NTPC (NTPC) Q4 10/11 earnings summary

Executive summary

• FY11 capacity addition reached 2,490 MW, including 500 MW through JVs, the highest annual addition to date; total installed capacity including JVs and subsidiaries was 34,194 MW at year-end.

• Coal stations achieved 88.29% PLF versus the national 75.08%; total generation was 220.54 BU, up 0.77% YoY, with lower grid demand limiting output.

• FY12 priorities include 4,320 MW of capacity additions, ₹26,400 crore of capital outlay, fuel security and expansion across hydro, renewables, nuclear and international markets.

Financial highlights

• Standalone total income rose 16.59% YoY to ₹57,399.49 crore; net profit after tax increased 4.29% to ₹9,102.59 crore.

• Adjusted standalone PAT, excluding one-off and prior-period effects, was ₹8,911.76 crore versus ₹8,451.99 crore, up 5.44%; reported PAT includes net prior-period income of ₹1,638.72 crore.

• Consolidated income was ₹60,008.18 crore versus ₹51,203.56 crore; consolidated PBT rose to ₹12,392.33 crore from ₹11,049.11 crore and PAT to ₹9,348.23 crore from ₹8,837.65 crore.

• Standalone energy sales increased 18% to ₹54,704.55 crore, partly reflecting higher fuel-cost pass-through and added commercial capacity; average tariff was 263.06 paise/kWh versus 227.41 paise/kWh.

• Fuel expense rose 20% to ₹35,373.78 crore, with fuel cost per unit generated at ₹1.60 versus ₹1.35, reflecting coal price increases and greater use of imported coal.

Outlook and guidance

• FY12 capacity addition target is 4,320 MW; installed capacity ambition is 128 GW by 2032, supported by greenfield projects, expansions, JVs and acquisitions.

• Approved FY12 capital outlay is ₹26,400 crore, 18% above FY11 capex; 14,748 MW, including 3,890 MW through JVs, was under construction at March 31, 2011.

• Long-term PPAs were signed for 49,000 MW during FY11; coal linkage for 10,920 MW of capacity was secured for FY12 and 12 MMT of imported coal was contracted with STC.

• Renewable plans target ~1,000 MW by 2017; hydro projects of 1,320 MW were under implementation, with 291 MW under bidding.

• Management cited rising population, urbanization and living standards as demand drivers; national generation capacity needs were estimated at 778–960 GW by 2032 for GDP growth of 8–9%.