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Time of India
27-05-2025
- Business
- Time of India
Buy NHPC, target price Rs 100: JM Financial
JM Financial has a Buy call on NHPC with a target price of Rs 100. The current market price of NHPC Ltd. is Rs 86.6 Time period given by analyst is a year when NHPC price can reach defined target. NHPC, incorporated in 1975, is a Large Cap company with a market cap of Rs 86357.16 crore, operating in the Power sector. NHPC's key products/revenue segments include Power, Other Operating Revenue, Lease & Other Income, Income from Finance Leases, Income from Project Development, Scrap and Contract Revenue for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 2672.41 crore, up 2.12% from last quarter Total Income of Rs 2616.89 crore and up 15.18% from last year same quarter Total Income of Rs 2320.18 crore. The company has reported net profit after tax of Rs 919.52 crore in the latest quarter. The company's top management includes Prasad Goyal, Goverthanan, Joseph, Prof. (Dr)Rashmi Sharma Rawal, Prof. (Dr)Amit Kansal, Sakharam Nirgudkar, Lal, Kumar Chaudhary, Kumar Singh, Afzal. Company has Chaturvedi & Co. as its auditors. As on 31-03-2025, the company has a total of 1,004 crore shares outstanding. Live Events Investment Rationale NHPC reported consolidated net revenue of Rs 23 billion (24% YoY, 22% JMFe,-29% Cons.). EBITDA stood at Rs 11 billion (-5% YoY, 14% JMFe, 10% Cons.). Adjusted PAT stood at Rs 8.5 billion (57% YoY, 94% JMFe, 66% Cons). Post adjusting the multiple one offs in 4QFY25 and 4QFY24, revenue/ EBITDA/ PAT for 4QFY25 stood at Rs 21 billion (-6% YoY)/ INR 9bn (-26% YoY)/ INR 4bn (0% YoY). With significant hydro capacity addition expected during FY26/FY27 (2,000MW Subansiri Lower, 120MW Rangit-IV, 624MW Kiru), the installed capacity with regulated return is set to grow from Rs 142 billon in FY25 to 292 billion by FY28. JM Financial maintains BUY on the sole large utility that boasts a 100% green energy portfolio, with a SOTP-based target price of Rs 100. Promoter/FII Holdings Promoters held 67.4 per cent stake in the company as of 31-Mar-2025, while FIIs owned 8.81 per cent, DIIs 10.6 per cent.
Business Upturn
21-05-2025
- Business
- Business Upturn
NHPC share price jumps 2% as Q4 net profit rises 52% to Rs 920 crore
By Aman Shukla Published on May 21, 2025, 09:15 IST Shares of NHPC Ltd rose over 2% in early trade following the announcement of its robust Q4 FY25 results. As of 9:15 AM, the shares were trading 2.52% higher at Rs 88.79. The state-run hydropower company reported a 52% year-on-year (YoY) jump in consolidated net profit at ₹919.63 crore for the quarter ended March 2025, compared to ₹605 crore in the same period last year. The sharp rise in profit was driven by higher total income, which increased to ₹2,672.11 crore in Q4 FY25 from ₹2,320.18 crore in Q4 FY24, as per the company's exchange filing. The positive earnings momentum has boosted investor sentiment, reflected in the upward movement of the stock. In addition, NHPC's board of directors has recommended a final dividend of ₹0.51 per equity share (face value ₹10) for the financial year 2024-25. This dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM). Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Mint
20-05-2025
- Business
- Mint
NHPC, NTPC, EIL yet to alter arbitration clause in contracts despite Centre's nudge
New Delhi: State-run companies NHPC Ltd, NTPC Ltd, and Engineers India Ltd (EIL) are yet to alter their contractual provisions related to arbitration, according to two people familiar with the matter. The finance ministry had advised all government entities last year to reduce their exposure to arbitration and attempt to resolve public procurement disputes using mediation or litigation instead. The department of expenditure, in its June 2024 advisory, had stated that arbitration was expensive and time-consuming compared to mediation and litigation. Major state-run firms shying away from arbitration may dampen the hopes of India's goal of becoming an arbitration hub, as the government is widely known as the biggest disputant in the country. Mint earlier reported that state-run firms Oil India Ltd and ONGC Ltd have reduced their exposure to arbitration, and the Delhi Public Works Department has said it will not arbitrate in future contracts. Arbitration vs mediation An arbitration clause is a commonly used dispute resolution clause. All contracts, agreements, and even treaties have dispute resolution clauses, which direct parties on how to resolve any issue. While arbitration is adversarial and binding on parties, mediation focuses on getting parties together to a singular consensus and is non-binding. 