Posted on February 19, 2025, by Niftynews
Shares of NTPC, India’s largest integrated power utility, rose nearly 1% on February 19, 2025, after the company announced an additional ₹2,424 crore interim dividend for its shareholders. This increase in stock price reflects positive market sentiment, driven by the company’s solid financial performance and its commitment to rewarding investors with consistent dividend payouts.
Additional ₹2,424 Crore Interim Dividend Announcement
NTPC declared an additional ₹2,424 crore interim dividend for the fiscal year ending March 2025. This comes on top of a similar interim dividend of ₹2,424 crore paid in November 2024, bringing the total interim dividend for the year to ₹4,848 crore. The total payout constitutes 25% of the company’s paid-up equity share capital.
Together with other dividends, the total FY2025 payout has now reached ₹8,000 crore. This marks the 32nd consecutive year of dividend payments, demonstrating NTPC strong commitment to providing shareholder value. The decision to pay this additional dividend reflects the company’s ability to generate consistent profits, allowing it to reward its investors.
Impressive Q3 FY2024-25 Financial Results
The financial performance for the third quarter of FY2024-25 showed continued growth for NTPC. The company’s revenue increased by 4.8% year-on-year (YoY), reaching ₹41,352.3 crore, up from ₹39,455 crore in the same quarter of the previous year. This growth was driven by strong performance in the core power generation business.
In terms of profitability, NTPC reported a net profit of ₹4,711.4 crore for Q3 FY2024-25. Additionally, the company achieved a significant 20.3% YoY increase in EBITDA, reaching ₹11,960.6 crore. This improvement was accompanied by a higher NTPC EBITDA margin, which rose to 28.9%, up from 25.2% in Q3 FY2023. These figures reflect the company’s operational efficiency and cost-effectiveness in its power generation business.
Renewable Energy Focus and Capacity Expansion
NTPC has been aggressively expanding its capacity to meet India’s growing energy demands. With an installed capacity of over 77 GW and an additional 29.5 GW under construction, the company is working to ensure a stable power supply for the country’s increasing needs.
A significant part of NTPC growth strategy lies in renewable energy. The company has 9.6 GW of renewable energy capacity under development and is aiming to achieve 60 GW of renewable capacity by 2032. This aligns with India’s broader goals to reduce carbon emissions and transition to cleaner energy sources.
Additionally, NTPC is investing in emerging technologies, such as battery storage, e-mobility, and green hydrogen solutions. These initiatives will help diversify its revenue streams and position the company for long-term growth in the rapidly evolving energy landscape.
Sustained Market Confidence
Despite challenges faced by the power sector, NTPC continues to show resilience and growth. With a current market capitalization of ₹3.7 lakh crore, the company remains one of India’s most reliable energy providers. The company’s focus on renewable energy, capacity expansion, and profitability has helped maintain strong investor confidence.
NTPC market outlook remains positive, and its focus on clean energy and sustainability will continue to drive future growth. For investors, the company’s stable financial performance and consistent dividend payouts make it a reliable long-term investment.
Conclusion
The recent 1% increase in NTPC share price following the announcement of its additional interim dividend highlights investor confidence in the company. With a solid financial track record, an expanding renewable energy portfolio, and a strong commitment to sustainability, NTPC is poised to remain a key player in the Indian energy sector.
As NTPC continues to focus on capacity expansion and investing in emerging technologies, it is well-positioned for long-term success. Investors looking for stable returns in the power and energy sectors should keep an eye on the company’s ongoing developments.
