Company Profile

NTPC Ltd is the largest power generating company in India

both in terms of installed capacity and generated output. The
company is engaged in the business of generation and sale of
bulk power. The company has two segments: generation and
other business. Their other business includes providing
consultancy, project management and supervision, oil and
gas exploration, and coal mining. The company contributed
28.6% of the total power generation of India. They were
ranked 317th in the '2009, Forbes Global 2000' ranking of
the World's biggest companies. The company operates their
stations at a level of efficiency that exceeds the average in
India, based upon availability factor and average plant load
factor (PLF). They have developed a long term technology
roadmap for the induction of high efficiency equipment,
including supercritical and ultra-supercritical machines at
their new plants. Their subsidiaries include NTPC Electric
Supply Company Ltd, NTPC Hydro Ltd, NTPC Vidyut
Vyapar Nigam Ltd, Pipavav Power Development Company
Ltd, Kanti Bijlee Utpadan Nigam Ltd and Bhartiya Rail
Bijlee Company Ltd. NTPC Ltd was incorporated on
November 7, 1975 as a private limited company with the
name National Thermal Power Corporation Pvt Ltd. In
September 30, 1976, the word 'Private' was deleted in the
company's name consequent upon the notification issued by
the GoI exempting government companies from the use of
word 'private' in their name. In September 1977, the
company acquired the first patch at Singrauli. In the year
1978, the company took over the management of Badarpur
project. Also, they commissioned the first 200MW unit at
Singrauli. In December 25, 1981, the fifth and last unit at
210 MW at Badapur Thermal Power Station was
synchronized by NTPC, making the completion of the 720
MW project. In the year 1982, the transmission line based on
High Voltage Direct Current (HVDC) technology was
commissioned for power transmission from Rihand to Delhi.
In March 1, 1983, the first 200 MW unit of Kobra Super
Thermal Power project was commissioned. In November
1983, they commissioned the first 200 MW unit at
Ramagudam. In September 30, 1985, the company was
converted from a private limited company into a public
limited company. In the year 1986, they became one of the
first PSUs to issue bonds in the debt market. In the year
1992, the company acquired Feroze Gandhi Unchahar
Thermal Power Station (2x210MW) from Uttar Pradesh
Rajya Vidyut Utpadan Nigam of Uttar Pradesh. Also, the
transmission systems owned by the company were
transferred to Power Grid Corporation of India Ltd pursuant
to legislation by the Parliament of India. In the year 1994, the
Jhanor-Gandhar thermal station in Gujarat commissioned an
integrated Liquid Waste Treatment Plant. In the year 1995,
the company was conferred with 'Navratna' status granted by
the GoI. In June 1995, the company took over the 460 MW
Talcher Thermal Power Station from Orissa State Electricity
Board. In the year 1998, they commissioned the first
Naphtha based plant at Kayamkulam with a capacity of 350
MW. In the year 2000, they commenced construction of their
first hydro-electric power project of 800 MW capacity in
Himachal Pradesh. In the year 2002, the company
incorporated three wholly owned subsidiaries, namely NTPC
Electric Supply Company Ltd, NTPC Hydro Ltd and NTPC
Vidyut Vyapar Nigam Ltd. They set up ESP (Electrostatic
precipitators) at Talcher power plant. In October 2004, the
company launched their initial public offering (IPO)
consisting of 5.25% as fresh issue and 5.25% as offer for sale
by Government of India. Thus, the company became a listed
company in November 2004 with the Government holding
89.5% of the equity share capital. In October 28, 2005, the
name of the company was changed from National Thermal
Power Corporation Ltd to NTPC Ltd to reflect the
diversification of their business operations beyond thermal
power generation to include, among others, generation of
power from hydro, nuclear and renewable energy sources
and undertaking coal mining and oil exploration activities. In
the year 2006, Badarpur Thermal Power Station having an
installed capacity of 705 MW was transferred to the
