NTPC Limited Q3 FY24 Earnings Conference Call Insights

Key highlights from NTPC Limited (NTPC) Q3 FY24 Earnings Concall

• Operational Highlights
  • Commercial capacity stands at 57,838 MW on standalone basis and 73,874 MW for the Group.
  • Group generated 315 BU in 9M FY24 vs 295 BU in 9M FY23, up 7%.
  • Standalone gross generation 268 BU in 9M FY24 vs 255 BU in 9M FY23, up 5%.
  • Coal stations PLF 76.4% in 9M FY24 vs national average of 68.51%.
  • 4 NTPC coal stations among top 10 in PLF performance.
• Financial Performance
  • Total income INR121,486 crores in 9M FY24 vs INR124,685 crores in 9M FY23.
  • PAT INR12,523 crores in 9M FY24 vs INR11,524 crores in 9M FY23, up 8.66%.
  • Group PAT INR14,842 crores in 9M FY24 vs INR12,250 crores in 9M FY23, up 21.16%.
  • Subsidiaries profit up 17.45% to INR1,516 crores in Q3 FY24 vs INR1,290 crores.
  • Share of JV profit up to INR1,424 crores in 9M FY24 vs INR481 crores in 9M FY23.
• Capex and Capacity Addition
  • Group capex budget INR28,373 crores for FY24.
  • Group capex INR21,552 crores in 9M FY24 vs INR26,058 crores in 9M FY23.
  • 7,808 MW renewable projects under construction.
  • 8,225 MW renewable projects under tendering.
  • Considering awarding 16.8 GW thermal capacity.
  • Will support states in adding 7 GW capacity.
  • In line with government plans to add 88 GW coal capacity over next 10 years.
  • Key projects: Singrauli III, Sipat III, Darlipali, Meja, NPGCL II, Telangana II.
• Coal Production and Mining
  • Highest ever coal production of 25.36 MMT in 9M FY24, up 74%.
  • Coal production target of 34 MT for FY24 intact.
  • Incurred INR10,612.52 crores for coal mine development.
  • Awarded MDO contract for Badam coal mining project.
  • Targeting 50 MMT annual coal production in next 3 years.
• Under-recovery/Incentive Trends
  • Under-recovery INR256 crores in Q3 FY24, INR740 crores in 9M FY24.
  • Expect most under-recovery to reverse in Q4 FY24 as units come back online.
  • Targeting to reduce under recovery to INR400-450 crores in FY24.
  • Incentives INR124 crores in Q3 FY24 and INR462 crores in 9M FY24.
  • Incentives showing increasing trend over last 3 years from INR164 crores to INR354 crores to INR424 crores.
• Tariff Regulations Impact
  • Removal of high/low demand seasons in new regulations positive.
  • Gives better flexibility to manage grid conditions and reduce under-recovery.
• Renewable Capacity Addition
  • 3 GW renewable capacity commissioned currently.
  • 8 GW under construction with PPAs and contracts awarded.
  • Targeting 1 GW commissioning by Mar’25 out of projects under construction.
  • Around 3 GW additions targeted in FY26.
  • Maintaining renewable capacity target of around 15 GW by FY26.
  • Not satisfied with current pace of renewable capacity addition.
  • Module supply issues impacted pace earlier but being resolved.
• Renewable Energy IRR
  • IRR expected to improve with module price corrections.
  • Targeting healthy IRR comparable to cost-plus thermal projects.
• Commissioning Status
  • Telangana Unit 1 to be commissioned in FY24.
  • North Karanpura Unit 2 to be commissioned in FY24.
  • Achieving overall FY24 target of 3.58 GW commissioning.
• Pumped Storage Plans
  • Identified pumped storage potential of 8 GW, down from 14 GW earlier.
  • Includes 3 GW in Tamil Nadu, 2 GW in Maharashtra, 1.2 GW in Chhattisgarh and 1 GW each in Gujarat and Meghalaya.
  • MOU signed for 800 MW in Maharashtra, now increased to 2 GW.
  • Timeline: 2 years for DPR, 5-6 years for construction.
• Coal Capacity Addition Outlook
  • 27 GW of coal capacity under construction.
  • Another 31 GW in advanced planning stage.
  • 18 GW more needs to be planned.
  • To reach 283 GW total coal capacity by 2032.
  • 343 GW renewable capacity addition targeted by 2032.
• Total Capacity Outlook
  • Current total capacity around 426 GW.
  • Targeting 838 GW total capacity by 2032.
  • 412 GW targeted capacity addition by 2032, which Includes coal, renewable, hydro etc.