State-owned power giant NTPC is poised to make a significant financial move as its board prepares to consider a proposal to raise up to Rs 12,000 crore through bond issuance. The board of directors is set to convene on June 29 in New Delhi to deliberate on the issuance of “secured/unsecured, redeemable, taxable/tax-free, cumulative/non-cumulative, non-convertible debentures,” contingent on shareholder approval at the upcoming Annual General Meeting, as per a BSE filing.
Financial Performance and Growth
NTPC, one of India’s foremost power-generating companies, reported a total income of Rs 1,81,166 crore for the fiscal year 2024 (FY24), up from Rs 1,77,977 crore the previous year. The profit after tax (PAT) for FY24 stood at Rs 21,332 crore, marking a substantial 25% increase from the previous year’s PAT of Rs 17,121 crore.
Capital Expenditure Initiatives
The company has outlined ambitious capital expenditure plans, which were discussed in a recent analyst conference call. These plans encompass ongoing projects, new capacity additions, and environmental initiatives such as Flue Gas Desulphurisation (FGD) projects and renewable energy projects, including hydro-based ventures. In FY24, NTPC incurred a capital expenditure of Rs 34,943 crore, slightly lower than the Rs 35,204 crore spent in the previous year.
Strategic Funding for Expansion
The proposed bond issuance is aimed at supporting NTPC’s extensive capital expenditure programs. These funds will be crucial for advancing the company’s strategic initiatives, ensuring compliance with environmental regulations, and expanding its renewable energy portfolio. The diversification into green energy projects underscores NTPC’s commitment to sustainable growth and its role in India’s energy transition.