company. In the year 2008, the company signed an MoU
with Asian Development Bank, GE Energy Financial
Services, USA, Kyushu Electric Power Co Inc, Japan and
Brookfield Renewable Power Inc Canada for setting up a
joint venture company for undertaking renewable power
generation under public-private-partnership. In December
2008, they incorporated a joint venture company, namley
National Power Exchange Ltd with NHPC Ltd, PFC Ltd and
TCS Ltd to operate power exchange at national level. In the
year 2009, the company entered into an MoU with Nuclear
Power Corporation of India Ltd (NPCIL) for development of
nuclear power in India. The company acquired 44.6% paid-
up capital in Kerala and Transformers and Electricals Kerala
Ltd from Government of Kerala at a total consideration
of Rs. 313.4 million. The company signed a long term fuel
supply agreement with Coal India Ltd for supply of coal to
NTPC Power Stations for a period of 20 years. During the
year, the company formed a joint venture company, namely
Energy Efficient Services Ltd formed amongst NTPC Ltd,
Power Finance Corporation Ltd, Powergrid Corporation of
India Ltd and Rural Electrification Ltd to carry on and
promote the business of Energy Efficiency and climate
change including manufacture and supply of energy
efficiency services and products. Also, they signed a joint
venture agreement with Coal India Ltd for incorporation of a
company with equal equity participation for development of
Brahmini & Chichro Patsimal coal mine blocks. During the
year, the company in association with NHPC Ltd, Power
Grid Corporation of India Ltd and Damodar Valley
Corporation incorporated a joint venture company, namely
National High Power Test Laboratory Pvt Ltd for setting up
an On-line High Power Test Laboratory for short-circuit test
facility in the country. Also, the company in association with
Steel Authority of India, Coal India Ltd, Rashtriya Ispat
Nigam Ltd and NMDC Ltd incorporated a joint venture
company, namely International Coal Ventures Pvt Ltd. In the
year 2010, the company entered into a joint venture
agreement with Nuclear Power Corporation of India Ltd for
formation of a public limited company to set up nuclear
power project with two nuclear reactor units which may be
extended for setting-up additional nuclear power projects
subject to techno-economic viability. They setup a
monitoring centre to give fillip to their large capacity
additional programme. Also, They commissioned the coal
base unit 5 National Capital Thermal Power Project, Dadri
located in Uttar Pradesh With the commissioning of this unit,
the total installed capacity of the company crossed 31000
MW and became 31134 MW. The President of India acting
through Ministry of Power, Government of India divested the
stake by 5% in the company through further public offer of
412,273,220 equity shares and the shareholding of
Government of India reduced from 89.5% to 84.5% with
effect from February 18, 2010. In May 19, 2010, the
company was granted the coveted status of 'Maha Ratna' by
the Govt. of India. Also, the company was the official power
partner of Delhi 2010 Commonwealth Games. In April 2010,
the company entered into joint venture agreement with Coal
India Ltd and formed a company, namely CIL NTPC Urja
Pvt Ltd to carry on the business of acquisition of green field
or operational Coal/ Lignite mine blocks in India and abroad
and development of all kinds of Coal/ lignite mining for
supply of fuels. In August 2010, they signed an MoU with
Bangladesh Power Development Board (BPDB) on mutual
co-operation between the parties for development of Power
Sector in Bangladesh. During the year 2010-11, the company
added capacity of 2,490 MW (including 500 MW through
JV) which is the highest ever in a year since its inception.
After commissioning of one unit of 660 MW at Sipat in June
2011, the company became a 34,854 MW company
(including 3,364 MW thorugh JV). During the year, the
company signed power purchase agreements (PPAs) for
49,000 MW capacity. Unit 6 of Dadri, Unit 1 of
Muzaffarpur, Unit 1 of Jhajjar and Unit 7 of Korba were
declared commercial during the year adding 1600 MW to
commercial capacity of the company. In October 2010, the
company executed a memorandum of understanding with
