Synopsis: The energy company is evaluating a major nuclear project in Bihar, signaling a long-term shift toward clean base-load power, with state support and early-stage groundwork already underway.
The shares of this large cap company majorly engaged in in generation and sale of bulk power to State power utilities jumped upto 3 percent after evaluating a major nuclear power project in Bihar
With the market capitalization of Rs. 4,00,375 Crores, the shares of NTPC Ltd reached an intraday high of Rs. 413.60 per share rising nearly 3 percent from its previous day closing of 401.85 per share and is trading at a P/E of 16.6 whereas industry P/E stands at 31
What is the NEWS
NTPC Limited is exploring a nuclear power project in Bihar’s Banka district, around 250 km from Patna, with an estimated investment of about Rs. 25,000 crore. The proposal includes setting up two nuclear units of 700 MW each, taking the total planned capacity to 1,400 MW. The company has started a feasibility study, indicating that the project is still in its initial stage but is being seriously assessed.
Around 1,000 acres of land may be required for the project, reflecting its large scale. The Bihar government has shown support and is expected to assist with key requirements like land and water availability, which are essential for nuclear plants. This initiative is part of NTPC’s broader plan to diversify its energy portfolio and expand into nuclear power, where it is targeting about 30 GW capacity, aligning with India’s long-term goal of reaching 100 GW nuclear capacity by 2047.
About the Company and Financials
NTPC (National Thermal Power Corporation) Ltd along with its subsidiaries/ associates & JVs is primarily involved in generation and sale of bulk power to State power utilities. Other business of the group includes providing consultancy, project management & supervision, energy trading, oil & gas exploration and coal mining
NTPC Limited has a total operational capacity of 85,637 MW, with coal contributing 65,194 MW making up 76 percent , followed by solar at 8,595 MW contributing 10 percent , gas at 6,511 MW accounting for 8 percent , hydro at 4,507 MW forming 5 percent , and wind at 830 MW at 1 percent . Under construction, the company is adding 32,958 MW, where coal leads with 16,520 MW contributing 50 percent , followed by solar at 10,361 MW at 31 percent , wind at 4,146 MW making up 13 percent , and hydro at 1,931 MW at 6 percent .
Year on Year analysis: Revenue from operations has increased from Rs. 45,069 Crores to Rs. 45,846 Crores, up 1.7 percent. Operating profit has increased from Rs. 13,341 Crores to Rs. 14,570 Crores, up 9.2 percent and net profit has increased from Rs. 5,170 Crores to Rs. 5,597 Crores, up 8.2 percent
Quarter on Quarter analysis: Revenue from operations has increased from Rs. 44,786 Crores to Rs. 45,846 Crores, up 2.3 percent. Operating profit has increased from Rs. 12,816 Crores to Rs. 14,570 Crores, up 13.6 percent and net profit has increased from Rs. 5,225 Crores to Rs. 5,597 Crores, up 7 percent.
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