Maharatna stock jumps after company’s net profit increased by 33% YoY

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Maharatna stock jumps after company’s net profit increased by 33% YoY
Credit: © Reuters.

Shares of India’s largest thermal power utility firm gained 1.8 percent to a 52-week high price of ₹ 381.25 per share on Monday after the company reported a net profit growth of 33% year on year.

At 12:47 p.m., NTPC (NS: NTPC ) Ltd. shares were trading at ₹371.75 per share, down 0.83 percent from the previous close price on the National Stock Exchange. The stock belongs to the large-cap category, with a market capitalization of ₹3,60,473 crores.

NTPC reported robust financial performance for Q4 FY24, with a consolidated net profit of ₹6,490 crores, reflecting a notable 33% increase from the corresponding quarter of the previous year. The total revenue for the same quarter reached ₹47,622 crores, marking a 7.7% rise compared to the previous year quarter.

For the fiscal year 2023-24, the company’s consolidated net profit stood at ₹21,332 crores, showing a substantial 25% increase from the preceding fiscal year. Similarly, the total revenue for the fiscal year witnessed a 1.3% growth, totaling ₹1,78,501 crores.

NTPC is India’s largest integrated power utility, contributing 25 percent of the country’s power requirement.It has a presence in the entire value chain of the power generation business. The company produces electricity and sells it to state power utilities on a wholesale basis.

The company’s board of directors recommended final dividend of ₹ 3.25 per equity share for the financial year 2023-24, subject to the approval of the shareholders in the annual general meeting.

The board of directors, in their meeting held on May 24, accorded the in-principle approval for incorporation of a wholly owned subsidiary company for undertaking nuclear energy business, subject to approval of its administrative Ministry i.e. Ministry of Power, DIPAM, Niti Aayog and/or other statutory authorities as may be required.

During the quarter, the company recorded gross power generation of 93.387 billion units (BU), 4.15 percent higher than 89.668 BUs in the same period of the previous year.

NTPC generates electricity using coal, gas, liquid fuel, hydro, and other renewable sources. It also provides consultancy, e-mobility solutions, project management, and supervision; holds interests in coal mining blocks; and carries out energy trading, oil, and gas exploration, training of power professionals, rural electrification, ash utilisation, and coal mining. NTPC is headquartered in New Delhi, India.

NTPC shares have gained 43 percent in the last six months, delivering a multibagger return of 109 percent over the past 12 months.

In Q4 FY24, the total installed capacity of the NTPC group stood at 75,958 MW, compared to 72,254 MW in the same quarter of the previous fiscal year. On a standalone basis, NTPC reported a total installed capacity of 59,078 MW, up from 56,368 MW in Q4 FY23.

The company announced in its press release that the NTPC group recorded its highest-ever annual generation of 422 BU in FY24, up from 399 BU in FY23, an increase of approximately 6 percent. NTPC’s standalone gross generation in FY24 was 362 BU, compared to 344 BU in the previous year, registering an increase of about 5 percent.

In the call with analysts following the Q4 FY24 results, NTPC revealed its plans to target new thermal orders worth 15.2 GW in the coming years and has also increased the ordering pipeline for its thermal capacity. NTPC now intends to award orders for 10.4 GW of thermal power projects in FY25, significantly higher than previously projected.

Regarding commissioning, NTPC expects to commission thermal power projects worth 2.8 GW in FY25 and 1.5 GW in FY26.

Written by Omkar Chitnis

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