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NTPC Ltd.

BSE: 532555 Sector: Infrastructure
NSE: NTPC ISIN Code: INE733E01010
BSE LIVE 15:53 | 18 Aug 173.30 -3.55
(-2.01%)
OPEN

177.95

HIGH

178.60

LOW

172.50

NSE 15:55 | 18 Aug 173.40 -3.40
(-1.92%)
OPEN

177.40

HIGH

178.65

LOW

172.65

OPEN 177.95
PREVIOUS CLOSE 176.85
VOLUME 1624470
52-Week high 179.00
52-Week low 143.45
P/E 14.01
Mkt Cap.(Rs cr) 142,894
Buy Price 0.00
Buy Qty 0.00
Sell Price 173.30
Sell Qty 1833.00
OPEN 177.95
CLOSE 176.85
VOLUME 1624470
52-Week high 179.00
52-Week low 143.45
P/E 14.01
Mkt Cap.(Rs cr) 142,894
Buy Price 0.00
Buy Qty 0.00
Sell Price 173.30
Sell Qty 1833.00

NTPC Ltd. (NTPC) - Chairman Speech

Company chairman speech

Dear Shareowners

You will be delighted to note that Financial Year 2015-16 turned out to be yet anotheryear of robust performance by your Company. Your company maintained its strong leadershipposition in the country. Facts and figures amply demonstrate your Company’s excellentperformance. With its strong overall performance your Company is expected to retain the"Excellent" rating for the MoU signed with the Government of India for FinancialYear 2015-16.

Your Company contributed to the growth of power sector by commissioning 2255 MW duringFinancial Year 2015-16 and added 1960 MW to its commercial capacity. With this theinstalled capacity of NTPC (including JVs and Subsidiaries) stood at 46653 MW and thecommercial capacity was 45428 MW as on 31.03.2016. Investment approval for 2360 MW newcapacities was accorded during Financial Year 2015-16. This includes 1600 MW coal basedcapacity and 760 MW of solar capacity. Your Company has over 24000 MW capacities underconstruction and it is committed to delivering these projects in time. Your Companyachieved an all-time high capex of Rs 25960 crore (standalone basis) exceeding the MoUtarget of Rs 23000 crore. This underlines the brisk pace of project delivery by yourCompany.

The coal based stations of your Company achieved a plant load factor (PLF) of 78.61% asagainst the all India PLF of 62.29%. Three stations recorded PLF of more than 90% whichis a commendable achievement even by international standards and were ranked the Top 3stations in the country. Eleven stations of NTPC Group figure amongst the top 25 stationsin the country. Very significantly your Company was able to activate its hydro portfolioby commissioning its first hydro project of 800 MW at Koldam. This is a major milestoneand provides the necessary diversification to the generation portfolio.

Government of India recently issued a policy allowing flexibility in use of coal. Thispolicy allows linkages given to the different power stations of your Company to beallocated in a single basket to the Company and allows full flexibility in utilizing coalfrom this single basket in the entire fleet of power stations in the most economical andefficient manner. Your Company is uniquely positioned to maximize the benefits arising outof this policy by utilizing coal in a manner which provides operational flexibility on theone hand and also reduces freight costs on the other. Rationalization of coal linkages andreduction in use of imported coal has led to reduction in fuel cost. During Financial Year2015-16 the total fuel bill of your Company came down to Rs 43793 crore as compared to Rs48834 crore in Financial Year 2014-15 a reduction of over Rs 5000 crore in spite ofgeneration remaining at similar levels. Apart from power project development and plantoperation your Company took an important step in building the third pillar of its growthstrategy by commencing coal mining operations from its first mine. Your company openedPakri Barwadih mine in May 2016 and removal of top soil and overburden has already begun.Mining of its own coal will provide further impetus to the operations of the Company.

Your Company has always focused on operational as well as commercial efficiency toensure that the Company remains financially strong in a sustainable manner. In pursuanceof this goal 100% realization of current bills has been made for the thirteenth year in arow. Further your Company is pursuing with the Government of India to extend theTripartite Agreements with the States to ensure the continuity of timely realization ofbills. Although power generation increased your Company’s total revenues forFinancial Year 2015-16 decreased to Rs 71696 crore from Rs 75337 crore in Financial Year2014-15 mainly on account of lower fuel costs. This clearly demonstrates the improvementin the operational performance of your Company. Your Company was able to maintain the netprofit at Rs 10243 crore as compared to Rs 10291 crore last year.

Your Company’s management has always believed in maximizing shareholders’wealth. The Company has already paid an interim dividend of Rs 1.60 per share and hasrecommended a final dividend of Rs 1.75 per share for 2015-16 subject to your approval.

Government of India divested 5% of equity share capital of the company by offer forsale through Stock Exchange mechanism in February 2016. It enabled the Government togarner Rs 5015 crore. Subsequently the Government allowed sale of 0.25% equity to theemployees. Through this offer Government earned Rs 203 crore. After these divestmentsthe holding of the Government in your Company stands at 69.74%.

During Financial Year 2015-16 your Company spent Rs 492 crore on CSR activities wellabove the mandated threshold of 2% of PAT which demonstrates its proactive approachtowards contributing to the society. Among the major initiatives undertaken was completionof about 29000 toilets as part of the Swachh Bharat – Swachh Vidyalaya Abhiyaan.Your Company’s achievements in various spheres have earned it a number of awards andaccolades. The Company has been awarded 1st Corporate Governance Excellence Award inlisted PSUs category for the year 2014-15 by ASSOCHAM. It has been ranked No.2 IndependentPower Producer and Energy Trader Globally in the Platts Top 250 Global Energy CompanyRankings 2015. It has also been ranked 4th among the Asian electric utilities in 2016rankings as per Forbes Global 2000. It was awarded with Dun & Bradstreet CorporateAwards 2016 for Best performing company in India in Power Sector. Your Company has beenadjudged as the "Best Company to work for" in Public Sector category in thestudy carried out by Great Place to Work and Economic Times. I assure you that Team NTPCshall continue to put its best efforts in sustaining the leadership position of yourCompany and thereby ensure sustained returns to its stakeholders.

With best wishes Yours sincerely

(GURDEEP SINGH) Chairman & Managing Director