NTPC is an Indian government-owned electric utility company, engaged in the business of generation of electricity and allied activities. The company’s core business is the generation and sale of electricity to state-owned power distribution companies and state electricity boards in India. NTPC also undertakes consultancy and turnkey project contracts that involves engineering, project management, construction management, and operation and management of power plants.
Now let’s look at the journey of NTPC in the last financial year.
FY21 Performance of NTPC Stock
In FY21, NTPC gained 40%, while Nifty gained 71%. Hence, we can imply that despite generating a handsome return in FY21, the stock of NTPC underperformed in comparison with the Nifty.
How NTPC Fared in FY21
2021 was a challenging year for most businesses. However, for NTPC it was an outstanding year where it delivered strong and steady performance. The company’s revenues grew from Rs 1,09,464 crore in FY20 to Rs 1,11,531 crore in FY21. Net profits of NTPC also increased from Rs 11,600 crore in FY20 to Rs 14,635 crore in the last financial year.
Key highlights of NTPC’s performance in FY21
- The company recorded its highest ever group generation of 314 BU in FY 21, a growth of 8.2% compared to previous year.
- For the first time in FY21, NTPC realized 100% of the billed amount from the Discoms with the amount of realization exceeding Rs. 1 Lakh Crore.
- The total installed capacity of NTPC Group increased by 5.96% to 65810 MW with 4160 MW of capacity addition in the last financial year.
- NTPC’s Singrauli Unit-1 in Uttar Pradesh, Korba Unit-2 in Chhattisgarh achieved more than 100% Plant Load Factor in FY21.
The road ahead for NTPC
NTPC has increased its longer-term capacity target in Renewable Energy (RE) to 60 GW by 2032 as compared to earlier target of 32 GW. With this ambitious target, the firm has taken steps to increase its footprint in the RE sector. Currently, 3 GW of renewable capacities are under construction and likely to be commssioned over the next two years.
On one side while NTPC gradually scales up on its renewables journey, on the other side its continued capitalization for its thermal projects is expected to drive substantial growth for the company over the next few years.
To invest in businesses that are likely to outperform over the next few years, click here.