'While the finance ministry's guidelines rightly aim at curbing delays and inefficiencies in public procurement disputes, the de-emphasis on arbitration in favour of mediation and litigation merits caution," said Pragya Ohri, partner, HSA Advocates. "Mediation, inherently non-binding, lacks enforceability and often collapses in adversarial settings and when the stakes are high. This may result in an increased caseload for the already overburdened courts of the country," said Ohri. "Arbitration may not be flawless, but it remains preferable to the morass of prolonged litigation. Litigation, with the Government as the largest litigant, suffers notorious delays, often stretching into decades," Ohri at HSA Advocates added. Queries emailed to NHPC on 9 May, and NTPC and EIL on 17 May did not elicit a response till press time. NHPC contractor claims According to NHPC Ltd's FY24 annual report, the company benefited from the central government's 'Vivaad Se Vishwaas' scheme, where long-pending arbitrations were settled mutually by parties. Also, the state-run hydropower giant reduced the number of contractor claims against itself by settling matters in favour of the company. The company's contingent liabilities decreased by 9.62% year-on-year to ₹9,265 crore as of 31 March, 2024 "mainly due to contractors claim settled under the Vivad se Viswas II Scheme (contractual disputes) notified by the Government of India ( ₹676.32 crore) and reduction in contractors claims due to arbitration awards settled in favour of the company ( ₹755.85 crore)," NHPC's FY24 annual report said. Under the Vivad se Viswas II (contractual disputes) scheme, government entities can settle arbitral dues with contractors after an arbitral award or court judgement has been given, or when the dispute is being resolved. For court judgements passed before April 2023 and for arbitral awards passed before January 2023, government entities could settle the dispute by paying 85% and 65% of either the disputed amount or the amount stated by the adjudicating court or arbitral tribunal. Also Read: Supreme Court could reshape arbitration. Businesses are watching. NTPC, EIL arbitration expenses Meanwhile, India's largest thermal power generator NTPC Ltd has decreased its provisions for arbitral awards by a little over ₹625 crore in FY24, according to the company's annual report. In the same year, the power generator's income from arbitration cases has risen to about ₹143 crore compared to ₹33.92 crore the year before. Also, its expenses on arbitration cases have reduced to ₹125 crore in FY24 from ₹155 crore in FY23, according to the report. Commercial and employee-related claims against Engineers India Ltd have also reduced in FY24 to ₹229.75 crore from FY23's ₹262.55 crore, its annual report for FY24 said. EIL's FY24 annual report also dictated the facts of a case where a contractor claimed a hefty ₹400 crore from the company, and the company filed a counterclaim for about ₹120 crore. In this period, the contractor's creditor also filed an insolvency plea against the contractor. While the insolvency plea did not go through, it illustrated another example of how state-run firms challenges to arbitral awards impact private contractors. In a 2019 Supreme Court case of Hindustan Construction Company and others vs Union of India, contractors urged the court to ask public sector undertakings (PSUs) to comply with arbitral awards instead of challenging them as contractors were facing consistent insolvency scares from creditors. In July 2024, a Lok Sabha disclosure by the finance ministry said a study showed that over 60% of all arbitration awards involving NTPC Ltd and the National Highways Authority of India were challenged in court. "In all these cases, the government is compelled to spend on both arbitration as well as on litigation," minister of state for finance Pankaj Chaudhary told the Lok Sabha. Feasible mechanism The unchanged arbitration regimes of various state firms suggest that Indian arbitration remains the only feasible dispute resolution mechanism, especially for commercial disputes. India's arbitration regime, governed by the 1996 Arbitration and Conciliation Act, is at a tipping point. After being amended thrice before, the law is currently being amended for the fourth time in a massive push for institutional arbitration. Previous high-level committee reports by Supreme Court judge B.N. Srikrishna and former law secretary T.K. Viswanathan have suggested that widespread reforms are necessary for India to become an arbitration hub, and there is a need to focus on institutional arbitration over ad-hoc arbitration. Also Read: Law ministry to start work on plugging