NTPC to use 0.5% profit for research

NTPC declined 0.34% to Rs 191.15 at 12:51 IST on BSE after its board decided setting up a research and development fund for undertaking activities leading to development of sustainable energy.

The stock hit a high of Rs 193.70 and a low of Rs 189 so far during the day. The stock had a 52-week high of Rs 291 on 15 January 2008 and a 52-week low of Rs 148.50 on 11 May 2007.

The company’s current equity is Rs 8245.46 crore. Face value per share is Rs 10.

The current price of Rs 191.15 discounts its Q3 December 2007 annualised EPS of Rs 8.63, by a PE multiple of 22.14.

The company will allocate 0.5% of distributable profit annually for sustainable enegy initiative.

Meanwhile, National Thermal Power Corporation (NTPC) is reportedly looking to buy coal blocks in Indonesia, Mozambique and South Africa to bridge the fuel supply shortfall.

NTPC imports about 2 million tonnes of coal out of its total requirement of 110 million tonnes to fire its thermal power plants. It is looking at buying coal mines abroad that can give up to 20 million tonnes of coal yearly.

NTPC has formed a joint venture firm Coal Ventures International, with Steel Authority of India, Rashtriya Ispat Nigam, Coal India and National Mineral Development Corporation to acquire coal mines overseas reports added.

NTPC's net profit declined 15.4% to Rs 1779.90 crore on 9.4% rose in sales to Rs 9330.80 crore in Q3 December 2007 over Q3 December 2006.

NTPC’s core business is operation of power generating plants. It also provides consultancy in the area of power generation to companies in India and abroad.