NTPC Ltd

NSE:NTPC

Earnings Call Analysis

NTPC's Strong Operational and Financial Performance

NTPC reported a 5% increase in profit after tax for FY '24, totaling INR 18,079 crores, and a group profit increase of 25%, reaching INR 21,332 crores. Operational highlights include a 6% rise in generation to 422 billion units and a 48% boost in captive coal production. NTPC's renewable energy projects are progressing, with a significant increase in renewable capacity planned. The company is also advancing in green hydrogen and biomass co-firing projects. Guided capital expenditure for FY '25 is INR 22,700 crores, with a target of 6,780 megawatts new capacity. A final dividend of INR 3.25 per share has been recommended.

Operational Performance

NTPC exhibited robust operational performance throughout the fiscal year 2023-2024. The company notably added 3,924 megawatts of commercial capacity, increasing its total commercial capacity to 75,958 megawatts for the group, with 59,078 megawatts on a standalone basis. A significant highlight was the generation boost, with the group producing 422 billion units, up 6% from the previous year's 399 billion units. Standalone generation rose by about 5% from 344 billion units to 362 billion units. The average plant load factor at NTPC coal stations stood at 77.25%, outstripping the national average of 69.49%.

Financial Performance

Financially, NTPC reported a total income of INR 1,65,707 crores, marginally lower than the previous year's INR 1,67,724 crores. However, it achieved a higher profit after tax (PAT) of INR 18,079 crores, a 5% increase from INR 17,197 crores. On a group level, the total income was INR 1,81,166 crores compared to INR 1,77,977 crores last year, while the group PAT rose significantly by 25%, from INR 17,121 crores to INR 21,332 crores.

Dividend and Earnings

NTPC announced a final dividend of INR 3.25 per share pending shareholder approval. The interim dividends paid earlier in the fiscal year amounted to INR 4.50 per share, bringing the total dividend to INR 7.75 per share, up from INR 7.25 per share last year. The adjusted PAT for the fourth quarter was INR 5,107 crores, reflecting a 6% increase compared to the previous year. For the full fiscal year, the adjusted PAT stood at INR 16,405 crores, marking a 2% rise from the prior year ［file-1S6Jq69WNXYrsn2yDvcXoOBg］.

Fuel Supply and Production

Fuel supply remained strong, with total coal supply reaching 241.21 million metric tons, including 9.57 MMT of imported coal, compared to the previous year's 223.85 MMT, which included 14.56 MMT of imported coal. Notably, NTPC's captive coal production surged by 48%, from 23.20 MMT to 34.39 MMT, underscoring the company's enhanced self-sufficiency in fuel supply.

Expansion and Future Plans

Looking ahead, NTPC has ambitious plans to expand its portfolio, including the development of 22.5 gigawatts of capacity over the next three years. For the fiscal year '25, the company expects to add 6,780 megawatts, comprising 2,780 megawatts from thermal, 1,000 megawatts from hydro, and 3,000 megawatts from renewable sources. There's a roadmap to commission 6,460 megawatts in FY '26 and 9,244 megawatts in FY '27. The focus on renewable energy persists, with an aim to commission 3 gigawatts in the coming fiscal year alone.

Joint Ventures and Subsidiaries

NTPC's joint ventures and subsidiaries performed exceptionally well, contributing significantly to the company's overall financial health. The profit from subsidiaries increased by INR 2,430 crores, from INR 1,466 crores to INR 3,897 crores. Joint ventures saw a profit rise of INR 856 crores, from INR 780 crores to INR 1,636 crores. However, dividend income from these entities decreased from INR 2,336 crores to INR 1,631 crores, attributed to retained earnings aimed at funding various projects in the hydro and renewable sectors.

Capital Expenditure and Fund Mobilization

NTPC's capital work in progress decreased from INR 61,744 crores to INR 47,154 crores. At the group level, CWIP was INR 87,596 crores. The company secured a syndicated unsecured term loan equivalent to USD 750 million under the Reserve Bank of India's ECB regulation to fund ongoing and new capacity additions, including environmental projects. Additionally, an unsecured loan under JBIC's green initiative was acquired to support SDG projects, signifying NTPC's commitment to sustainable growth.

Renewable Energy Initiatives

NTPC continues to push towards expanding its renewable energy footprint. The company has signed several MOUs to explore green hydrogen production, green ammonia, and various other sustainable solutions. The renewable energy projects under construction include 3.6 gigawatts of commissioned projects and 8.4 gigawatts under various stages of execution. NTPC aims to capitalize on the increasing demand for sustainable energy solutions, reflecting a strategic shift toward more environmentally-friendly projects.

Recognition and Awards

NTPC has been the recipient of several prestigious awards, affirming its commitment to excellence and sustainability. The company won the ATD BEST Awards 2024 for the seventh time, highlighting its success in talent development. Additionally, NTPC was certified as a top employer in India and received accolades for its corporate social responsibility initiatives. These recognitions underscore NTPC's leadership in sustainability, people management, and overall corporate governance.

Earnings Call Transcript 2024-Q4

[Operator]

Ladies and gentlemen, good day, and welcome to the NTPC Q4 FY '24 Conference Call, hosted by Nuvama Wealth Management. [Operator Instructions]

I now hand the conference over to Mr. Subhadip from Nuvama. Thank you, and over to you, sir.

