About NTPC
NTPC, India’s largest power utility with an installed capacity of 70,084 MW (including JVs), intends to reach 130 GW by 2032. Founded in 1975, NTPC aspires to be the largest and greatest power major in the world.
In May 2010, NTPC Ltd became a Maharatna company. As of January 2020, India has ten Maharatnas CPSEs. Platts ranks NTPC as the number two Independent Power Producer (IPP) among the top 250 global energy companies and No. 73 on overall global performance among energy companies.
Company’s History
NTPC, India’s largest energy company, was founded in 1975 to expedite the building of India’s power grid. Since then, it has established itself as the preeminent power major with a presence throughout the whole value chain of the power generation industry. From fossil fuels, it has transitioned to hydro, nuclear, and renewable energy sources for electricity generation. This venture will play a significant role in minimizing its carbon footprint by reducing emissions of greenhouse gases. To boost its primary business, the company has expanded into consulting, power trading, training of power specialists, rural electrification, ash utilization, and coal mining.
1975
- founded on November 7, 1975.
1976
- Shri D.V Kapur became the first Chairman and Managing Director of NTPC on March 19.
- The Indian government approved NTPC’s first Super thermal power project at Singrauli, Uttar Pradesh, on December 8.
- The company’s authorized share capital was Rs125 crore.
1977
- In September, NTPC required the first land strip at Singrauli.
- The first group of executive trainees joined the organization.
- In June, the first Major contract worth Rs.57,500,000 was issued for site departure work in Singrauli.
1978
- The Government of India approved the NTPC-Korba and NTPC-Ramagundam projects in January and February, respectively. On November 14, Prime Minister Shri Morarji Desai lay the foundation stone for NTPC Ramagundam.
1979
- In March, the Indian government approved the implementation of the Farakka Project.
- The company’s authorized share capital increased from Rs 125 crore to Rs 300 crore.
1980
- The former Soviet Union offered assistance in the construction of power plants. Vidhayachal was designated as the initial project to get such aid.
- In June, the authorized share capital was increased from 300 crore rupees to 800 crore rupees.
1981
- On December 29, 1982, Prime Minister Indira Gandhi laid the foundation stone for the NTPC-Farakka power plant.
- The NTPC-Vindhyachal Foundation Stone was placed by the Honorable Prime Minister Smt. Indira Gandhi on November 12th. NTPC’s CMD, Shri AK Sah, was also present.
1983
- On November 26th, the first 200 MW Unit of NTPC-Ramagundam was put into operation.
1984
- The transmission line based on HVDC (High Voltage Direct Current) technology, commissioned for power transmission from Rihand to Delhi Singrauli, obtained a USD 150 million loan from the World Bank via the Indian government.
1985
- In December, the Government of India authorized NTPC to establish three gas-based combined-cycle projects in Kawas (Gujarat), Auraiya (Uttar Pradesh), and Anta (Rajasthan). The World Bank agreed to provide $485 million for these projects, the largest single loan in the bank’s history.
1986
- Shri ML Shishoo, CMD of NTPC, reviews Rihand with officials from the electricity ministry.
1987
- Surpassed the 5000 MW mark for installed capacity
- Korba also entered the 500 MW phase on May 31 when it synchronized its first 500 MW plant.
1988.
- First Japanese syndicated loan of 30 billion JPY was raised.
- Rihand started the Operational phase on March 31 when its first 500 MW unit was commissioned.
- On June 26, the first 500 MW unit of Ramagundam was commissioned.
1989
- Consultancy division was established,
- Commissioning of the first unit (88 MW) of the first gas-based combined cycle power plant at Anta, Rajasthan.
1990
- The Prime Minister Shram Awards were presented by the Honorable Prime Minister of India, Shri Chandra Shekhar.
1991
- In February, Vindhyachal completed stage I activities by synchronizing its sixth and final 210 MW unit.
- On December 21, the first unit of NTPC (Dadri) was commissioned.
