NHPC Surges 8% as Interim Dividend Announcement Boosts Investor Confidence

13 Feb 2024 , 12:19 PM

NHPC shares witnessed an 8% surge on February 13 following the company’s announcement of an interim dividend of ₹1.4 per share for the financial year 2023-24. In the past month, NHPC’s stock has recorded a remarkable 24% increase, outperforming the benchmark Sensex, which saw a decline during the same period.

The company reported a 14% decline in consolidated revenue and a 26% drop in profit year-on-year for the December quarter. This was attributed to damage and business loss caused by flash floods in the river Teesta.

NHPC’s earnings impact was accentuated by additional expenses of ₹34 Crore, partially offset by potential insurance claims of ₹30 Crore.

NHPC is engaged in projects with a cumulative capacity of 18.7 GW at various stages of implementation. The company has also ventured into pump-storage projects, having signed agreements for 7.3 GW with Maharashtra, while discussions for an additional 14 GW with other states are underway.

NHPC Limited, established in 1975, is a public sector hydropower company in India, originally focused on hydroelectric power but now diversified into solar, geothermal, tidal, and wind energy.

Currently classified as a Mini Ratna Category-I Enterprise of the Government of India, NHPC is among the top ten companies in the country in terms of investment base. The Baira Suil Power station in the Chamba district was NHPC’s first project.

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