gaps in arbitration law, as directed by Supreme Court Ad-hoc arbitration refers to cases where parties appoint an arbitrator, who then decides the rules of procedure. In an institutional arbitration, however, the rules of procedure are set by the institution providing the arbitration facilities, making the process more streamlined. Implementing new dispute resolution guidelines can be time consuming and resource-sensitive, said Arush Khanna, partner at Numen Law Offices in New Delhi. "There is also the fact that the amendments to the arbitration act are imminent, which, once implemented, are likely to assuage the concerns and trust deficit that the government undertakings are having towards arbitration," he told Mint. 'The proposed amendments aim to make institutional arbitration the norm rather than the exception, which in spirit, aligns with the finance ministry guidelines, which also encourage institutional arbitration, albeit in a restrictive manner," he added.
Express Tribune
05-05-2025
- Politics
- Express Tribune
India takes first tangible step outside IWT
India has taken the first tangible step in violation of the Indus Waters Treaty (IWT) of 1960, as authorities began work to boost reservoir holding capacity at two hydroelectric projects in the Indian Illegally Occupied Jammu and Kashmir (IIOJK), sources have told Reuters. A "reservoir flushing" process to remove sediment began on Thursday, carried out by India's biggest hydropower company, the state-run NHPC Ltd, and the relevant authorities, the three sources said, adding that the work might not immediately threaten supply to Pakistan but it could in the long run. India suspended the IWT – that ensures supply to 80% of Pakistani farms – after the killing of 26 people in IIOJK' tourist resort of Pahalgam last month. Without giving any evidence, India blamed Pakistan for the attack, triggering heightened tensions between the two countries. Pakistan, which denied any role in the Pahalgam attack, has threatened international legal action over the suspension of the IWT and warned: "Any attempt to stop or divert the flow of water belonging to Pakistan ... will be considered as an act of war". According to the sources, India did not inform Pakistan about the work at the Salal and Baglihar projects, which was being done for the first time since the projects were built in 1987 and 2008-09, respectively, as the IWT had blocked such work, the sources said. The reservoir flushing process initially results in sediment-laden waters being released downstream from the reservoirs, potentially causing sudden inundation, followed by a reduced flow of water as the reservoirs are refilled, one of the sources said. They said that the work might not immediately threaten supply to Pakistan, but it could eventually be affected if other dams launch similar efforts. There are more than half a dozen such projects in the occupied region. The flushing operation ran for three days from May 1, one of the sources told Reuters. "We were also asked to open the adjustable gates for cleaning, which we did from May 1," the source said, adding that the effort aimed at freeing dam operations from any restrictions. "This is the first time such an exercise has taken place and will help in more efficient power generation and prevent damage to turbines," the source said. Locals, living on the banks of the Chenab River, also confirmed water had been released from both Salal and Baglihar dams from Thursday to Saturday. The flushing of hydropower projects requires nearly emptying a reservoir to force out sediment, the build-up of which is a major cause of declining output. "Flushing is not a common thing because it leads to a lot of water wastage," said one of the sources. Two of the sources said that power delivered by the 690-megawatt Salal project was far below its capacity, because Pakistan had prevented such flushing, while silt build-up also affected output at the 900-MW Baglihar project. "Downstream countries were expected to be informed in case it led to any inundation," the source said, as under the IWT, India had to share data such as hydrological flows at various spots on the rivers flowing through India and issue flood warnings. Government officials and experts on both sides say India cannot stop water flows immediately, however, as the IWT has allowed it only to build so-called run-of-river hydropower plants, which do not require significant storage dams, on the three rivers allocated to Pakistan. The IWT suspension means India "can now pursue our projects at free will", said Kushvinder Vohra, a recently retired head of India's Central Water Commission who worked extensively on Indus disputes with Pakistan.
