Key highlights from NHPC Limited (NHPC) Q4 FY24 Earnings Concall
- Load Factor
- Generation in FY24 was 21,773 million units, 12% lower than FY23.
- Plant Availability Factor (PAF) in FY24 was 77.6%, lower by 11% compared to FY23.
- Q4 FY24 generation was 2,304 million units, 20% lower than Q4 FY23.
- Financial Performance
- Revenue from operations in FY24 was Rs. 8,405 crore, 10% lower than FY23 due to lower generation.
- Other income in FY24 was Rs. 1,624 crore, 94% higher than FY23.
- Other income in Q4 FY24 was Rs. 591 crore, 133% higher than Q4 FY23.
- Net profit increased by Rs. 129 crore or 26% to Rs. 698 crore in Q4 FY24 from Rs. 569 crore in the previous year.
- Capex for FY24 was Rs. 8,652 crore against a target of Rs. 10,857 crore.
- Expenses
- Generation expenses decreased from Rs. 936 crore in FY23 to Rs. 814 crore in FY24 due to lower generation and reversal of water cess earlier levied.
- Employee cost remained almost flat, decreasing marginally from Rs. 1,300 crore in FY23 to Rs. 1,297 crore in FY24.
- Finance cost decreased from Rs. 476 crore in FY23 to Rs. 425 crore in FY24 due to changes in interest rates and loan requirements.
- Depreciation and amortization expenses decreased from Rs. 1,145 crore in FY23 to Rs. 1,111 crore in FY24.
- Other expenses increased from Rs. 1,708 crore in FY23 to Rs. 2,316 crore in FY24.
- Receivables Position
- Trade receivables stood at Rs. 3,984 crore as of March 31, 2024, including Rs. 2,264 crore in unbilled revenue.
- Net billed receivables were Rs. 1,721 crore after adjusting for unbilled revenue and discounted bills.
- Net amount due as of March 31, 2024, was only Rs. 818 crore, with more than 45 days dues at Rs. 277 crore.
- Project Updates
- Subansiri Lower project: 3 units expected to be commissioned by March 2025, remaining by May 2026. Estimated cost: Rs. 21,248 crore, incurred: Rs. 20,834 crore.
- Uri-II project: Targeted completion by December 2024. Estimated cost: Rs. 12,164 crore, incurred: Rs. 11,127 crore.
- Dibang Multipurpose project: Major contracts awarded, estimated cost: Rs. 31,876 crore, incurred: Rs. 2,307 crore.
- Updates provided on Teesta VI, Bangalore, HEP, Pakal Dul, and other projects under construction.
- Renewable Energy
- 1,000 MW solar project progressing well, land acquisition ongoing for 700 MW capacity.
- Received letter of intent for 200 MW solar project in Gujarat at Rs. 2.66/unit tariff.
- Exploring pumped storage solar projects with indicative capacity of 20,000 MW across multiple states.
- Project Delays
- Subansiri project delayed due to subsidence in diversion tunnel 1 and hill slope slide on Left bank.
- Major portion of restoration works completed, but hill slope restoration ongoing.
- Diversion tunnel 1 seepage reduced from 8-9 cumecs to less than 1 cumec.
- Remaining diversion tunnel 1 plug work to be done after monsoon season.
- Parbati 2 project delayed due to excavation issues, now completed.
- Capital Expenditure
- FY25 capex target Rs. 11,761 crore, excluding pump storage projects.
- Breakup: Subansiri, Rs. 450 cr; Deban, Rs. 950 cr; new projects, Rs. 950 cr; solar, Rs. 1,623 cr.
- Chenab Valley projects (Pakal Dul, Kiru, Kawar) – Rs. 3,370 cr.
- Other projects: BSUL solar, Rs. 1,550 cr; Sikkim hydro, Rs. 1,198 cr; Rangit-IV, Rs. 464 cr; Ratle, Rs. 954 cr.
- FY26 capex plan around Rs. 13,317 crore.
- Cash Flows
- Strong cash flows to meet 30% equity portion of capex from internal accruals.
- PBDIT around Rs. 3,800 cr, depreciation Rs. 1,600 cr – cash accruals Rs. 5,400 cr.
- After dividends, around Rs. 3,600 cr available annually for equity capex.
- Floating Solar Power
- Signed MoU with Norway’s Ocean Sun to identify water bodies for floating solar projects.
- Currently executing 88 MW floating solar at Omkareshwar reservoir.
- Exploring 300 MW floating solar at Rengali, Odisha – re-tendering after earlier bid attracted only 20 MW.
- Pump Storage Projects
- NHPC plans 20,000 MW pump storage capacity over next 10 years.
- Work to start in 2 years on 5,000-6,000 MW pump storage projects.
- These projects targeted for commissioning by FY2030.
- Subansiri Commissioning
- 3 units to be commissioned together in March 2025 after completing civil/hydro-mechanical works.
- Remaining 5 units to be commissioned one by one by May 2026.
- No possibility of commissioning 1-2 units earlier than March 2025.
- Bursar Storage Project
- DPR prepared in 2008, declared national project by Ministry of Water Resources.
- Viable only if government provides grant for storage component, else tariff very high at Rs. 25-30/unit.
- NHPC to develop if government rethinks and directs, given strategic importance of storage projects.
- Dibang Project Status
- Construction of roads, bridges, railroads by L&T (Package 1) ongoing.
- Power house and tunnel works by Patel-GR Infra JV (Package 2) in progress.
- NHPC getting ready to tender main concrete dam package.
- All land acquisition complete.
- EPC Tender Awards
- NHPC preparing to award EPC tenders for Sawalkot and Dugar projects simultaneously.
- Sawalkot tender subject to approval from J&K government and Ministry of Power.
- Dugar tender contingent on court verdict and Himachal Pradesh granting agreed concessions.
- Both projects likely to be awarded under single EPC package.
- Solar Project Timelines
- 88 MW Omkareshwar floating solar project awarded to Tata Power, commissioning by Oct 2024.
- 300 MW Rengali project under tendering, targeted commissioning in FY 2026-27.