Ntpc Limited · NSE:NTPC
Ntpc — Investor Presentation (August 2017)
42 slides from Ntpc's investor presentation, Aug 1, 2017
Slide 1: Investor Presentation: Energizing India's Growth
AMaharatna Company Energizing India's Growth
Slide 2: NTPC: Vision, Mission and Core Values
NTPC: Vision, Mission and Core Values Vision Mission To be the World’s Provide Reliable Power and Related Leading Power Company, Solutions in an Economical, Efficient Energizing India’s Growth and Environment friendly manner, driven by Innovation and Agility Core Values-ICOMIT Integrity Total Qualit
Slide 3: Presentation Outline
Presentation Outline Company Overview Financial Highlights Operations Highlights Power Sector – in transition NTPC – Staying Ahead of the Curve Risks & Mitigation Sustainability Initiatives Copyright © 2016 Your Company All Rights Reserved. 3
Slide 4: NTPC Energizing India's Growth
NTPC Energizing India’s Growth Largest Power Generator in India One of the 7 Maharatnas of Government of India Strong Support from the Government of India GoI Control with 69.74% holding Plays a pivotal role to achieve power for all 16% share in India’s total installed capacity Maintaining L
Slide 5: Key Performance Highlights of FY 17
Key Performance Highlights of FY 17 NTPC’s Coal stations achieved PLF of 78.59% against Group recorded All India PLF of With Capacity gross generation 59.88% Addition of of 276.77 BUs- 3845 MW Aspire to cross NTPC is today 1,000,000,000 51671 MW units/day strong Record TPAs extended- Realisation of
Slide 6: NTPC Group: Pan India Presence
NTPC Group: Pan India Presence Share of Installed Capacity Share of Electricity Generated (*as on March 31,2017) (during FY17) 16% 24% Koldam Dadri (817MW) (800MW) Dadri SolarPV (5MW) Faridabad (430MW +5MW Solar) Lata Tapovan (171MW) Badarpur (705MW) Tapovan Vishnugad (520MW) 84% Jhajjar (1,500MW) N
Slide 7: Group NTPC – Subsidiaries and Joint Ventures
Group NTPC – 5 Subsidiaries and 20 Joint Ventures Power Generation Services Power Trading Coal Acquisition Kanti Bijlee Utpadan Bangladesh India Friendship NTPC Electric Supply NTPC Vidyut Vyapar Nigam Ltd. International Coal Ventures Pvt. Nigam Ltd. (65%) Power Company Pvt Ltd. (50%) Company Ltd. (
Slide 8: Financial Highlights
Financial Highlights
Slide 9: Sustaining Robust Margins along-with Revenue Growth
Sustaining Robust Margins along-with Revenue Growth Rs. Crore Particulars Q1 Q1 FY 17 FY 16 FY15 FY14 FY13 FY 18 FY 17 Revenue from Operations 19,879 19,063 78,273 70,844 73,237 72,019 65,674 Other Income 663 158 1,069 1,165 2,100 2,689 3,102 Gross Profit 7,802 7,431 30,701 27,045 24,403 26,189 24,6
Slide 10: Consistently Growing Balance-Sheet
Consistently Growing Balance-Sheet Rs. Crore Particulars (Stand alone) FY 17 FY 16 FY15 FY14 FY13 Total Fixed Assets (Net block+CWIP) 180,093 158,196 134,909 117,000 100,046 Investments 8,952 8,014 7,239 8,121 9,138 Net Worth 96,231 91,294 83,830 85,815 80,388 Total Debt 103,840 91,828 86,031 67,170
Slide 11: Prospering by Optimal Leveraging
Prospering by Optimal Leveraging Debt/Equity 250 BUs Average Rate of Borrowing Interest Service Coverage 8.07% Ratio 1.03 1.01 1.08 10.4 0.78 7.67% 8.6 0.72 7.45% 6.7 6.5 5.9 7.05% FY 13 FY 14 FY 15 FY 16 FY 17 FY 15 FY 16 FY 17 Q1 FY 18 FY 13 FY 14 FY 15 FY 16 FY 17 Strong credit metrics ensure deb
Slide 12: High Returns to Investors
High Returns to Investors Consistent & High Dividend Payouts – Paying dividend for last 24 years 70% 57.50% 6000 57.50% 60% 5000 50% 43.60% 4000 40% 50.53% 33.50% 43.77% 25.00% 42.20% 3000 30% 20% 32.46% 2000 24.09% 1000 10% 5,523 5,546 2,479 3,325 4,323 0% 0 2012-13 2013-14 2014-15 2015-16 2016-17
Slide 13: Operations Highlights
Operations Highlights
Slide 14: Highly Efficient Plant Operations
Highly Efficient Plant Operations Proven Operational Excellence over last 2 decades Standalone + Group Generation during last decade (in BUs) Contribution from Group Companies in total generation has increased over Consistently maintaining spread of 15%-16% in terms of PLF over six times during la
Slide 15: Sustained Growth in Generation
Sustained Growth in Generation….handholding SUs 330 5.07% Growth in Group Generation in FY 17 Sustained Growth in Generation 280 263.42 276.77 250.31 241.98 NTPC(Standalone) Group NTPC has achieved a generation of 276.77 230 NTPC (Group) BUs in FY17 registering a growth of 5.07% on 180 previous ye
Slide 16: Sustaining Status of Competitive Cost Power Producer
Sustaining Status of Competitive Cost Power Producer Rs./kWh Tariffs based on Regulations notified by CERC. Regulatory 3.30 3.28 3.18 3.30 mechanism assures Returns balancing Risk -reward Ratio. 2.96 2.96 CERC vide 4th Amendment to IEGC has allowed Compensation against degradation of the operati
Slide 17: Continuous Reduction of ECR of coal stations
Continuous Reduction of ECR of coal stations ECR brought down effectively by 39 paise during FY 17 Third party sampling and grade Reasons for offset of re-conciliation started reduction: 2.07 2.03 2.02 2.01 2.03 2.04 2.04 2.00 1.98 1. Impact of Clean 1.97 1.96 1.95 1.94 1.93 1.93 Energy Cess w.e.f.