Government of Punjab and Punjab State Power Corporation
Ltd for setting up 2640 MW (4x660MW) coal based Thermal
Power Project at Gidarbaha in the State of Punjab. They
executed an MoU with Govt of Madhya Pradesh and MP
Power Trading Company (MP Tradeco) for setting up 3,960
MW (6x660 MW) Coal Based Thermal Power Project near
Chhatarpur in Madhya Pradesh for the benefit of
Bundelkhand region. In October 2010, the company executed
an MoU with Ministry of Railways for setting up a 1,320
MW (2x660 MW) Coal Based Thermal Power Project at
Adra in West Bengal through a joint venture company. In
January 2011, the company incorporated a joint venture
company, namely Anushakti Vidhyut Nigam Ltd with
Nuclear Power Corporation of India Ltd for the purpose of
development of nuclear power projects in the country. As of
March 31, 2011, the company had installed capacity in India
was 173626.4 mega-watts. As of March 31, 2011, the
company had 67892 mega-watts of installed capacity has
been accessed from small, mini and micro hydel schemes. As
of March 31, 2011, the company had five subsidiaries: NTPC
Electric Supply Company Ltd, NTPC Vidyut Vyapar Nigam
Ltd, NTPC Hydro Ltd, Kanti Bijlee Utpadan Nigam Ltd and
Bhartiya Rail Bijlee Company Ltd. In July 18, 2011, the
company signed an MOU with Government of Kerala with
the objective to plan and develop around 200 MW Wind
Energy based Power Projects in the State of Kerala in
association with Government of Kerala, on Build, Own &
Operate (BOO) basis using technology subject to
establishment of techno-commercial viability. Out of total
200 MW, first 80MW wind energy projects will be
developed on fast track basis at Ramakkalmadu by NTPC. In
September 6, 2011, the company nd Ceylon Electricity
Board (CEB), Sri Lanka signed the joint venture Agreement
on in Colombo for setting up a 500 MW (2 X 250 MW) coal
based power station at Sampur, Trincomalee in the Eastern
Province of Sri Lanka. A joint venture company would be
incorporated in Sri Lanka, with equal equity (50:50)
contributions by NTPC and CEB, for implementation of the
power project. In October 14, 2011, the company
incorporated a joint venture company amongst NTPC Ltd.
(NTPC), Asian Development Bank (ADB) and Kyuden
International Corporation, a wholly owned subsidiary of
Kyushu Electric Power Company Inc (Kyushu) under the
name Pan-Asian Renewables Private Ltd.NTPC, ADB and
Kyushu shall initially contribute in the ratio of 50:25:25 In
the equity share capital of the Company. The Company has
been incorporated to develop renewable energy projects and
initially establish over a period of three years a portfolio of
about 500 MW of Renewable Power Generation resources in
India. In January 29, 2012, the company signed a joint
venture agreement with Bangladesh Power Development
Board (BPDP) with the objective of setting up and
implementing 1320 MW coal based power plant(s) in
Bangladesh to cater to the growing power requirements of
Bangladesh. This project will be developed through a 50:50
joint venture company between NTPC Ltd and BPDP on
Build, Own and Operate basis. The company is also setting
up small and medium sized hydro projects through its wholly
owned subsidiary NTPC Hydro Ltd.

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Peer Comparison
Compa
ny
Market
Cap
(Rs. in
Cr.)
P/E
(TT
M)
(x)
P/BV
(TT
M)
(x)
EV/EBID
TA
(x)
RO
E
(%)
ROC
E
(%)
D/
E
(x)
NTPC
125,825.
72
11.47 1.47 7.23 16.4 13.7
0.7
1
Power
Grid
Corpn
71,489.6
8
15.89 2.07 10.02 17.0 9.0
2.4
5
Relianc
e Power
29,439.8
4
0.00 1.75 34.51 0.5 0.6
0.0
6
NHPC
Ltd
28,506.9
8
29.26 1.08 8.23 8.7 7.5
0.6
7
Tata
Power
Co.
28,081.0
4
29.41 2.40 11.85 8.5 10.3
0.7
5
Relianc
e Infra.
19,286.3
7
12.15 0.95 5.82 8.9 7.9
0.5
5
Adani
Power
17,332.0
4
29.15 2.23 26.85 0.0 0.0
5.0
9
Neyveli
Lignite
16,374.4
5
10.35 1.18 4.25 11.7 13.7
0.2
9
JSW
Energy
12,800.5
9
14.62 1.83 6.27 17.0 16.4
0.8
3
SJVN
10,051.9
9
9.03 1.11 4.51 13.0 11.2
0.2
4
CESC 8,122.97 12.21 1.35 4.14 12.0 10.5
0.6
5
Torrent
Power
7,296.99 76.84 1.18 7.24 6.5 9.4
0.7
3
JP
Power
Ven.
6,478.29
315.0
0
1.02 13.93 5.5 6.3
2.7
6
KSK
Energy
Ven.
4,179.91
421.6
7
1.39 18.86 0.3 3.7
0.3
4
Indiabul
ls
Power
3,620.82 0.00 0.68 0.00 0.0 0.0
0.4
5