NHPC generates highest-ever profit in fiscal year 2020-21

NHPC, the state-owned hydropower company, reported an almost 80% increase in its consolidated net profit for the March 2021 quarter to 464.6 crores, up from 258.83 crores in the March 31, 2020 quarter. The overall income was 2,094.3 crore, down from 2,382.36 crores the previous year.

External Commercial Borrowings (ECB)

On Thursday, June 10, 2021, the NHPC board of directors approved a proposal to raise debt up to Rs 4,300 crore during the fiscal year 2021-22 by issuing secured, redeemable, taxable, non-cumulative, non-convertible taxable corporate bonds in one or more tranches on a private placement basis and/or raising Term Loans-I External Commercial Borrowings (ECB) in suitable tranches.

NHPC's consolidated net profit increased 7.09 percent to Rs 3,582.13 crore in FY 2021 over FY 2020, despite a 3.59 percent drop in income from operations to Rs 9,647.89 crore.

In Q4 FY21, profit before tax increased by 51.55 percent to Rs 560.29 crore, compared to Rs 369.70 crore in Q4 FY20.

NHPC Company Details
Price: 26.95
Market Cap: 27.02TCr
P/E ratio: 9.21
Div yield: 5.23%

The board of directors also suggested a final dividend on the company's paid-up share capital of 3.50 percent of a face value of Rs 10 per share (Re 0.35 per equity share) year 2020-21.

The government of India owned 70.95 percent of the corporation as of March 31, 2021. NHPC follows the Government of India's statutory dividend policy (the higher of 5% of net worth or 30% of PAT), which will remain at >Rs1.5/sh p.a. in the future.

This is in addition to the Rs 1.25 per equity share interim dividend for 2020-21, which was paid in March 2021. If a final dividend is announced, it will be paid within the statutory timeframe established by the Companies Act of 2013.