Slide 18: Long-term Fuel Security & Fuel Supply
Long-term Fuel Security & Fuel Supply Coal Transportation Long term Fuel Supply Agreements have been signed with CIL and SCCL for (Standalone Commissioned Capacity) supply of coal for a period of 20 years for total ACQ of 164.47 MTPA Railways, 12915, NTPC through sustained policy advocacy has se
Slide 19: People before PLF
People before “PLF” OUR HR VISION “To enable our people to be a family of committed world class professionals, making NTPC a learning organization” Consistent Improvement in Productivity of Manpower FY 12 Per Employee FY 17 43% Rs.2.70 crore Revenue Rs.3.85 crore 72% Rs.0.82 crore Value Added Rs.1.4
Slide 20: Transforming Power Sector
Transforming Power Sector
Slide 21: Transforming Power Sector
Transforming Power Sector Today Target Installed Capacity ~330 GW ~ 515 GW by FY22 Generation (in BUs) ~1160 BUs ~1611 BUs by FY22 Peak Load Demand ~153 GW ~235 GW by FY22 ~ 3026 kWh Per capita consumption ~ 1075 kWh (World average) Renewable capacity ~57 GW 175 GW by FY22 Coal Requirement ~600 MT 7
Slide 22: Strong Growth Drivers for Power Sector in India
Strong Growth Drivers for Power Sector in India India’s GDP is expected to grow at Electricity Demand in India is expected ~8% over next 5 years. to grow at CAGR of ~7%. Demand Supply Growing population coupled with increasing Increased coal production by coal companies in urbanization to boost
Slide 23: Moving towards Green Future
Moving towards Green Future FY17 FY22E Lagging Grid Growth Price Trends Capacity Capacity (GW): Grid growth as a driver for • Rapid Technological (GW) solar lighting demand varies innovations & scale-up of 57 175 by region. Grid Penetration commercialization efforts needs to grow to counteract dec
Slide 24: Improved policy Ecosystem….energising Power Sector
Improved policy Ecosystem….energising Power Sector Quantum jump in Index of ease Revised Tariff Policy of getting Electricity UDAY (A new dawn for distribution sector) Ensuring electricity for all Turning around DISCOMs Efficiency for affordable tariffs through Financial & Operational Enviro
Slide 25: NTPC: Staying Ahead of the Curve
NTPC: Staying Ahead of the Curve Clear Growth Visibility 01 Leading India’s Energy 02 Transition Backward integration 03 leading to Fuel Security Aligning with Changing 04 Norms & Disruptions Copyright © 2016 Your Company All Rights Reserved. 25
Slide 26: Clear Growth Visibility
Clear Growth Visibility Ensuring Investment Land Water Coal Environment Clearances PPAs Availability Approval Current development pipeline (in MW) 130000 24888 27470 20976 4995 51671 Present Under Construction Under Tendering FR Approved Under feasibility & Total by 2032 balance Projects Under Const
Slide 27: Clear Growth cont… commissioning targets for FY18
Clear Growth cont… commissioning targets for FY18 Project Target MW NTPC JV Projects Commissioned Lara (Unit#1) 800 800 Solapur (Unit #1) 660 660 660 Gadarwara (Unit#1) 800 800 Kudgi (Unit#3) 800 800 Bongaigaon (Unit #3) 250 250 Mandsaur Solar 250 250 245 Rojmal Wind 50 50 18 Singrauli Hydro 8 8 Nab
Slide 28: Why to Invest in NTPC
Why to Invest in NTPC Growth in PPE, CWIP & Financial leverage CWIP PPE CWIP % of PPE & CWIP Financial Leverage (Debt-Equity) 40.00 1.36 1.35 1.33 160% 1.29 35.00 1.20 140% 30.00 1.03 1.01 1.08 120% 25.00 0.78 100% 0.72 20.00 80% 15.00 60% 10.00 37% 38% 42% 42% 45% 43% 41% 40% 35% 5.00 23% 19% 20% -
Slide 29: NTPC Leading India's Energy Transition
NTPC Leading India’s Energy Transition ……… Leading Nation Towards Green Future Present_2017 NTPC_2032 150 Nuclear Fuel Type (51 GW) (130 GW) Hydro 100 Coal/Gas 50 91 Solar/Other RE Coal/Gas Solar/Other RE 0.6 32 50 Hydro 0.8 5 0 2017 (51 GW) NTPC_2032(130 GW) Nuclear 0 2 NTPC Solar Power Plan….Diver