1992
- According to laws passed by the Indian Parliament, the company’s transmission systems were transferred to Power Grid Corporation Limited.
1993.
- IBRD granted its first direct credit of $400 million under the time slice concept for its projects.
1994
- Jhanor-Gandhar (Gujarat) is the first thermal power station to have an integrated Liquid Waste Treatment Plant in operation (LWTP).
1995
- The NTPC celebrated 20 years of existence (1975-1995). Numerous events were planned to commemorate its 20th anniversary.
- The new campus of the Power Management Institute (PMI) was opened on July 25 by the Union Minister of Power, Shri N.K.P. Salve.
1996
- Sixth unit (210 MW) of Ramagundam ran continuously for 406 days for the first time in India PLF of Talcher Thermal increased from 18.7% at the time of takeover to 43.7%
1997
- On August 3, the Honorable Prime Minister Shri IK Gujral lay the Foundation Stone at NTPC Faridabad.
1998
- The first Naptha-based facility with a capacity of 350 megawatts was inaugurated at Kayamkulam.
1999
- With a PLF of 96.12%, the Dadri Thermal Power Project in Uttar Pradesh was deemed the greatest in India.
- On October 7, Dadri, Uttar Pradesh received ISO-14001 certification.
2000
- In Himachal Pradesh, building has begun on the first hydroelectric power project with a capacity of 800 megawatts.
2001
- The 2,260 MW unit of NTPC-Vindhyachal was dedicated to the country in July; Shri CP Jain, NTPC’s CMD, was in attendance.
2002
- The installed capacity of three NTPC companies, NTPC Electric Supply Company Limited, NTPC Hydro Limited, and NTPC Vidyut Vyapar Nigam Limited, has surpassed 20,000 MW.
2003
- Participated in the Government of India’s “Mission 2012: Power for All” Tripartite Agreement (TPA) inked with Reserve Bank of India
2004
- A contract has been won for the first Super Critical Thermal Power Plant in Sipat.
2005
- NTPC Simhadri received the International Project Management Award at the World Congress of the International Project Management Association. The only Asian company to earn this honour was NTPC.
2006
- On January 16, the Honorable Prime Minister Shri Manmohan Singh laid the Foundation Stone of NTPCBongaigaon.
2007
- Sipat’s 765 KV switchyard transmission system was activated, making it the largest in the nation. On the event was the Hon. Union Minister of Power Shri Sushil Kumar Shinde, the Power Secretary Shri RV Shahi, the Hon. Chief Minister of Chhattisgarh Shri Raman Singh, and the CMD of NTPC Shri T Sankaralingam.
2008
- Shri RS Sharma, CMD of NTPC, addressed the media about NTPC’s accomplishments and future goals.
2009
- NTPC Energy Technology Research Alliance (NETRA), the Research and Development arm of NTPC, was established.
2010
- NTPC-Dadri Unit-V was commissioned with success. This is the first unit scheduled to generate power for the Commonwealth Games in October 2010 in Delhi.
2014
- On August 21, 2014, the Mouda Super Thermal Power Station Stage I was inaugurated by the Honorable Prime Minister Narendra Modi.
2015
- On 2 November, the Honorable Union Minister of Power Shri Piyush Goyal presented Shri AK Jha, CMD of NTPC, with an award for NTPC’s contribution to the Swachh Vidyalaya Abhiyan by successfully constructing toilets in 17 states and 83 districts of India.
2016
- The Prime Minister Laid the Foundation Stone for Telangana STPP Phase-1.
- NTPC-Dadri received the 2016 Top Plant Award from Power Magazine in the Coal-fired Generation category. On 18 October, Prime Minister Narendra Modi dedicated NTPC-Koldam to the country.
2017
- President Shri Pranab Mukherjee presented the SCOPE Award for RTI Act, 2005 Compliance at the SCOPE Meritorious Awards in New Delhi.
2018
- On September 22, the Hon’ble Prime Minister Shri Narendra Modi dedicated NTPC-Dulanga to the nation.
