Release Date: May 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NHPC Ltd (BOM:533098, Financial) achieved a 7% increase in revenue from operations, reaching INR8,994 crores compared to the previous year.
- The company successfully commissioned all four units of the Parbati-II hydroelectric project, adding 800 megawatts to India's renewable energy portfolio.
- NHPC Ltd (BOM:533098) has made significant progress in its solar power initiatives, commissioning 107 megawatts out of a 300-megawatt solar power plant in Bikaner, Rajasthan.
- The Subansiri Lower hydroelectric project is nearing completion with 96% of the plant's construction finished, and the commissioning of five units is expected in the current financial year.
- NHPC Ltd (BOM:533098) is actively pursuing new projects, including hydroelectric projects in Nepal and several pumped storage projects across India, indicating a strong pipeline for future growth.
Negative Points
- The company's power generation decreased by 9% due to a complete shutdown of the Teesta-V Power Station caused by a flash flood.
- NHPC Ltd (BOM:533098) reported a 17% decline in profit after tax, amounting to INR3,084 crores compared to the previous year.
- The plant operability factor decreased to 73.94% from 77.60% in the previous year, primarily due to lower water availability and outages.
- The company faced a significant loss at the PBT level from the Teesta Basin projects, amounting to approximately INR400 crores.
- Trade receivables increased to INR4,412 crores as of March 31, 2025, compared to INR3,978 crores the previous year, indicating potential cash flow challenges.
Q & A Highlights
Q: Can you explain the decline in profitability from last year, particularly regarding any one-off items affecting the tax?
A: The decline in profitability is primarily due to a reversal of INR110 crores related to interest on arbitration, impacting the quarterly numbers. For the yearly numbers, a net impact of INR100 crores from pay anomalies and INR26 crores from interest on arbitration contributed to the decline. Additionally, there was a decrease of INR100 crores in energy charges.
Q: What are the revenue and profit numbers for NHDC for the fiscal year?
A: NHDC generated 5,575 million units in the current fiscal year, compared to 4,473 million units in the previous year. Revenue from operations was INR1,400 crores, up from INR1,270 crores, and PAT was INR837 crores, compared to INR812 crores.
Q: What is the expected incremental revenue from the recently commissioned Parbati-II project?
A: The design energy of Parbati-II is 3,074 million units, with an expected tariff of around INR7.5 to INR8. The approximate revenue, considering 87% saleable design energy at INR7.5, would be around INR2,000 crores.
Q: What is the expected commissioning timeline for the Subansiri project and its incremental revenue?
A: We plan to commission three units by June 2025 and the remaining five units by May 2026. The incremental revenue from this project is expected to be in the range of INR4,000 to INR4,500 crores annually once fully commissioned.
Q: Can you provide an update on the progress of the Dibang project and the remaining contract packages?
A: Out of seven contract packages for the Dibang project, five have been awarded, and work is progressing. The remaining two packages are under evaluation, and we expect to award them shortly.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
