Saturday

04


December , 2021
NHPC LIMITED
16:50 pm

Nandini Dasgupta


Company Profile

NHPC Limited is an Indian government hydropower company under the ownership of Ministry of Power, incorporated in the year 1975 with an authorised capital of ` 2,000 million and an aim to plan, uphold, arrange and develop hydroelectric power. Later on, NHPC prolonged its substance to include other sources of energy like Solar, Geothermal, Tidal, Wind etc. At present, NHPC is a Mini Ratna Category-I Enterprise with an authorised share capital of `150,000 Million (approximately). With an asset stand of over ` 387,180 Million (approximately), the company is among the top ten businesses in the country in terms of projects from idea to commissioning.

Renewable Power Generation Industry in India

 Indian renewable energy sector is the fourth most striking renewable energy market in the world. India was ranked fourth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2020.

 Installed renewable power generation capacity has gained pace over the past few years, posting a CAGR of 17.33% (approximately) between FY16-20.

As India looks to meet its energy demand on its own, which is likely to reach 15,820 Tera Watt Hour (approximately) by 2040, renewable power is set to occupy a vital role in the coming future.

The Government is dedicated to increased use of clean energy sources and is already undertaking various large-scale sustainable power projects and promoting green energy heavily. In addition, renewable energy has the potential to create many employment opportunities at all levels, especially in countryside areas.

As per the Central Electricity Authority (CEA) estimates, by 2029-30, the distribution of renewable energy generation would augment from 18% to 44% (approximately).

 The Government of India wants to develop a ‘green city’ in every state of the country, powered by renewable energy. The concept will mainstream environment-friendly power through solar rooftop systems on all its houses, solar parks on the city’s fringes, waste to energy plants and electric mobility-enabled public transport structure.

Company Perspective and Review

Amidst the pandemic induced challenges, the company has performed magnificently well; determined by purposeful implementation and financial discretion. NHPC have earned the highest ever profit of ` 3,233.37 crore (approximately) thereby registering a growth of 7.52% y-o-y.

NHPC has signed a MoU with the Indian Renewable Energy Development Agency Limited (IREDA) on January 8, 2021 with a view to increase NHPC’s path in renewable energy
in the nation.

Speedy growth in urbanization, widespread electrification and shift to electrification of transport infrastructure are some of the key factors which will keep the demand for electricity in uptrend in the probable future and NHPC will play a key role in meeting the greater than before demand.

NHPC has set itself targets of a CAPEX of ` 9,104 crore
for FY 2021-22 including investments in JVs and subsi-diaries and having a portfolio of 20000 MW (approximately) capacities by the end of the current decade.

For the year ending March 2021 NHPC has declared an equity dividend of 16.00% amounting to ` 1.6 per share. The company has a good dividend track report and has consistently declared dividends for the last 5 years. The Debt to Equity ratio of the company is promising with acceleration in the growth rate making the scrip a good long term bet.

 

 

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