NHPC Share Price

NHPC Ltd

National Hydroelectric Power Corporation Ltd, a MiniRatna Category I Enterprise, stands as one of the largest organisations in the field of hydroelectric power development in India. Established by the Government of India, NHPC is dedicated to the planning, development, and implementation of an integrated and efficient network of hydroelectric projects across the country. Over the years, NHPC has evolved into a key player in India's energy sector, contributing significantly to both hydro and renewable energy development.

History and Evolution

• Incorporation and Initial Years NHPC Ltd was incorporated on November 7, 1975, initially operating under the name National Hydro Electric Power Corporation Pvt Ltd. It was later converted into a public limited company on April 2, 1986. The company was primarily established to plan, promote, and organise the development of hydroelectric power in India. Over time, its objectives expanded to include the development of power through both conventional and non-conventional sources in India and abroad.

• Early Projects In 1976-77, NHPC received its first assignment — the Loktak hydroelectric project, with a capacity of 105 MW from the Government of India. The following year, the Baira Siul hydroelectric project, with a capacity of 180 MW, was entrusted to NHPC. Over the next few years, NHPC made significant strides, commissioning the Baira Siul power station in Himachal Pradesh (1982-83) and the Devighat power station in Nepal (1983-84).

• Expansion and Growth Throughout the 1980s and 1990s, NHPC expanded its operations extensively, setting up various power stations across India and even abroad. Notable developments during this period included the commissioning of the Chamera I power station (540 MW) in Himachal Pradesh and the Uri power station (480 MW) in Jammu & Kashmir.

• International Presence NHPC's international endeavours include the execution of the Kurichhu hydroelectric project (45 MW) in Bhutan and consultancy services for projects in neighbouring countries like Nepal and Myanmar. This marked the company's transition into a global player in the hydroelectric sector.

Major Projects and Achievements

Domestic Projects

NHPC has successfully commissioned several large-scale hydro projects across India. Some of the most notable include:

• Chamera I Power Station (540 MW) in Himachal Pradesh, commissioned in 1994.
• Teesta V Power Station (510 MW) in Sikkim, commissioned in 2007-08.
• Dul Hasti Hydroelectric Project (390 MW) in Jammu & Kashmir, commissioned in 2006-07.

International Ventures

NHPC has also expanded its footprint internationally, especially in neighbouring countries like Bhutan and Nepal. Some key international projects include:

• Kurichhu Hydroelectric Project (45 MW) in Bhutan, commissioned in 2000.
• Mangdechhu Hydroelectric Project (720 MW) in Bhutan, where NHPC provided consultancy services.
• Devighat Hydroelectric Project (14.1 MW) in Nepal, commissioned in 2023.

Renewable and non-Hydro Projects

NHPC has diversified its energy portfolio by venturing into renewable energy projects like solar and wind power. Some key renewable energy projects include:

• 50 MW Solar Power Project, commissioned in Uttar Pradesh in 2017.
• 50 MW Wind Power Project, commissioned in Rajasthan in 2016.

NHPC is also actively involved in setting up rooftop solar power systems at its various locations and has commissioned a 1 MW rooftop solar power plant at its Faridabad residential complex.

Financial Performance

Revenue Growth

• In FY 2023-24, NHPC Ltd reported a total revenue of ₹10,994 crore. This represents a slight decrease of approximately 2.58% compared to the previous fiscal year, FY 2022-23, where the revenue was ₹11,285 crore.

Net Profit

• NHPC's net profit for FY 2023-24 was ₹3,624 crore, which is a decrease of about 6.83% from the net profit of ₹3,890 crore recorded in FY 2022-23.

Earnings Per Share (EPS)

• The earnings per share (EPS) for NHPC in FY 2023-24 was ₹3.61, down from ₹3.87 in the previous fiscal year.

Comparison with Other Companies in the Sector

When compared to other major players in the Indian power sector, such as NTPC Ltd and Power Grid Corporation of India Ltd, NHPC stands out as a leader in the hydroelectric power segment. However, its diversification into solar and wind energy is not as extensive as NTPC's, which has a larger renewable energy portfolio.

• NTPC Ltd: NTPC is primarily focused on thermal and renewable energy, with a total installed capacity of over 65 GW. Although NTPC has a more diversified portfolio, NHPC remains the largest dedicated hydropower company.

• Power Grid Corporation: While Power Grid focuses on power transmission, NHPC is more involved in power generation, particularly in the hydro sector.

Stock Comparison

NHPC's stock performance has been stable over the years, with consistent returns to shareholders. In comparison:

• NTPC's stock tends to be more volatile due to its exposure to thermal power and higher operational risks.

• Power Grid Corporation's stock, being more reliant on transmission, offers lower growth potential but higher stability.

NHPC’s Role in India’s Energy Future

As India moves towards its goal of reducing carbon emissions and increasing the share of renewable energy in its energy mix, NHPC is poised to play a critical role. With the government's focus on achieving 500 GW of renewable energy capacity by 2030, NHPC's expertise in hydroelectric power and its push towards solar and wind energy projects position the company as a key player in the country's clean energy future.

Contribution to Renewable Energy

NHPC’s notable contributions in renewable energy include:

• Solar Projects: NHPC has commissioned several solar power projects, including a 50 MW solar plant in Uttar Pradesh and rooftop solar installations across its facilities.

• Wind Projects: The company commissioned its first wind power project in Rajasthan, with a capacity of 50 MW.

Future Projects

NHPC has several projects in the pipeline that will contribute to India’s renewable energy goals. These include:

• Ratle Hydroelectric Project (850 MW) in Jammu & Kashmir.
• Teesta VI Hydroelectric Project (500 MW) in Sikkim.
• Bundelkhand Solar Projects (320 MW) in Uttar Pradesh.

Outlook Overview

NHPC Ltd has emerged as a leader in the hydroelectric power sector, both in India and globally. With a strong financial background, government backing, and a focus on renewable energy, NHPC is well-positioned to continue its growth trajectory. As the company diversifies its energy portfolio and expands its renewable energy capacity, it will play a crucial role in shaping India’s sustainable energy future.

For investors looking at stable, long-term growth in the renewable energy sector, NHPC Ltd presents a compelling opportunity.