[Subhadip Mitra, analyst]

Thank you. Good evening, friends. On behalf of Nuvama Institutional Equities, welcoming you all to the fourth quarter FY '24 results call of NTPC. We have with us today the top management of NTPC, represented by Mr. Jaikumar Srinivasan, Director of Finance; Mr. Shivam Srivastava, Director of Fuel; Mr. K. Shanmugha Sundaram, Director of Projects; Mr. Ravindra Kumar, Director, Operations.

I would now hand over the call to Mr. Srinivasan for his opening comments. Over to you, sir.

[Jaikumar Srinivasan, executive]

Thank you so much. A very good evening to all the participants. I Jaikumar Srinivasan, Director of Finance. Welcome you all to the Q4 FY '24 Earnings Conference Call of NTPC Limited. I have with me Shri Shivam Srivastava, Director Fuel; Shri K. Shanmugha Sundaram, Director of Projects; and Shri Ravindra Kumar, Director of Operations. I also have with me other key members of the NTPC team.

Today, the company has announced audited financial results for the financial year 23-'24 along with the financial results for Q4 FY '24. Keeping up with the expectations of our stakeholders, NTPC has again recorded multiple progress in its operational and financial performance. The key highlights of our performance in FY '24 are as follows.

First, I'll share with you the operational highlights. During FY '24, NTPC Group has added 3,924 megawatt of commercial capacity to its portfolio. As on 31st March '24, the commercial capacity of NTPC stands at 59,078 megawatt on stand-alone basis and 75,958 megawatt for the group as a whole. NTPC Group generated 422 billion units in FY '24 as compared to 399 billion units in FY '23, an increase by around 6%. The stand-alone gross generation in FY '24 was 362 billion units, which is an increase of around 5% over the previous year gross generation of 344 billion units.

During FY '24, average plant load factor of NTPC coal station was 77.25% as against the national average of 69.49%, a spread of around 8%. For FY '24, 4 coal stations of NTPC, which is Korba, Singrauli, Vindhyachal and Rihand were among the 10 performing stations in the country in terms of the plant load factor. During FY '24, there has been an improvement in scheduling by the beneficiaries, thereby reducing the backing down some 91.86 billion units in FY '23 to 86.39 billion units.

I'll share with you the status of the fuel supply. Total coal supply during FY '24 was 241.21 million metric tons, including 9.57 MMT of imported coal as against 223.85 MMT, in the previous year, which included 14.56 MMT of imported coal. There has been an increase of around 48% in the NTPC's captive coal production from 23.20 million metric tons in FY '23 to 34.39 MMT in financial year '24.

Now I'll update on various other financial highlights. Total income of NTPC for FY '24 is INR 1,65,707 crores as against the previous year's total of INR 1,67,724 crores. Profit after tax for FY '24 is INR 18,079 crores as against INR 17,197 crores in previous year, registering an increase of 5%. Total income of the group for financial year '24 is INR 1,81,166 crores as against the previous year total income of INR 1,77,977 crores.

Profit after tax of the group for FY '24 is INR 21,332 crores as against previous year PAT of INR 17,121 crores, registering an increase of almost 25%. During FY '24, our share of accounted profits in our joint ventures and subsidiaries is INR 5,533 crores as compared to INR 2,246 crores in the previous year. This steep increase indicates the healthy performance of our investments in these ventures, which have contributed to the company's overall financial performance.

During FY '24, we have received dividend income of INR 1,630 crores from our subsidiaries and joint ventures as against INR 2,336 crores received during FY '23. For FY '24, the Board has recommended final dividend at the rate of INR 3.25 per share, subject to the approval of shareholders in the ensuing Annual General Meeting.

As you are aware, the interim dividends for financial year '24 INR 4.50 per share has already been paid to the investors in the month of November '23 and February '24. The total dividend for FY '24 was INR 7.75 per share as compared to INR 7.25 per share in the previous year.

Stand-alone regulated equity as on 31/3/2024 was INR 87,713 crores as against INR 77,628 crores as on 31st March 2023, an increase of 13%, while consolidated regulated equity as on 31st March '24 was 1,04,331 crores as against INR 94,180 crores as on 31st March 2023, an increase of 11%.

The gross property plant equipment of NTPC stood at INR 2,98,418 crores as on 31st March 2024. And on group level, gross PPE has increased by INR 35,260 crores to INR 3,73,696 crores.

Capital work in progress of NTPC stood at INR 47,154 crores as on 31st March 2024, as compared to INR 61,744 crores as on 31 March 2023. At the group level, CWIP stood at INR 87,596 crores as on 31st March 2024 compared to INR 89,133 crores as on 31st March 2023.

Overall this indicates a better efforts in conversion of investment into completed assets.

As regards fund mobilization, a syndicated unsecured term loan of euro equivalent to USD 750 million was executed under the automatic route of the Reserve Bank of India's external commercial borrowing regulation. Proceeds of the loan shall be utilized towards capital expenditure for ongoing and our new capacity addition program, including fuel gas desulfurization projects. Renewable energy, including hydro-based projects and refinancing of existing PCBs rupee loans avail for CapEx in the past.

