NHPC's Dulhasti 3x130 MW new tariffs approved by CERC @ Rs4.43/kWh based on design energy of 1,907 MU and with 39% equity
portion (as actuals’ on exception basis vs. its rule of 30% max equity).
Dulhasti had cost escalations by 3.05x to Rs50.8 bn and due to nonapproval of cost-escalations, NHPC was charging a provisional tariff of
Rs3/kWh. The under-recoveries from provisional tariffs till 30 Nov 09 have been ~Rs5.9 bn (Rs1.43/kWh x 4,134MU - Generation from COD
till 30 Nov’09) that are likely to be recovered in FY10 earnings
The stock trades at 1.64x FY10E and 1.54x FY11E consensus book. On PE terms, NHPC trades at 24.8x and 21.1x FY10E and FY11E consensus earnings. It is a GREEN ENERGY company and a good long term bet.
