NTPCNSEQ4 FY2323 May 2023

NTPC Limited

5,023words
75turns
8analyst exchanges
2executives
Management on call
Jaikumar Srinivasan
Director (Finance); Mr. Ramesh Babu V. - Director (Operations);
Ujjwal Kanti Bhattacharya
Director (Projects); and Mr. Shivam
Key numbers — 40 extracted
rs,
tacharya - Director (Projects); and Mr. Shivam Srivastava - Director (Fuel). Thank you so much, Sirs, for your kind presence and giving JM Financial the opportunity to host the call. With this, I wo
3952 MW
ance in FY23 are as follows. Operational Highlights of FY23 ➢ During FY23, NTPC group has added 3952 MW of commercial capacity to its portfolio. As on 31 March 2023, the commercial capacity of NTPC sta
56368 MW
rcial capacity to its portfolio. As on 31 March 2023, the commercial capacity of NTPC stands at 56368 MW on standalone basis and 72254 MW for the Group. ➢ NTPC Group generated 399 Billion Units in FY23
72254 MW
. As on 31 March 2023, the commercial capacity of NTPC stands at 56368 MW on standalone basis and 72254 MW for the Group. ➢ NTPC Group generated 399 Billion Units in FY23 as compared to 361 Billion Unit
399 Billion
NTPC stands at 56368 MW on standalone basis and 72254 MW for the Group. ➢ NTPC Group generated 399 Billion Units in FY23 as compared to 361 Billion Units in FY22, an increase of ~11%. The standalone gross
361 Billion
basis and 72254 MW for the Group. ➢ NTPC Group generated 399 Billion Units in FY23 as compared to 361 Billion Units in FY22, an increase of ~11%. The standalone gross generation in FY23 was 344 Billion Uni
11%
oup generated 399 Billion Units in FY23 as compared to 361 Billion Units in FY22, an increase of ~11%. The standalone gross generation in FY23 was 344 Billion Units again an increase of ~11% over pre
344 Billion
to 361 Billion Units in FY22, an increase of ~11%. The standalone gross generation in FY23 was 344 Billion Units again an increase of ~11% over previous year gross generation of 310 Billion Units. ➢ Dur
310 Billion
in FY23 was 344 Billion Units again an increase of ~11% over previous year gross generation of 310 Billion Units. ➢ During FY23, average PLF of NTPC coal stations was 75.90% as against the National Aver
75.90%
ear gross generation of 310 Billion Units. ➢ During FY23, average PLF of NTPC coal stations was 75.90% as against the National Average of 64.21%, thereby maintaining a spread of over 11%. For FY23,
64.21%
➢ During FY23, average PLF of NTPC coal stations was 75.90% as against the National Average of 64.21%, thereby maintaining a spread of over 11%. For FY23, 5 coal stations of NTPC viz. Korba, Vindhyac
96.70 Billion
has been an improvement in scheduling by the beneficiaries thereby reducing the backing down from 96.70 Billion units in FY22 to 91.85 Billion units. Status of Fuel Supply: ➢ During FY23, materialisation o
Guidance — 20 items
Status of Fuel Supply
opening
“Going forward we expect growth to continue and believe the turnaround from CWIP to Gross Block would be quicker because of greater mix of Renewable capacity, having a shorter gestation period.”
Status of Fuel Supply
opening
“This scheme has been implemented as a part of the corporate business plan of the group to provide an impetus to its focus on achieving the 60 GW RE capacity target by FY32.”
Status of Fuel Supply
opening
“The Project will involve establishment of manufacturing facility for Hydrogen related equipment, production & export of Green Hydrogen/Ammonia/Green Chemicals.”
Status of Fuel Supply
opening
“(NPCIL) have signed a Supplementary Joint Venture Agreement to collaborate and cooperate in the field of development of Nuclear Power projects which shall help the country in meeting the Clean Energy Commitments to achieve net zero emission target by 2070.”
Status of Fuel Supply
opening
“Initially, the JV company shall develop two Pressurized Heavy-Water Reactor projects at Chutka, Madhya Pradesh Atomic Power Project (2x700 MW) and Mahi Banswara Rajasthan Atomic Project (4x700 MW), which were identified as a part of fleet mode nuclear projects.”
Mohit Kumar
qa
“And if not, can we expect the monetization strategic sale to happen in this fiscal year?”