Another unsecured loan from JPY 15 billion under JBIC's green initiative in India was executed under the automatic route of RBI's ECB regulation. The loan proceeds shall be utilized by NTPC for funding its CapEx requirement for SDG projects. Rate of interest on borrowings in FY '24 was 6.67%, as compared to 6.4% in FY '23.

In financial year '24, we have incurred a group CapEx of INR 34,943 crores as compared to INR 35,204 crores in the previous year. Stand-alone CapEx in FY '24 was INR 19,319 crores as compared to INR 24,597 crores in the previous year.

Cumulative expenditure of INR 10,733 crores have been incurred on the development of coal mines till 31st March 2024. On a stand-alone basis, capital outlay has been estimated at INR 22,700 crores for the financial year '25.

As regards the commercial front, a robust payment security mechanism has proven highly effective in managing credit receivables and ensuring timely and reliable payments from customers, resulting in highest ever realization of more than INR 1.56 lakh crores during financial year '24. Trade receivables, excluding unbilled revenue and bill discounting as on 31st March 2024 are equivalent to 31 days of sales in comparison to 36 days of sales as on 31st March 2023.

The NTPC Group is deeply committed to advancing renewable energy initiatives. As of now, we have successfully commissioned 3.6 gigawatts of renewable energy projects. Currently an additional 8.4 gigawatt of renewable energy projects are in various stages of constructions. Moreover, we have 11.2 gigawatts of renewable energy projects under tendering process. Further 6.6 gigawatt equivalent to land and connectivity tenders are under process and a substantial 4.8 gigawatt equivalent land bank is at our disposal already.

As part of our overall energy security plans, we are actively considering awarding thermal capacity of 15.2 gigawatts in the near future. This is in addition to 9.6 gigawatt thermal capacity already under construction for the group. Furthermore, to have greater fuel security, we are enhancing our coal mining capacity as well, and expect to reach annual production of 50 million tons in the next 3 years.

Going higher on generation, lowering greenhouse gas intensity remains our motto for environmental management and drives our efforts to comply with new environmental norms. For ensuring a substantial reduction in SOx emission, 66.8 gigawatt capacity of FGD projects have been undertaking, out of which 8.9-gigawatt is already commissioned.

NTPC successfully conducted first-ever biomass pellet auction through a digital marketplace selected through a start-up India brand innovative challenge for the consistent supply of biomass pellet for co-firing in power plants and resulted in a significant stellar response. NTPC has achieved a new milestone by successfully and safely demonstrating co-firing of 20% torrefied biomass in Unit 4 Stage 1 of NTPC standup plant on 30th March, 2024. The initiative is the first of its kind in India, Indian power sector, which may go a long way in decarbonization -- decarbonizing the existing coal-fired fleet and achieving the Net Zero emission targets.

Amongst the several memorandum of understanding signed by NTPC and its subsidiaries, a few are being highlighted here. NTPC Green Energy Limited, NGEL has signed MOUs with Gujarat State Petroleum Corporation; and Gujarat Pipavav Port Limited. The MOU with GSPC focuses on blending green hydrogen into its gas network and establishing green hydrogen fueling stations in Gujarat. The MOU with GPPL aims to develop a green hydrogen ecosystem, including producing green ammonia on GPPL land for export and domestic markets. Additionally, it seeks to explore Pipavav Port as a base for offshore wind farm operations in Gujarat.

An MOU was signed with Numaligarh Refinery Limited to explore opportunities in proposed bamboo-based Bio-Refinery at NTPC Bongaigaon and other Green projects. The collaboration keeps to expand presence in green chemicals and sustainable solutions to support the nation's net-zero targets.

MOU on cooperation in the power sector between NTPC and Nepal Electricity Authority, NEA, was signed during 7th Indo-Nepal Joint Commission meeting. Under this MOU, both NTPC and NEA shall jointly work on identification and finalization of power projects. NGEL signed an MOU with government of Maharashtra to develop up to 1 million metric tons per year of green hydrogen and it's derivatives. 2 gigawatt of pump hydro projects and up to 5 gigawatts of renewable projects with or without storage. This MOU part of Maharashtra's green investment plan for the next 5 years envision a potential investment of approximately INR 80,000 crores.

Green Valley Renewable Energy Limited, a subsidiary of NTPC Green Energy Limited, signed power purchase agreement with Damodar Valley Corporation for 310 solar projects, floating plus ground mounted. GVREL is developing 705-megawatt floating SPV and 50-megawatt ground-mounted SPV at reservoirs of DVC in the state of Jharkhand and West Bengal.

NTPC and Rajasthan Rajya Vidyut Utpadan Nigam, RVUNL, signed an MoU [indiscernible] for capacity expansions, opportunities and collaborate for performance improvement in existing Chhabra. MoU also aims to explore the possibilities of annuity-based R&M of other units of RVUNL.

As regards to awards and accolades, NTPC Limited has been named a winner at the ATD BEST Awards 2024. This is the seventh time that NTPC has been declared a winner of this award that recognizes organizations that have achieved enterprise-wide success via talent development. NTPC Limited has been certified as a top employer in India by the Top Employers Institute. The certification showcases NTPC's dedication to its People before PLF approach, progressive HR policies and people practice.

