Monthly Call

NTPC

Current Market price: 158
Target 1: 174
Target 2: 179

Current Quote of NTPC

NTPC reported a 20% revenue growth for the quarter ended June 30, 2007 to Rs 8,969.7crore. Net profit surged by an impressive 53% to Rs 2,369.9 crore. The main driver for the sharp increase in bottom line was the fall in interest expenses on the back of Forex gain. Operational performance has also improved. Power generated increased 12% Y-o-Y to 52,019 MU. The company’s coal-based plant boasts a high PLF of 93.9% against 87.8%. In FY07, the company 3,155 MW of capacity and in the first quarter of FY08, it has further enhanced it by an additional 500 MW. Currently, the company’s total power generation capacity is 26,850 MW and under joint ventures 1,054 MW. NTPC plans to increase its power generation capacity to 50,000 MW by FY12 and 75,000 MW by FY17. Its current installed capacity of the country’s overall coal-based, gas-based and JV capacities is 82%, 14% and 4% respectively. The company also plans to increase its trading volume from 2.66 BUs to 10 BUs by 2011-12 and to 25 BUs by 2016-17. It plans to have a distribution capacity of 1,000 MW in FY12 and 2000 MW in FY17. To secure its fuel linkages, the company will have a coal mining capacity of 15 million tpa by FY12 and 47 million tpa by FY17.

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