- On May 25, the Honorable Prime Minister Shri Narendra Modi laid the Foundation Stone for NTPC-Patratu.
2019
- NTPC was awarded “Best Performing Utility of the Country in the Thermal Power Sector” on January 4 in New Delhi by the Central Board of Irrigation and Power (CBIP). Shri RK Singh, the Honorable Union Minister of State for Power and New & Renewable Energy, gave the award to Shri Gurdeep Singh, NTPC’s Chief Executive Officer.
- Shri AK Bhalla, Secretary, Power, opened the Techno Galaxy Exhibition at IPS-2019 in Raipur on January 12 as the 2,000th coal rake from NTPC-Pakri Barwadih rolled out. NTPC’s CMD, Shri Gurdeep Singh, was also present. The exhibition featured innovations and merchandise from 42 Indian and foreign enterprises.
- 6.81 MMT of coal were extracted from Pakri-Barwadih. The production has exceeded the mine plan’s objective. The mine began production of coal on April 1, 2019.
2020
- NTPC’s subsidiary commissions Unit1 of the 150 MW Kameng Hydro Electric Project. NTPC acquires a 500 MW solar park consultant project from the Republic of Mali.
- NTPC enters an MOU with the IOC and SDMC
- NTPC’s JV and Noida Authority reach an agreement to deploy EV charging stations.
- NTPC and NIIF sign an agreement to explore business potential in India.
- NTPC commissions the 800 MW Unit-2 of the Lara Super Thermal Power Project.
- Inks MOU with Greenko Energies JBIC executes a foreign currency loan arrangement with the Ministry of Energy pursuant to a memorandum of understanding with the Ministry of Energy.
Top Shareholder
Below is a list of the top shareholders of NTPC as of June 2022.
Company’s HistoryShareholder |
No. of Shares | Shareholding (%) |
President of India | 4,95,53,46,251 | 51.10% |
CPSE Exchange Traded Scheme | 30,60,71,238 | 3.16% |
HDFC Balanced Advantage Fund | 31,89,07,374 | 3.29% |
ICICI Prudential Value Discovery Fund | 48,42,97,400 | 4.99% |
SBI Nifty 50 ETF | 16,70,20,850 | 1.72% |
Life Insurance Corporation of Company | 83,51,04,291 | 8.61% |
Top Management
Below is a list of top management NTPC as of June 2022
Name | Designation |
Mr. Gurdeep Singh | Chairman & Managing Director |
Mr. Chandan Kumar Mondol | Director – Commercial |
Mr. Jaikumar Srinivasan | Director – Finance/ Chief Financial Officer |
Mr. Dilip Kumar Patel | Director – Human Resources |
Mr. V Ramesh Babu | Director – Operations |
Mr. Ujjwal Kanti Bhattacharya | Director – Projects |
Ms. Nandini Sarkar | Company Secretary & Compliance Officer |
Highlights From NTPC’s Latest Quarterly Results – Q1 FY 23
The company with installed more than 69 GW of capacity, released unaudited financial results for the first quarter of the fiscal year 2023 on July 29, 2022.
- NTPC announced a 16.87% (Standalone) increase in Profit after Tax at Rs 3977.7 crore for the First Quarter of the Financial Year 2023. In the same quarter a year before, the profit was Rs 3,443,72 crore. The profit slipped on sequential basis by 23 percent year-over-year from Rs 5199.51 crore at the end of the March 2022 quarter.
- The NTPC generated 104.42 billion units in the first quarter of fiscal year 2023 compared to 85.81 billion units in the first quarter of fiscal year 22, a 22% increase.
- NTPC’s Q1 FY23 standalone gross generation is 86.88 Billion Units compared to 71.75 Billion Units in the previous years, representing a 21% increase.
- During the first quarter of FY2023, NTPC Coal stations recorded a higher plant load factor than the national average of 69.49%.
