NTPC's Q2 Profits Surge 38.3%, Announces Dividend Amid Record Power Demand

India's top power generator, NTPC Ltd, reported a consolidated net profit of Rs 4,726.4 crore in its second quarter, marking a 38.3% increase compared to the same period the previous year.

NTPC, the country's largest integrated power utility, significantly contributed to 25% of India's power needs. The company also reported a total revenue from operations of Rs 44,983.35 crore in the September 2023 quarter, demonstrating a 1.8% increase from the corresponding quarter of the previous fiscal year.

The financial results led to the approval of the first interim dividend of Rs 2.25 per share on the face value of paid-up equity shares of Rs 10 each for FY24. Shareholders can expect to receive this dividend on November 23.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) also surged during the quarter, reaching Rs 13,081.5 crore, an 18.7% increase from the same period in the previous year. This increase in EBITDA contributed to a rise in the EBITDA margin by 416 basis points to 28.8%, up from 24.6%.

NTPC's power generation capabilities further strengthened during the quarter, with a gross power generation of 90.302 billion units (BU), marking a 5.6% increase compared to the previous year. Additionally, coal production from the company's captive mines saw substantial growth, reaching 5.59 million metric tonnes (MMT), marking a notable increase of 29.4% from the previous year.

NTPC's installed capacity also saw growth, with the NTPC group's total capacity reaching 73,824 MW in Q2FY23-24, up from 70,254 MW in the same quarter of the previous fiscal year. On a standalone basis, NTPC reported a total installed capacity of 57,838 MW, up from 57,639 MW in Q2FY22-23.

These strong financial results come in the wake of record-breaking power demand in India, which reached nearly 240 GW on September 1, 2023, driven by soaring temperatures.

The shares of NTPC ended the previous trading session with gains of 2.5% at Rs 237.10 per share on NSE.