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Increase in revenue due to demand increase but operating cost impacts margins | NTPC Q2 FY22 Conference Call

Increase in revenue due to demand increase but operating cost impacts margins | NTPC Q2 FY22 Conference Call

Published on 17 November 2021 Views 21 Comments 0

 Consolidated Results

  • Revenue from operations for the company increased by Rs. 16.9% YoY to Rs. 32,404 crores. The QoQ growth for the company was 8.4%. Major reason is growth in generation segment due to increase in capacity.
  • EBITDA for the company increased from Rs. 8,512 crores to Rs. 8,980 crores, YoY growth of 5.5%. EBITDA growth on QoQ basis was small at 1.33%.
  • EBITDA margins were down by (-301) bps YoY to 27.7%. QoQ margins were down by (-194) bps. The margins were affected due to higher operating costs and adverse mix of products.
  • Profit Before Tax for the company increased to Rs. 4,648 crores, a YoY growth of 29.9%.
  • The Profit After Tax for the company stood at Rs. 3,599 crores, a small growth of 3% YoY and 5.5% QoQ.

Business Highlights

  • Generation of electricity at group level stood at 90.97 Billion units as compared to 77.93 Billion units in Q2FY21, a growth of 16.47%.
  • Operating costs for the company increased due to increase in costs for advancement of technologies. This ultimately affected EBITDA.
  • Plant availability factor for coal has reduced to 85% as compared to 92% in Q2FY21. The PLF for the plants increased to 70% as compared to 64%
  • In H1FY22, commercial capacity of 2,160 MW of was added by NTPC.
  • The company will be forming at least 2 international alliance to promote clear energy research and sustainability in value chain by the year 2025.
  • Surcharge income for the company has declined to Rs. 160 crores as compared to Rs. 660 crores in Q2FY21.
  • Overdue for the company has reduced to Rs. 6,050 crores as compared to 9,000 crores in Q2FY21.
  • The company is planning to add 15 GW of renewable capacity till FY24 and 45GW till FY32. The company currently has 1.4 GW of capacity and 6GW is at tender stage and under construction.
  • The company has become first energy company from India to declare its energy compact goals as part of UN High level dialogue.
  • The management has plans to monetise the renewable business and trading business.

Segment Results

  • On a consolidated basis, revenue from generation segment increased by 25% to Rs. 34,195 crores. The reason for the same is increase in demand for electricity and increase in capacity.
  • PBIT for the generation segment stood at Rs. 6,708 crores, a small decline of (-1.9%).
  • On a consolidated basis, revenue from others segment increased by 29.8% YoY to Rs. 2,474 crores.
  • PBIT for others segment increased by 90.9% to Rs. 134 crores.

Earnings Call Highlights

  • The company commissioned India’s largest floating solar project with a capacity of 25MW at Simhadri.
  • NTPC Renewable Energy Limited has signed MOU with Union Territory of Ladakh under which the company will set up country’s first hydrogen mobility project in the region.
  • Signed MOU with Uganda Electricity Generation Company Limited for collaboration in power sector.
  • The company issued bonds totalling to Rs. 6,996 crores during H1FY22.
    • Rs. 3,996 crores at 6.87%/annum for 15 years.
    • Rs. 3,000 crores at 6.69%/annum for period of 10 years.
  • Average cost of borrowing in H1FY22 was 5.96% as compared to 6.37% in H1FY21.
  • The company incurred Capex of Rs. 15,137.67 crores in H1FY22 compared to Rs. 12,983.14 in H1FY21.
  • The company has setup 140 public charging stations across various cities. The company has been allocated more 200 charging stations. The company is also looking to setup charging stations for highways. The company has already put a bid for setting up charging stations on Mumbai-Pune Highway. The EV charging business comes under their subsidiary NTPC Vidyut Vyapar Nigam.

Originally Published On: https://blog.investyadnya.in/ntpc-q2fy22-conference-call-highlights/
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