Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NHPC Ltd (BOM:533098, Financial) achieved significant progress in its ongoing projects, with 94% physical progress in the Swansea Lower project and 98% in the Poverty project.
- The company has successfully commissioned an 88 MW floating solar power project, showcasing its commitment to renewable energy.
- NHPC Ltd (BOM:533098) has secured a substantial investment plan of INR50,000 crore for renewable energy projects in Rajasthan.
- The company has maintained a strong regulated equity position, expected to more than double from INR13,000 crore to INR28,500 crore over the next four years.
- NHPC Ltd (BOM:533098) has received approval for laying transmission lines for a 300 MW solar project in Rajasthan, indicating progress in infrastructure development.
Negative Points
- NHPC Ltd (BOM:533098) experienced an 11% decrease in power generation due to flash floods and landslides affecting key power stations.
- The company's revenue from operations decreased by 2% compared to the previous year, primarily due to lower power generation.
- Profit after tax for the half-year was 23% lower than the corresponding period last year, impacted by reduced generation and increased expenses.
- The company faces under-recovery issues due to the shutdown of the Pisa high power station, with an estimated annual loss of INR450 crore.
- NHPC Ltd (BOM:533098) is experiencing delays in signing power purchase agreements for some renewable energy projects, potentially affecting future revenue streams.
Q & A Highlights
Q: What is the under-recovery for the hydro plant, and when will it begin operation?
A: Rajendra Goyal, Chief Financial Officer, explained that the Pisahigh power system has been down since October 2023 due to a landslide. The business interruption loss is insured for one year, ending September 2024. The total annual loss is around INR 450 crore, with INR 410 crore recoverable from insurance. The plant is expected to resume operations by December 2025.
Q: Is there an issue with signing power purchase agreements (PPAs) for renewable projects?
A: Rajendra Goyal stated that there is no issue with PPAs for hydro power systems as they are fully tied up. However, for solar or hybrid projects, some tenders face delays, but there is no risk as they are implemented in Renewable Energy (RE) mode.
Q: What is the expected regulated equity post-commissioning of projects in the next few years?
A: Rajendra Goyal mentioned that the current regulated equity is around INR 13,000 crore. By FY25, after commissioning of the Parbati-II project, it will increase to INR 16,500 crore. By FY28, with several projects coming online, it is expected to more than double to INR 28,500 crore.
Q: Can you provide details on secondary charges and incentives for the quarter compared to last year?
A: Rajendra Goyal reported that secondary energy charges for the current year are INR 3 crore compared to INR 6 crore last year. Deviation charges are INR 24 crore this year, up from INR 21 crore last year. The methodology for recognizing incentive income has changed, and PF incentives will be realized in the subsequent quarter.
Q: What is the status of EPC tenders for the Dibang and Subansiri projects?
A: Raj Chaudhary, Chairman and Managing Director, stated that five out of seven contract packages for the Dibang project have been awarded, with the remaining two in the tendering phase. For Subansiri, tenders for infrastructure and consultancy works are in progress, with the bid submission extended by three weeks.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
