore as on FY14-15 year end.

• Paying dividend consistently for last 22 years with dividend payout ratio of around 40-50%. NTPC is amongst top 5 dividend paying companies in India in financial year 2014-15. The Company rewarded its investor with bonus debentures @ Rs.12.50 against equity share of Face value of Rs. 10 each during 2014-15 out of its reserves.

• Debt equity ratio of 1.05 times for the year 2014-15 and current ratio of 1.22 times

• Compound Annual Growth of 16% in total fixed assets and capital work in progress in last 5 years.

• Unparallel collection efficiency in the industry. Outstanding receivables of 38 days only. Collecting 100% dues from its customers consistently.

• Bottom line has been consistently attractive- 4^th largest net profit in all  PSUs after ONGC, Coal India and SBI in FY 2014-15

• Equity locked in Capital work in progress will be converted into operational assets in next 3-4 years which will give a big push to total profits as well as Return on Assets (RoCE) and equity (RoE).

Key Competitive Strengths

• Leadership Position in the Indian Power Sector

• Long-term Fuel Security –All operating stations covered by long term fuel supply agreements/ coal linkages

• High Operational Efficiency

• Ability to Turn Around Underperforming Power Stations – has turnaround 4 sick power plants

• Low Cost Power Producer in India with average tariff ranging around Rs. 3.26 /kwh

• Prudent Off-take Policy – all power stations have long term power purchase agreements with distribution companies

• Strong Balance Sheet

• Competent and Committed Workforce – has been adjudged as the best company to work for 2015 in the Public Sector category and also rated as the best company to work in Energy, Oil and Gas Industry, in a study carried out by Great Place to Work and Economic Times.