NTPC has been confirmed with prestigious Sportstar Ace Award 2024 in the category of Best PSU for promotion of Sports for contributing significantly to archery sports in the country. NTPC has been conferred with Excellence in Corporate Social Responsibility award in the prestigious 18 CII-ITC Sustainability Awards 2023. With the trust of our shareholders having placed in the company, we now have the largest market capitalization among nonfinancial PSU companies.

These were some of the key highlights I wanted to share with all the participants in this earnings conference call before we begin the question-and-answer session. Thank you all for your participation.

[Subhadip Mitra, analyst]

Thanks a lot, sir, for the detailed comments. It is also my pleasure to inform everyone on the call that Mr. Jaikumar Srinivasan, Director of Finance, NTPC, has been conferred with the Best CFO award under Excellence in Corporate Governance for Large Enterprises by the Economic Times. The award was presented to him for his outstanding contribution in the field of corporate governance by exemplifying innovation and adopting best corporate governance practices. Many congratulations, sir.

Right. Sir, should we begin the Q&A session now?

[Jaikumar Srinivasan, executive]

Yes.

[Subhadip Mitra, analyst]

Perfect. So Sagar, can you please open the queue for the Q&A?

[Operator]

[Operator Instructions] Our first question is from the line of Mohit Kumar from ICICI Securities Limited.

[Mohit Kumar, analyst]

Good evening, sir. Sir, the first question is on the thermal power plant. I think you mentioned 15.2 gigawatts -- which you are looking to award in your near future. Can you give us a year-wise tentative plan for this capacity generating power of fiscal year wise?

[Jaikumar Srinivasan, executive]

Yes. You were not very audible, but I could still gather. Let me answer this thing. The coal capacity planned for tendering during financial year '24-'25 would be around 10,400 megawatts. That is 10.4 gigawatts. So this would follow in different quarters, Q2, Q3, Q4. This includes Sipat 3 800 megawatts, Darlipali 2 800 megawatts; Meja 2 2,400 megawatts; NPGCL 2 2,400 megawatts; and Telangana 2 INR 2,400 megawatts; Gadarwara 1,600 megawatts. So that totals to 10,400 megawatts during the year '24-'25.

During the year '25-'26, it would be Anpara 1,600 megawatts, Obra 1,600 megawatts. So totaling to 3,200 megawatts. And for the year '26-'27, it will be Patratu 2 which would be 1,600 megawatts. This adds up to 15,200 megawatts. And this does not include 1,600 megawatt of Singrauli 3, already awarded to BHEL during Q3 of financial '23-'24. And this would be implemented both by NTPC on a stand-alone and JV subsidiary taken together. The rough would be -- 53% would be stand-alone, and 47% would be through JV and subsidiary.

[Mohit Kumar, analyst]

Understood, sir. My second question is on the under recovery. What was the under recovery in the full fiscal on the stand-alone basis and consol basis? And what is the outlook for the under recovery?

[Jaikumar Srinivasan, executive]

Under recovery, as in the disinvestment because of lower declaration?

[Mohit Kumar, analyst]

This is the [indiscernible].

[Jaikumar Srinivasan, executive]

Yes. In the -- for the whole year, it was INR 776 crores. And for Q4, it was INR 36 crores. This significantly -- the major part of this chunk of this is coming from 2 power plants, one is Barh and one is Barauni. Barauni, which was a very vintage plant, this has been decommissioned. So this problem will not remain. And the problem with Barh has been significantly arrested because of tube leakages. So going ahead, we don't see -- so apart from these 2 units, the disincentive was close to INR 150 crores only. And this has been significantly due to the requirement of high and low-demand season regulation, which has now been discontinued. So this compartmentalization of low demand and high demand season and -- which was a predecided thing, whereas the actual realities were different, system demands were different. We're creating this. But through a policy and advocacy, we have been able to discontinue that with persuasion. And so these problems will not continue. So we are hopeful that in the coming years, this incentive would be either brought to the minimum level.

[Mohit Kumar, analyst]

Understood. My last question, is it possible to give the revenues EBITDA and profit for the NTPC renewals subsidiary for FY '24?

[Jaikumar Srinivasan, executive]

EBITDA of NGEL is INR 1,820 crores. The PAT for financial year '24 was INR 343 crores.

[Operator]

Next question is from the line of Sumit Kishore from Axis Capital.

[Sumit Kishore, analyst]

My first question is related to the renewable pipeline projects. So in auctions, which were concluded in FY '24, what was NTPC's win across wind, solar, hybrid, [ BRE ], basically all RE auctions. And yes, that is the first question.

[Jaikumar Srinivasan, executive]

You want to know exactly how much is the bid 1 during the financial year?

[Sumit Kishore, analyst]

Yes, please. Across categories, if you can spell out -- and in your opinion, what was the total quantum of auctions in FY '24. So just want to gauge how NTPC has set?

[Jaikumar Srinivasan, executive]

So that figure is more than 5 gigawatt. I don't have the breakup -- but we can share the breakup with you. But the aggregate of what the CEO of NGEL is sharing with me is it is 5-gigawatt.