Free Malaysia Today
05-05-2025
- Business
- Free Malaysia Today
India starts work on hydro projects after suspending treaty with Pakistan
India's water minister has vowed to 'ensure no drop of the Indus river's water reaches Pakistan'. (EPA Images pic) SRINAGAR : India has begun work to boost reservoir holding capacity at two hydroelectric projects in the Himalayan region of Kashmir, sources with knowledge of the matter told Reuters, after fresh tension with Pakistan led it to suspend a water-sharing pact. The work represents the first tangible step by India to operate outside agreements covered by the Indus Waters Treaty, unbroken since 1960 despite three wars and several other conflicts between the nuclear-armed rivals. Last month, however, New Delhi suspended the pact that ensures supply to 80% of Pakistani farms after an attack in Kashmir killed 26, and it identified two of the three assailants as Pakistani. Islamabad has threatened international legal action over the suspension and denied any role in the attack, warning, 'Any attempt to stop or divert the flow of water belonging to Pakistan … will be considered as an act of war'. 'A 'reservoir flushing' process to remove sediment began on Thursday, carried out by India's biggest hydropower company, state-run NHPC Ltd, and authorities in the federal territory of Jammu and Kashmir,' the three sources said. The work may not immediately threaten supply to Pakistan, which depends on rivers flowing through India for much of its irrigation and hydropower, but it could eventually be affected if other projects launch similar efforts. There are more than half a dozen such projects in the region. 'India did not inform Pakistan about the work at the Salal and Baglihar projects, which is being done for the first time since they were built in 1987 and 2008/09, respectively, as the treaty had blocked such work,' the sources added. They spoke on condition of anonymity as they were not authorised to talk to the media. India's NHPC and the neighbouring governments did not reply to emails from Reuters to seek comment. Since independence from British colonial rule in 1947, India and Pakistan have fought two of their three wars over Kashmir, in addition to numerous short conflicts. 'The flushing operation ran for three days from May 1,' the sources said. 'This is the first time such an exercise has taken place and will help in more efficient power generation and prevent damage to turbines,' one of the sources told Reuters. 'We were also asked to open the adjustable gates for cleaning, which we did from May 1,' the source said, adding that the effort aimed to free dam operation from any restrictions. People living on the banks of the Chenab river on the Indian side of Kashmir said they noticed water had been released from both Salal and Baglihar dams from Thursday to Saturday. 'Free will' The flushing of hydropower projects requires nearly emptying a reservoir to force out sediments whose build-up is a major cause of decline in output. For example, two of the sources said, power delivered by the 690-MW Salal project was far below its capacity, because Pakistan had prevented such flushing, while silting also hit output at the 900-MW Baglihar project. 'Flushing is not a common thing because it leads to a lot of water wastage,' said one of the sources. 'Downstream countries are expected to be informed in case it leads to any inundation,' sources said. Building both projects had required extensive back and forth with Pakistan, which worries about losing out on its share of water. Under the 1960 treaty, which split the Indus and its tributaries between the neighbours, India had also shared data such as hydrological flows at various spots on the rivers flowing through India and issued flood warnings. India's water minister has vowed to 'ensure no drop of the Indus river's water reaches Pakistan'. Government officials and experts on both sides say India cannot stop water flows immediately, however, as the treaty has allowed it only to build hydropower plants without significant storage dams on the three rivers allocated to Pakistan. The suspension means India 'can now pursue our projects at free will', said Kushvinder Vohra, a recently retired head of India's Central Water Commission who worked extensively on Indus disputes with Pakistan. Prime Minister Narendra Modi's government has sought to renegotiate the treaty in recent years and the archfoes have tried to settle some of their differences at the Permanent Court of Arbitration in the Hague. These concerns related to the size of the water storage area at the region's Kishenganga and Ratle hydroelectric plants.
