Categories Concall Highlights, Earnings, Energy

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.

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