NTPC Green Energy IPO: Key Financial Insights Before Subscription

NTPC Green Energy IPO, one of the upcoming IPOs in India, filed its DRHP in September 2024 and is expected to open for subscription soon. As a subsidiary of NTPC Limited, a ‘Maharatna’ central public sector enterprise, the company aims for listing on the exchanges. It is important to understand the company’s financials to better understand its growth potential and performance in the renewable energy sector. 

NTPC Green Energy Financial Performance

Revenue Breakdown: Solar and Wind Energy Sales Performance

The revenue from operations for the three-month period ending June 30, 2024, in the consolidated financial information stands at ₹5,784.42 million, with renewable energy sales contributing significantly. 

In the renewable energy sector, solar energy sales accounted for ₹5,301.03 million, or 91.65% of total renewable energy sales. Wind energy sales contributed ₹279.62 million, representing 4.83% of the renewable energy sales for the period. The total renewable energy sales for the period amounted to ₹5,580.65 million, which is 96.48% of the total revenue from operations. 

In comparison, for FY 2024, the total revenue from operations was ₹19,625.98 million, with renewable energy sales totalling ₹18,874.56 million, accounting for 96.17% of the total revenue. 

Within renewable energy sales, solar energy contributed ₹18,403.54 million, or 93.77%, while wind energy brought in ₹471.02 million, making up 2.40% of the renewable sales. 

For FY 2023, the renewable energy sales were ₹14,053.11 million, comprising 96.94% of the total revenue, with solar energy sales at ₹13,651.81 million (94.17%) and wind energy sales at ₹401.30 million (2.77%). 

In FY 2022, the total revenue from operations stood at ₹9,104.21 million, with renewable energy sales of ₹8,848.36 million, accounting for 97.19% of the total revenue. Of this, solar energy sales were ₹8,447.56 million (92.79%), and wind energy sales amounted to ₹400.80 million (4.40%).

About NTPC Green Energy Limited

NTPC Green Energy is the largest renewable energy public sector enterprise (excluding hydro) in terms of both operating capacity and power generation as of June 30, 2024. The company has a diverse renewable energy portfolio that includes solar and wind power assets spread across more than six states. As of August 31, 2024, NTPC Green Energy had an operational capacity of 3,071 MW of solar power projects and 100 MW of wind projects.

For its operational projects, NTPC Green Energy has secured long-term Power Purchase Agreements (PPAs) or Letters of Award (LoAs) with government agencies such as the Solar Energy Corporation of India (SECI), state government bodies, or public utilities. As of June 30, 2024, NTPC Green Energy’s total portfolio included 14,696 MW, with 2,925 MW from operational projects and 11,771 MW from contracted and awarded projects.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.