- NTPC’s total revenue for the first quarter of fiscal year 2023 is Rs 39,202.74 crore, a 46.27 percent rise from the previous period’s total revenue of Rs 26,802.25 crore. The net income for the first quarter of fiscal year 23 is 3,676.43 billion rupees, up from 3,145.63 billion rupees in the first quarter of fiscal year 22. This is an increase of 16.87%.
- On a consolidated basis, the group’s total revenue for the first quarter of fiscal year 2023 is Rs 43,560.72 crore compared to Rs 30,390.60 crore for the same time in the previous fiscal year, representing an increase of 43.34 percent. The group’s net income for the first quarter of fiscal year 2023 is Rs 3,977.77 crores compared to Rs 3,443.72 crores for the first quarter of fiscal year 2022, representing an increase of 15.51 percent.
Stock Analysis
Investing in stocks needs a thorough review of financial data to determine a company’s genuine net value. This is often accomplished by reviewing the company’s income statement, balance sheet, and cash flow statement. This can be tedious and time-consuming. It is easier to determine a company’s performance by examining its financial ratios, which help to make sense of the massive quantity of information contained in its financial statements.
Here are a few crucial tools that every investor’s research process must include.
- PE ratio: Price to Earnings ratio, which reflects how much an investor is prepared to pay every rupee of earnings. As a rule of thumb, stocks with a low P/E ratio are undervalued (it depends on other factors too). The PE ratio for NTPC is 9,99, which is low and somewhat inexpensive.
- Return on Assets (ROA) entails the following: Return on Assets gauges a company’s ability to generate a profit from its investment in assets. In other words, ROA measures a company’s ability to turn the funds required to acquire assets into net income or profits. ROA of 4.47 percent for NTPC is a negative indicator of future success. (better standards are always preferred)
- Current ratio: The current ratio assesses the ability of a corporation to meet its short-term liabilities with its short-term assets. A greater current ratio is desirable so that the corporation can withstand unanticipated business and economic fluctuations. The Current ratio for NTPC is 0.95.
- Return on equity gauges a company’s capacity to create profits from the investments of its shareholders. In other words, the return on equity ratio indicates the amount of profit generated per rupee of common stockholders’ equity. ROE for NTPC is 13.24%. (higher is preferable)
- The debt-to-equity ratio is a useful indicator for evaluating the financial structure and performance of a company. The D/E ratio of 1.35 for NTPC indicates that the company has a low amount of debt.
- Inventory turnover ratio: It measures the number of times an organization has sold and replaced its inventory during a given time period. NTPC’s Inventory turnover ratio of 12.44 demonstrates inadequate Inventory and working capital management on the part of management.
- Sales: NTPC has recorded a revenue increase of 17.13%, which is consistent with its growth and performance.
- Operating Margin: This reveals the operational effectiveness of the business. NTPC has an operating margin of 28.93% for the current fiscal year.
- Dividend Yield: Indicates the proportion of dividends paid to the price of the stock. NTPC’s dividend for the current year is Rs 7 and its yield is 4.19 percent.
FAQ On NTPC
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What is NTPC’s share price, and what are the returns for NTPC’s shares?
NTPC’s share price is INR 164.20 as of 19th October 2022. NTPC has provided a return of approximately 8.29% in the past five years as of 19th October 2022.
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What are the 52-week highs and lows of NTPC?
As on 22nd September 2022:
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- 52-wk high Rs 176.15
- 52-wk low Rs 119.10
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What are the key metrics to analyse NTPC’s Share Price?
Key metrics to analyse any share price are: 52-week high, a 52-week low, 1-year return, 5-year return, etc.
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Who are the peers of NTPC?
Peers of NTPC include Adani Power Ltd., JSW Energy Ltd., KEC International Ltd., NLC India Ltd., Reliance Power Ltd., Jaiprakash Power Ventures Ltd., RattanIndia Power Ltd. and Gujarat Industries Power Company Ltd.
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What is the market cap of NTPC?
The market cap of NTPC is INR 1.59 Lakh crores as of 19th October 2022.
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