Slide 30: Widening of Growth Path with Commencement of Coal Mining
Widening of Growth Path with Commencement of Coal Mining Status of Coal Mines Coal block GR (MMT) Mining Capacity Status MMTPA EC FC Acq. Mining/MDO Notice Pakri Barwadih 1574 18 Yes Yes Yes Mining started Chatti Bariatu 548 7 Yes Yes Yes RA Completed Kerandari 285 6 Yes St-I accorded Yes Bids Opene
Slide 31: New Initiatives – Dynamism to changing norms & disruptions
New Initiatives – Dynamism to changing norms & disruptions Acquisition of Chhabra Thermal Power Station MoU has been signed with Rajasthan Vidyut Utpadan Nigam Ltd. for possible acquisition of Chhabra St-I & II by NTPC in phased manner. The due diligence and availability of pre-requisites is being e
Slide 32: Pooled Tariff - Cost Competitiveness
Pooled Tariff - Cost Competitiveness States schedule power based on its own Merit Order Beneficiaries of one region are not able to schedule power from stations in other Present regions since it does not have allocation. Scenario As a result power from cheaper stations is not fully scheduled w
Slide 33: Risks & Mitigation
Risks & Mitigation
Slide 34: Key Risks and Mitigation
Key Risks and Mitigation Risk Mitigation Weakness in demand Financial distress has been forcing SEBs to opt for load shedding and thereby restrict demand from SEBs resulting in Approval for extension of Tripartite agreement accorded by GoI and RBI for 10/15 years with recourse to RBI lower PLFs
Slide 35: Key Risks and Mitigation
Key Risks and Mitigation Risk Mitigation Environmental clearances for all under construction projects received Environmental Laws Targeting 10 GW solar capacity in next 5 years and Regulations Implemented FGD at VSTPP, under implementation at Bongaigoan and NIT issued for various plants Stud
Slide 36: Sustainability Initiatives
Sustainability Initiatives
Slide 37: Technology Progression—Increased Efficiency and Greater Environmental Protection
Technology Progression—Increased Efficiency and Greater Environmental Protection Technologies Introduced Every 1% increase in Adoption of super critical parameters for higher efficiency in efficiency leads to 2.5% 46% 2004 CO2 reduction Adopted Ultra Super critical technology in 1320 MW Khargone
Slide 38: NETRA - Providing the Technology and R&D Edge
NETRA- PROVIDING THE TECHNOLOGY AND R&D EDGE Spent Rs. 114.38 crore on R&D activities during the year 2016-17 Technology Development-In house & Collaborative R&D for development of new processes, tools & systems. Focus Areas: Advanced Scientific Support through ISO Efficiency & Availability Impr
Slide 39: Committed to Comply with Environment Norms
Committed to Comply with Environment Norms Firm Action Plan to comply with New Environment Norms Finalized FGD Plan-NTPC 159 Units 64.93 GW No FGD Plan FGD being implemented/under tendering FGD Plan 25 units (15 NTPC+10 JV) 9 Units (6 NTPC + 3 JV) 125 Units 57.29 GW 2.39 GW 5.25 GW No FGD Plan FGD u
Slide 40: NTPC CSR Committed for Inclusive Growth
NTPC CSR Committed for Inclusive Growth Rs. 277.81 crore spent on CSR activities during the year 2016-17. Theme of 2016-17: Clean Water & Sanitation Provided clean drinking water facility at 59 villages around NTPC stations in 2016-17. Deepening of ponds, water harvesting projects, construction
Slide 41: Disclaimer
Disclaimer This presentation is issued by NTPC Limited (the “Company”) for general information purposes only and does not constitute any recommendation or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securit
Slide 42: Thank You
People,Power,Planet - In harmony THANK YOU