Tata Power Posts Financial Results; Boosted by Renewable Business

Tata Power has announced its FY2019-20 financial results, reporting a strong end to the year in the Q4 and strong performance in the renewable business.

Tata Power, India’s largest integrated power company, has announced its FY2019-20 financial results. The firm reported a strong end to the year in the fourth quarter with consolidated Profit After Tax (PAT) before exceptional item up 13 percent from the previous year and strong performance in the renewable business.

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The firm has announced that its Q4FY20 Consolidated PAT before Exceptional Item stood at Rs 366 crore, up 13 percent from Rs 323 crore in the previous year. While EBITDA for the quarter was up 6 percent at Rs 2,013 crore as compared to Rs 1,901 crore in Q4FY19 mainly driven by lower fuel under-recovery in Mundra on account of lower HBA price and better coal sourcing.

For the entire year, the FY20 consolidated PAT before Exceptional Item stood at Rs 1,231 crore as against Rs 1,274 crore in the previous year. FY20 EBITDA was up by 15 percent at Rs 8,317 Crore mainly due to lower losses in Mundra on account of lower HBA price of coal, higher blending and better coal sourcing, capacity addition in renewables business and steady operational performance across all businesses.

However, the firm also reported that its Standalone Q4 FY20 Loss before exceptional items stood at Rs 2 crore as compared to Profit of Rs 114 crore in Q4 FY19. Loss after exceptional items stood at Rs 310 crore as compared to profit of Rs 69 crore in the corresponding quarter last year mainly due to impairment provision for Strategic Engineering Division (SED).

Praveer Sinha, CEO & MD, Tata Power said, “all our businesses and operations have performed exceptionally well. Our robust performance is supported by the excellent performance of renewable business & capacity addition.

“India is in a war-like situation in its fight against COVID-19. Taking stock of the situation, we mobilised our business continuity plan to provide uninterrupted power supply to ensure that citizens continue to comfortably work from home while medical staff, law enforcement agencies and other essential services continue to serve the nation. Globally, India is following one of the most stringent lockdowns with all economic activities coming to a halt for nearly two months now. We are witnessing a drop in demand by almost 30 percent compared to 2019 in our distribution businesses. Though this impacts our topline, almost all Tata Power’s assets are under either regulated businesses or through fixed price long term contracts on take or pay basis. Thus in our business, the return profile covers our fixed costs and provides us assured returns.”

Key Business and Growth Highlights:

  • Strong Solar EPC order book at Rs 7,000 crore
  • TPREL has 700 MW of projects under implementation
  • Tata Power’s stake in Cennergi JV (S Africa) sold for USD 112 Million including a hedging gain of USD 15 Million
  • Non core assets monetisation plan on track
  • Odisha Distribution JV likely to commence soon
  • Prayagraj Power acquisition by Resurgent JV operations stabilised, 90 percent availability achieved
  • Prakriti E- Mobility has signed an agreement with Tata Power to provide state of the art charging infrastructure to support Prakriti’s EV Taxi fleet in Delhi NCR
  • Jaguar Land Rover India and Tata Power announce partnership for Electric Vehicle charging infrastructure
  • Tata Power expanded rooftop solar service to 90 cities across India

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Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.