Mohit Kumar
qa
“Can we expect slightly better numbers in FY24 and FY25?”
Management
qa
“And going ahead, we will have a capacity addition target of close to 4600 MW in FY24, 3580 MW during FY25 and 2424 MW in FY26.”
Mohit Kumar
qa
“Do we have PPA for all the renewable capacity you see coming or do you expect to tie up some of the capacity?”
Management
qa
“This will be implemented by NGEL and NREL, and this capacity what we are saying is based on the tenders already won and the bilateral tie-ups.”
Q&A — 8 exchanges
Q
My first question is, Sir, how are you thinking about the monetization of renewable portfolio? Have we dropped the idea of strategic stake sale? If yes, what are the reasons and the way forward? And if not, can we expect the monetization strategic sale to happen in this fiscal year?
Management
No, there was a definite plan for monetization of the RE assets, and you may be aware that NTPC also ran a process for minority stake sale in NGEL. However, despite some participation, the stake sale strategy initiative could not materialize due to various reasons. However, going ahead, we have distinct listing plan of either going for IPO route or some kind of strategic sale initiative very soon, and this is very much on cards considering the fast pace of expansion we are expecting on RE, and it would also help to unlock value of our RE business, but the exact timeline depends on our readines
Q
Sir, if you can please share your CAPEX plans for FY24 and FY25 as well, that will be very helpful.
Management
The capital expenditure target for FY23 was Rs.22,454 crore and against that we have achieved close to Rs.24,597 crore, which is 110% of the target. That is on standalone basis. As NTPC Group, our target was Rs. 26,562 crore. Against that we have achieved 35,204, which is 133% of the target. For FY24, our target for NTPC standalone remains same at Rs.22,454 crore, and our group target is Rs.28,373 crore and we are confident that we will be achieving these targets. Going forward for NTPC standalone for FY25 it is Rs.24,701 crore; FY26 it is Rs.31,142 crore and for FY27 it is Rs.34,096 crore. Si
Q
My first question is with regard to if you could tell us what the adjusted PAT number is for fourth quarter and as well as for FY23?
Management
The adjusted PAT for Q4 would be Rs.4,895 crore. This compares favorably if you see the Q4 for FY22, which was Rs.4,570 crore. So, it is a 7% growth over the last year. And for the full year? For the full year, the figure is Rs.16,314 crore compared to last year figure of Rs.14,910 crore. So, an increase of approximately 9%. Secondly, with regard to the renewable projects, you did mention that we are looking at about 16 GW of projects which are targeted to come by FY26. If you could throw a little bit light on the breakup of these projects, what kind of tie up do they already have and so on an
Q
I don't have a ready figure, but you can take a ballpark figure. You can take a capital expenditure of around Rs.5.50 crore per MW and 20% equity on that. So, we gave you a breakup of under construction as well as commissioned capacity. Bharani Vijaykumar: So, Rs.5.50 crore per MW will not be applicable for earlier projects, right, like, which were older?
Management
The earlier capacities have come from a different model of feed-in tariff. So, now, going ahead, whatever is the plans, the indicated numbers were for the forthcoming projects only. Bharani Vijaykumar: Correct. That's why I am asking for the 3.2 GW operational project which are earlier projects and will have different costs. You know, broadly the sense is that barring the very initial projects which were at a much higher cost, most of these projects are new, of course, we are doing close to about 1 crore to 1.5 crore per MW kind of equity. And just to give you a broad sense, NGEL equity base i
Q
Sir, my first question was on renewable energy. Sir, over the last 1.5 year, we have got a decent portfolio of C&I renewables, which probably includes likes of Greenko and HPCL, BPCL and others. So, if you can probably say something about this, what is our current portfolio in terms of the overall size? For how much is the term sheet signed? By term sheet I mean, that means that the projects will surely be done. And how do you see the growth in the next two, three years from this particular segment, this specific segment, Sir?
Management
So, if you are looking at C&I, for the moment, I will include railways in this. So, we have already assigned agreements/terms sheets/PPA for about 2.5 GW of RE RTC power. And so then how does this 12.6 GW equate to the earlier number that you mentioned? 3.3 GW is commissioned, 4.6 is under execution, and 12.6 GW is in the pipeline. Yes. So, the pipeline includes what has already been signed and is under planning for where we have already issued the tenders. So, we are in the process of issuing the tenders. That's broadly the overall thing. So, what we are working on is the total pipeline of ab
Q
I just had questions regarding the contract with Greenko for 1,300 MW. My first question was would it be possible to share the tariffs and the tenure of the contract signed with them?