[Sumit Kishore, analyst]

Aggregate 5 gigawatt [ 1 ]. And so what is the sort of -- in the past 1 quarter, only about 0.2 gigawatt renewable was commissioned. While on the third quarter conference call, you expected out about 1 gigawatt could get commissioned in the fourth quarter. So just want to understand here, what are the execution impediments? And now what is the RE capacity likely to be commissioned in FY '25, '26 and '27?

[Jaikumar Srinivasan, executive]

There are primarily 2 reasons which led to the situation. One was the delay in the increment of modules because we got a late clearance from the government to import the modules from the countries outside India. And the second was there are some delays on the land acquisition front. So both have been now largely addressed. The modules are already at our sites. We have been able to procure 1.5 gigawatt, and they have been already at site by March. So this capacity should progressively come in the first half of this year. The total capacity addition which we target for this year is about 3 gigawatt.

[Sumit Kishore, analyst]

Sorry, 3 0?

[Jaikumar Srinivasan, executive]

3 gigawatts of capacity we target to commission in this particular year -- financial year. The next financial year, we will commission over 5 gigawatts. And subsequent to that, 8 gigawatts.

[Sumit Kishore, analyst]

Okay. Could you also provide an update regarding your medium-term plans for green hydrogen, pumped storage hydro and nuclear? So we're looking at maybe the next 5 to 10 years, what is NTPC thinking about the scale of investments and what quantifiable sort of targets have been outlined in your vision plan?

[Unknown Executive]

Well, we have got one PSP order from Tamil Nadu [indiscernible] 1,000 megawatt. We are in the preparing the DPR, the DPR [indiscernible] and the construction will be after 2 plus 5 years. Then we are expecting more DSP orders from Chhattisgarh, Himachal Pradesh, Karnataka, Gujarat, Maharashtra and Meghalaya to -- we are holding to our target, relay target of 10 gigawatts in PSP. Coming to nuclear. The joint venture with NPCL has moved up. It is expected to get the cabinet clearance maybe by next month end. And we are -- it is likely that Mahi Banswara project, Rajasthan shall be alloted to this joint venture. We are in 4 x 700-megawatt capacity there. This project is expected to achieve its SPC plus [ foreign ] contract in the financial year '26 and expected to be commissioned by 2032.

[Sumit Kishore, analyst]

Okay. And on green hydrogen?

[Jaikumar Srinivasan, executive]

On Green hydrogen, we are running various pilot projects as on date. We have a few projects on the mobility side. And one of the projects is at late where we are planning to run 5 projects -- by the time frame of July '24. And the another e-mobility project is at Delhi where also we are planning to run 5 buses by December '24.

In addition to that, we have signed an agreement with the Army for establishment of microgrid based on green hydrogen. And that project is already awarded and underway. We are also establishing a hydrogen hub at Pudimadaka. And as far as other pilot projects are concerned, we have tied up, as we mentioned in the call with Gujarat Pipavav for export of ammonia. So as the offtake gets crystallized, I think we plan to will emerge on what's the quantum of this market.

[Sumit Kishore, analyst]

One bookkeeping question. If I may, the dividend from subsidiaries and JVs, if you can mention for FY '24? And what -- how has it grown? And similarly, what is the profit from subsidiaries and JVs in FY '24? And how has it grown year-on-year?

[Jaikumar Srinivasan, executive]

The profit from JV and subsidiary is, first of all, I tell the subsidiary. Subsidiaries, the profit -- the profit has grown INR 2,430 crores which was earlier INR 1,466 crores. Current year, it is INR 3,897 crores. So increased by INR 2,430 crores, as far as subsidiaries is concerned. The share of profit of JV has grown -- increased by INR 856 crores. That is some INR 780 crores to INR 1,636 crores. So as far as the dividend is concerned, the dividend from JVs and subsidiaries, subsidiary is INR 905 crores. And as far as joint venture, it is INR 726 crores, which totals to INR 1,630 crores. Last year, it was INR 2,336 crores.

[Sumit Kishore, analyst]

Why has there been a reduction?

[Jaikumar Srinivasan, executive]

Reduction in the sense that although there is a profit, there are some retained earnings in order to flow back in various projects on the hydro renewable side.

[Operator]

The next question is from the line of Subhadip from Nuvama.

[Subhadip Mitra, analyst]

Just wanted to check if you can help us with the adjusted PAT number for the fourth quarter and for full year FY '24.

[Jaikumar Srinivasan, executive]

Okay. As you know, the reported PAT is INR 5,556 crores for the Q4. The adjusted PAT is INR 5,107 crores, which is a 6% raise over the previous year. As far as the full financial year is concerned, as against INR 1,632 crores during the last year, the adjusted PAT would be [ INR 16,405 ] crores, an increase by 2%. But there is one thing I would like to share just as a perspective that while we are trying to give you the figures of adjusted PAT, always, while reporting the current year, there is this set of disadvantage because we are effectively discounting or deducting the previous year sales. In a regulatory mechanism, always there is a deferred realization due to the regulatory process. So it has been our experience that every year on an average around INR 1,600 crores to INR 1,700 crores is the revenue that is received pertaining to past years.

By the same standard. The current year's revenue which is rightfully due in the current year, we may be getting in a year or a couple of years later. So that has been the average. So we should keep that in mind also because only deducting this amount will not give a complete picture. That was the thing I wanted to volunteer.

