NTPC, the country’s largest power generation company, recently held a press conference in order to announce provisional unaudited financial results for FY05. As per the reported numbers given by the company, revenues were up 18% YoY, excluding the impact of the one-time settlement scheme. Profits were up almost 1% YoY. However, if we exclude the impact of the one-time settlement scheme last year, profit growth stood at over 33% YoY. Importantly, realisations of monthly bills from April 2004 to March 2005 were 100%.
The company recorded a generation of 159.1 Billion Units (BUs), showing an increase of 6.7% over the previous year’s generation of 149.2 BUs. NTPC stations recorded an all time high PLF (plant load factor, or capacity utilisation) of 87.5%, which is the highest for any financial year since its inception. NTPC currently has a share of 20.2% in the total installed capacity of the country. Return On Capital Employed (ROCE) and Return On Net Worth (RONW) during 2004-05 based on provisional and unaudited results were 11.8% and 13.2% respectively as compared to 12.9% and 14.9% during 2003-04 including the effect of One Time Settlement Scheme of earlier years.
NTPC added 2,000 MW (17.5 BUs) of generation capacity during FY05, taking its total capacity to 23,749 MW (208 BUs). The company has plans to become a 45,000 MW plus company by the year 2012. This includes adding green field capacity, expansion of existing stations, joint ventures and takeover of state electricity boards’ stations. The government has planned a capacity addition of around 105,000 MW by the end of the eleventh five-year plan (year 2012). NTPC is thus, expected to contribute around 20% to the total incremental power generation capacity planned by 2012. As per the updated corporate plan from 2002-2017, the company has envisaged an installed capacity of over 56,000 MW by 2017 and this includes addition of hydropower capacity and forays into non-conventional and nuclear power generation.
NTPC has set a tenth plan capacity addition target of 9,160 MW, of which 3,500 MW have already been commissioned, 4,210 MW are under construction and the balance 1,450 MW award for Main Plant is expected to be placed shortly. The eleventh plan target for the company is around 17,333 MW, of which 5,260 MW is already under implementation. NTPC spent Rs 53 bn towards capex in FY05, up from the previous figure of Rs 46 bn.
So, what does all this mean?
|
This portion of the article is available only to subscribers of Equitymaster's Premium Research Services. If you are a subscriber to StockSelect or ResearchPro, please use your username and password to log in and read our view.
|
|
|
| 
RSS