Management
So, probably not right to share the tariff number. Tenure is 25 years. The second related question was green hydrogen costs are expected to come down in the coming years. So, does the term sheet allow the buyer to exit at some point in the future or is it binding for this 25 years? No, it's binding for 20 years, and review at the end of 20 years. Within 20 years, there is no effect.
Q
So, basically, I wanted to understand what are our new capacity addition plans in the next couple of years? And what is the pipeline that we have right now? By thermal pipeline I mean thermal tendering, sir, the new plants that we have.
Management
Well, as far as thermal is concerned, we are broadly targeting around 6 GW. When I say 6 GW, I am leaving out Talcher where the LOA has already been placed for 1320 MW. So, you can add another 6,120 MW, which will comprise of five different projects. We are expecting that much of this will be awarded by the end of the current fiscal. In FY24 itself most of the orders? Yes. Sir, the other question is, can you just give me the revenue, EBITDA, PAT for the entire renewable portfolio for FY23? We can give it to you separately.
Q
Well, thank you very much on behalf of NTPC and my colleagues here for participating in this conference and raising some very pertinent questions. Wherever we have assured to provide information separately, we will be doing that at the earliest. Thank you so much.
Management
Speaking time
Management
35
Moderator
10
Subhadip Mitra
8
Apoorva Bahadur
6
Dhruv Muchhal
6
Mohit Kumar
3
Nikhil Abhyankar
3
Nikhil Nigania
2
Sudhanshu Bansal
1
Status of Fuel Supply
1
Opening remarks
Sudhanshu Bansal
Thank you, Darwin. Good evening, everybody. On behalf of JM Financial, I welcome you all to the Conference Call of NTPC Limited to discuss the fourth quarter and FY23 results. We have with us the leadership team of NTPC comprising Mr. Jaikumar Srinivasan - Director (Finance); Mr. Ramesh Babu V. - Director (Operations); Mr. Ujjwal Kanti Bhattacharya - Director (Projects); and Mr. Shivam Srivastava - Director (Fuel). Thank you so much, Sirs, for your kind presence and giving JM Financial the opportunity to host the call. With this, I would like to hand over the call to Mr. Srinivasan, Director (Finance), for opening remarks and taking the call forward. Over to you, Sir.
Management
Thank you, and a very good evening to all the participants. I, Jaikumar Srinivasan - Director (Finance), welcome you to the Q4FY23 Earnings Conference Call of NTPC Limited. I have with me my colleague directors whose name have just been announced. I also have with me other key members of the NTPC team. Today, the Company has announced the audited financial results for FY23 along with the financial results for Q4FY23. The Key Performance Highlights for the financial year and quarter ended 31 March 2023 have already been disclosed on both the stock exchanges. Keeping up with the expectations of our stakeholders, NTPC has yet again recorded multi-fold progress in its operational and financial performance. The key highlights of our performance in FY23 are as follows. Operational Highlights of FY23 ➢ During FY23, NTPC group has added 3952 MW of commercial capacity to its portfolio. As on 31 March 2023, the commercial capacity of NTPC stands at 56368 MW on standalone basis and 72254 MW for t
Status of Fuel Supply
➢ During FY23, materialisation of coal against ACQ was 181.34 MMT (93.60%) as against 174.36 MMT (94.76%) in the corresponding previous period. Total coal supply during FY23 was 223.85 MMT including 14.56 MMT of imported coal as against 202.55 MMT in the previous year which included 2.47 MMT of imported coal. ➢ There has been an increase of ~65% in NTPC’s own coal production (from 14.02 MMT in FY22 to 23.2 MMT in FY23). Now I will update on various other financial highlights: ➢ Total Income of NTPC for FY23 is ₹167,724 crore as against previous year Total Income of ₹124,750 crore, registering an increase of 34.45%. Profit After Tax (PAT) for FY23 is ₹17,197 crore, as against ₹16,282 crore in the previous year, registering an increase of 5.62%. ➢ Total Income of the group for FY23 is ₹177,977 crore as against previous year Total Income of ₹134,994 crore, registering an increase of 31.84%. PAT of the group for FY23 is ₹17,121 crore as against previous year PAT of ₹16,960 crore. ➢ During
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