[Subhadip Mitra, analyst]

Understood, sir. Sir, also just clarifying on a point that I think the regulated equity has gone up by 11% and 13%, on stand-alone and I think on a consol basis. So is there also a lead lag effect that is there because maybe some of the regulated equity addition has happened in the middle of the year, and hence, you might see a higher growth coming into next year?

[Jaikumar Srinivasan, executive]

Absolutely. So typically, if you see the regulated equity, we start reckoning once the plant achieves a COD. But however, while the denominator is increased suddenly, the full year effect of the earnings will not be there. So the complete effect of this capitalization and the incremental equity -- regulated equity benefit will be shown in the next -- seen in the next year.

[Subhadip Mitra, analyst]

Perfect, sir. And sir, lastly, with regard to the renewable portfolio, I understand that we had talked about a 20 gigawatt plus portfolio with PPA signed and around 50% of that being corporate PPAs. Have those same numbers gone up over the last few months? Are we seeing a higher PPA signed number or any color on that?

[Jaikumar Srinivasan, executive]

More or less, it is at the same. There can be some differential numbers. But broadly speaking, it is the same. We have given you an account previously also. That right now, we have 23 gigawatt, which is in the visible with 3.6 gigawatt commission, 8.4 gigawatt under execution with PP available, construction contracts awarded. And roughly 11 gigawatt is in pipeline where we have either won the bid or LOA has been received, PPA signed or the JVA signed, term sheets signed or else consent is received. So this is clearly visible. And it's a -- to be precise, it adds 10.57 gigawatts. So the breakup, if you want, I can give. LOA PPA available is 4.08 gigawatt.

We have on one LOA is awaited for SECI Tranche-XIV solar thing around 0.2 gigawatt. For JVA term sheets signed are under advanced discussion stage, it is 5.49 gigawatt and consent received for close to 0.8 gigawatt. So that adds 10.57 gigawatt. So of this total 22 gigawatt that is under execution and in pipeline, it adds up to around 22 gigawatt, solar would constitute 16 gigawatt, wind will constitute 6 and a remaining form would be 0.2 gigawatt.

[Operator]

The next question is from the line of Dhruv Muchhal from HDFC Asset Management Company.

[Dhruv Muchhal, analyst]

The government is seeking gas-based plants to run and giving an allowance of 1.2x gas costs. I believe we have this Ratnagiri plant where -- which I think is not under PPA. So do we stand to gain there? And are there any other gas plants that will also probably benefit out of the scheme?

[Jaikumar Srinivasan, executive]

Primarily the RGPPL plant, which you mentioned is under PPA. It is not out of PPA. It is -- the PPA is there with predominantly Maharashtra and a small portion with Goa, Diu, Daman, so that's point number one. But yes, as per the directives, it is being continuously being declared and depending on the schedule that we are receiving, we are generating to that extent.

[Dhruv Muchhal, analyst]

So all plants have PPA. So from a merchant basis, it does not benefit?

[Jaikumar Srinivasan, executive]

No, as far as RGPPL, we do have some plants in NTPC where it is at present, which was -- which are 25-year-plus plants, where the customers have voluntarily relinquished it at some certain point in time. And these are the plants where we are selling it under a various segment of the market or as per the system requirements of the grid operator, and trying to optimize the revenue there.

[Dhruv Muchhal, analyst]

So sir, on stand-alone, how much capacity would be without PPA? I believe that would be largely gas. So how much would it be without PPA?

[Jaikumar Srinivasan, executive]

908 gigawatt for the [indiscernible] -- another 900-megawatt as far as gas is concerned. And a little portion of -- I mean a little portion of thermal was relinquished, but it has since be reallocated to somebody. So right now, you can treat it as 908 megawatt.

[Operator]

The next question is from the line of Girish from Morgan Stanley.

[Girish Achhipalia, analyst]

I may have missed this. So can you help us with the commissioning outlook for the coal based plants for fiscal '25 and fiscal '26? And if you can help us me the plant names?

[Jaikumar Srinivasan, executive]

Yes. This was shared already, but I'll repeat for your sake. On a -- the COD expected during the financial year '25 is 2,178 megawatt, and as far as the -- on a stand-alone basis, and for JV subsidiary, it is 4,602 megawatt. So on a group basis, we are expecting 6,780 megawatts during the coal-based plants win for financial year '25. And this would be -- thermal 2,780 megawatts, hydro would be 1,000 megawatts and renewable 3,000 megawatts. So that accounts for 6,780 megawatts.

For financial year '26, this would be 6,460 megawatts. The breakup being 1,460 megawatts thermal and 5,000 megawatts renewable. And for financial year '27, we are expecting 9,244 megawatts with the breakup of thermal 800 megawatts, hydro 444 megawatts and renewable 8,000 megawatts. So over the next 3 years, that aggregates to 22.5 gigawatts.

[Girish Achhipalia, analyst]

And sir, just in terms of consolidated CapEx, you mentioned stand-alone CapEx of INR 22,700 crores. Can you articulate for '26 stand-alone and consol CapEx and for fiscal '25 consol CapEx?

