Shares of NTPC Ltd have gained 25% from their lows in March, higher than the 21% rise in the Nifty index. Data for March shows a notable improvement in utilization at NTPC’s power plants.
Plant availability factor (PAF) improved to 94.4% in Q4, up from 91.7% in the year-ago period, shows data compiled by Emkay Global Financial Services Ltd.
The recovery reflects the improvement in fuel availability and supplies. Lack of sufficient fuel had impacted the company’s plants in earlier quarters, resulting in cost under-recovery and revenue loss.
With PAF now improving, incentive income will rise. But these are uncertain times. With covid-19 bringing unprecedented economic pain, many stakeholders are asking for relief.