NTPC Q2 Net Up 7.4%, Board Approves Shares Buyback

The gross generation of NTPC during the first half of the current fiscal was 127.86 billion units as against 130.14 billion units during the corresponding period of the previous year.

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NTPC Ltd, India's largest power generator on Monday, reported a 7.43% growth in its second-quarter net profits to Rs 3504.8 crore compared to Rs 3262.44 in the year-ago period, on account of exceptional gains of Rs 560.43 crore. The company's profit before tax grew 4.84% during the quarter to Rs 3,666.93 crore. On a half-year basis, the net profit stood at Rs 5,974.96 crore, while the profit before taxes was Rs 6,564.72 crore, said a company statement. NTPC's total income during the quarter grew 10% to Rs 26,023 crore. The gross generation of NTPC during the first half of the current fiscal was 127.86 billion units as against 130.14 billion units during the corresponding period of the previous year. NTPC Coal stations achieved a plant load factor (PLF) of 61.26% in the first half of the current fiscal as against the national average PLF of 49.58%. Board approves share buyback: State-owned power giant board approved the buyback of 19.78 crore equity shares for Rs 115 per share, amounting to Rs 2,275.74 crore as part of the capital restructuring. The company has fixed November 13, 2020, as the record date to ascertain shareholders' eligibility for buyback of equity shares. In October, NTPC got market watchdog SEBI's nod from certain buyback norms for the proposed merger of its wholly-owned subsidiaries with the parent company. The company had applied with the market regulator to seek exemption from the strict enforcement of the buyback norms. Last year, NTPC's board had approved a scheme of amalgamation entailing the merger of Nabinagar Power Generating Company Ltd (NPGCL) and Kanti Bijlee Utpadan Nigam Ltd (KBUNL) with NTPC. The government relies on the share buyback by selected public sector utilities to meet its disinvestment target of Rs 2.1 lakh crore for the current fiscal. The government may consider buybacks are Coal India, Kudremukh Iron Ore, RITES, NMDC, and Engineers India. New Funding: Last week, NTPC agreed to borrow 50 billion yen ($478 million) from Japanese banks to fund the installation of emissions-cutting equipment and green energy projects. "The loan proceeds will be utilized by NTPC Ltd, the PSU under Ministry of Power, for funding its Capex for Flue Gas Desulphurization (FGD) & Renewable Energy projects," government-run NTPC said in a statement. Japan Bank for International Co-operation (JBIC) will provide 60% of the loan under its Global Action for Reconciling Economic growth and Environment preservation (GREEN) initiative. Other Japanese commercial banks, including Sumitomo Mitsui Banking Corp, San-In Godo Bank Ltd, and Nanto Bank Ltd, will extend the rest of the loan amount. Ahead of the results announcements, NTPC shares on BSE closed up 1.88% at Rs 89.25 in a firm Mumbai market on Monday, valuing the company at Rs 88,308.9 crore.