[Jaikumar Srinivasan, executive]

See, going forward, we are expecting INR 35,000 crores to INR 50,000 crores per annum in the next 2, 3 years. And just to give you an idea for '23, '24, the stand-alone CapEx was INR 19,319 crores. At a group level, it was INR 35,000 crores. So the figure I mentioned, INR 35,000 crores to INR 50,000 crores per annum was on a group level.

[Girish Achhipalia, analyst]

Sure. So this includes all types of CapEx around coal mining as well as renewable as well as FGD as well as everything.

[Jaikumar Srinivasan, executive]

Yes. Entire gamut of our operation.

[Girish Achhipalia, analyst]

Just another point, sir, other income, if you can help us with fiscal '24 translate in surcharge income and others...

[Jaikumar Srinivasan, executive]

As far as surcharge is concerned, for Q4, it was INR 118 crores. And for the total year, it is INR 303 crores. As far as the surcharge is concerned, that occupies a significant portion of the other income. But evidently, as we have shared with you in the past that with the more robust collection mechanism, security mechanism and the surcharge is incidental. And if it goes down, it's a mark of better collection efficiency.

[Girish Achhipalia, analyst]

Absolutely. Sir, just final one on subsidiary and joint venture profit. I know you've highlighted the delta. Is it possible to just call out which are the key subsidiaries, which are driving this delta and joint ventures is like which are the key joint ventures which are leading to the increase?

[Jaikumar Srinivasan, executive]

See the significant upside as far as subsidiary is concerned, would be BRBCL, which from INR 248 crores, it has gone to INR 517 crores. RGPPL is another one where there is a significant variation. And NTPC Green Energy Limited has doubled its profit, an increase by INR 169 crores. NITCO, again, it has gone up from INR 396 crores to INR 548 crores and these are upside. And there are marginal reduction in NVVN and THDC. All put together, it's an upside of INR 2,430 crores, as far as subsidiary is concerned.

Coming to joint venture, it's all of our major joint ventures have done significantly well. HURL, Hindustan Urvarak & Rasayan Limited, the profit is up by INR 411 crores. BIFPCL, the Bangladesh plant after achieving COD of both the units, the profit is up by INR 309 crores. Meja, the other joint venture with the UP is up by INR 131 crores. Aravali Power is up by INR 125 crores. And EESL, the differential is INR 39 crores -- INR 83 crores rather.

[Girish Achhipalia, analyst]

The last question on monetization of renewable. Can you comment on anything around time lines expected and how the process will be based on whatever you can share at this stage?

[Jaikumar Srinivasan, executive]

As far as the monetization, we are going ahead with the IPO plans. This would be tentatively around October or November. That's the broad plan. So post June, it will be DRHP activities of filing and other due diligence process would take shape.

[Girish Achhipalia, analyst]

And sir, can you -- can you comment on whether this will be like an exact split of the current entity or NTPC will be the holding company? Any call-out on the structure as to how the IPO will pan out.

[Jaikumar Srinivasan, executive]

No. NTPC would, of course, be the holding company. NGL would remain a subsidiary of NTPC, even post IPO. There's no...

[Girish Achhipalia, analyst]

So what I meant was that, will the existing shareholders exactly get the same proportion of shares in the new entity? I mean given because there are 2 ways of doing it, right? So I just wanted to check.

[Unknown Executive]

Nature of a fresh issue.

[Operator]

The next question is from the line of Atul Tiwari from Citi.

[Atul Tiwari, analyst]

Sir, could you just mention the standalone regulated equity again, I just missed that.

[Jaikumar Srinivasan, executive]

Regulated equity?

[Atul Tiwari, analyst]

Yes, for the stand-alone entity, this year and the last year.

[Jaikumar Srinivasan, executive]

Stand-alone, the regulated equity is INR 87,713 crores, which is grown up by nearly INR 10,000 crores. It is -- it was [indiscernible] last year.

[Operator]

The next question is from the line of Nikhil Nigania from Bernstein.

[Nikhil Nigania, analyst]

My question is on the renewable listing plans. In the earlier discussions, it was brought up that you want the business to be a certain size before it is listed. But given that the renewable commissioning has been slowed due to the reasons mentioned earlier, land and module availability. Just wanted to understand why -- if you could share why the rush to list it so soon in October, November? Why not wait for some time? And wouldn't equity funding become a challenge once it's separated from the parent, for the big pipeline?

[Jaikumar Srinivasan, executive]

No, we don't think that it would be any kind of a rush because we are going as per our plan and our conviction. And -- there is immense value capturing, which we foresee. And given the visibility of almost 22 gigawatts, which I was sharing with you and the plans for going ahead and reaching a 60 gigawatt by financial year '32. So we are of the view that the market is quite conducive. And there is a buoyancy -- investors are a bit as regard investment opportunity in the green area. So we are of the view that it will be quite time honored to do that -- go ahead with that.

Coming to the support of NTPC, depending on our investment plans and expansion plans, the equity requirement would be taken care primarily through follow-on public issue, which, in any case, we are mandated to reach 25% progressively. And besides that, in case of need, of course, the holding company will stand behind to support any kind of supplementing the equity requirement.

[Nikhil Nigania, analyst]

Got it. My second question is on the renewables again. So module prices are down significantly. Last year, the tender tariffs went up as well. So wanted to get a sense of the equity IRRs one can expect in upcoming renewable project. Any uptick do you see on that compared to the earlier guidance given of around 12% equity add up for renewable projects?

[Jaikumar Srinivasan, executive]

No, these are -- the equity IRR is something -- it would be a strategy which is internal to the company because predominantly, we are going through the bidding route. So however, broadly, the indications which we gave you about -- given the level of competition and given the level of expected IRR -- so it would much remain the same. However, as I mentioned that we will have a blend of both auction route as well as for forging joint venture with other PSUs and tapping the C&I segment.

So we hope to see that -- so the other advantage in the renewables is the lower gestation period. So that would also help to bring us an IRR, which is comparable with our existing line of business in thermal where you have a bigger -- although you have a regulator return close to 15.5% because of the larger gestation period. We are trying to see that our strategy matches to the expectations in line with our existing business.

[Nikhil Nigania, analyst]

Got it, sir. My last third question is on the thermal side. Just wanted some clarification, the 15 gigawatt to be ordered on the thermal side. The PPA for that, if you could just shed some color, it's all in place or how much is made.

[Jaikumar Srinivasan, executive]

PPA is predominantly available for us, how many would that be? Mr. Dua, would you like to give a number of how many of the PPAs signed and how many is waiting?

[Ajay Dua, executive]

We've got PPAs for Sipat 3, 800 megawatts, Darlipali 2 is again 800 megawatt, Meja 2 2,400 megawatt; that PPA is also available. And Nabinagar 2 2,400 megawatt, where PPAs for 2 x 660 are available. We have to sign for 3 included in order to increase capacity.

[Jaikumar Srinivasan, executive]

So in short, out of 15,000 megawatts broadly, 8,000 megawatts is tie-up is available and 7,000 megawatts we would -- we'll be taking up for higher tier. There's ample demand. As you know that PPA and allocation to different states also comes under the domain of the ministry. So we are in discussion with the states as well as the ministry to tie it up for [ meet up ].

[Operator]

The next question is from the line of [ Shashi Ranjan from Batch Four ].

[Unknown Analyst]

Am I audible?

[Jaikumar Srinivasan, executive]

The voice is not clear. You are audible, but there's a lack of clarity. Can you...

[Unknown Analyst]

Okay. I'll try to be more clear. Can you just help us that for the CapEx, there is a 70-30 debt equity that we're planning. And in view of the interest that we are incurring is [ 6.67% ] rate of interest. Any measures to cut down the gearing ratio for [indiscernible] verification of the company or investing those money into green technologies like battery energy and storage?

[Jaikumar Srinivasan, executive]

Are you -- I mean, are you suggesting that -- are we rethinking on the debt equity in the existing business, is that your question?

[Unknown Analyst]

I mean trying to improve the debt to equity ratio and whatever we say, [indiscernible] battery energy.

[Jaikumar Srinivasan, executive]

Let me try and answer that as far as our thermal business is concerned, it is -- it has been and it will remain a cost plus, which is a regulated -- where there is a regulated equity. And in order to optimize over there, so there is a clear stipulation, normative stipulation of 70-30. So we would definitely be trying to invest optimally over there, up to 30%.

And as far as the renewable business is concerned, while this will again depend on in tune with the segment which we are trying to get the business whether it is a bidding route or whether it is some kind of a hybrid cost plus through a memorandum of understanding with other entities. So again, there, in order to do a higher gearing, the auction route would be the one where we would do a higher gearing in order to be competitive in the bidding process. Whereas it's a negotiated deal, we'll try to see that the equity component is more so that you have assured return on equity.

[Unknown Analyst]

That helps. The last question is that are we planning towards any newer technologies like....

[Operator]

Sorry to interrupt. Mr. Ranjan, your voice is breaking up again.

[Jaikumar Srinivasan, executive]

You are not very clear and audible, please?

[Unknown Analyst]

Are we moving towards newer technologies like battery energy storage system or small modular reactor with collaboration with NPCIL?

[Jaikumar Srinivasan, executive]

Absolutely. We have plans on the nuclear side in terms of newer technology, be it in terms of SMR or -- you have BWHR also. So these are at a more exploratory stage. Director Project, would you like to add anything further?

[K. Sundaram, executive]

We are planning to forward in SMR predominantly in integral pipe. And of course, [indiscernible] uranium fuel, then in MVR. And coming to battery storage also we are working on this.

[Operator]

Ladies and gentlemen, we would take that as our last question for today. I would now like to hand the conference over to Mr. Subhadip for closing comments.

[Subhadip Mitra, analyst]

Thank you, sir. I would like to thank the management of NTPC for giving us this opportunity to host the call. Any closing remarks from your side, sir?

[Jaikumar Srinivasan, executive]

Thank you so much for that good level of participation and all these questions were very informed and pertinent. So it was a pleasure interacting with you and sharing our plans, numbers with you. Thank you so much, Subhadip, and all the participants.

[Subhadip Mitra, analyst]

Thank you.

[Operator]

Thank you. On behalf of Nuvama Wealth Management, that concludes this conference. Thank you for joining us. You may now disconnect your lines.