Tata Power Reports 12% Increase in Profits, Citing Renewable Additions & Lower Losses

Tata Power has reported its profits grew 12 percent and stood at Rs 246 crore as compared to the corresponding quarter last year at Rs 220 crore.

Tata Power has announced its financial results for the third quarter of the financial year 2020, reporting consolidate Profits After Tax (PAT) grew 12 percent and stood at Rs 246 crore as compared to the corresponding quarter last year at Rs 220 crore. This is mainly due to lower losses in Mundra and better operational performance across all businesses.

The firm announced that in its renewable business, which has so far seen 400 MW in capacity additions in the financial year, there continues to be growth with EBITDA increasing from Rs 436 crore in Q3 FY20 to Rs 515 crore up by 18 percent despite lower solar PLFs due to extended monsoon.

Furthermore, YTD FY20 Consolidated EBITDA stood at Rs 6,313 crore up by 18 percent over the previous year mainly driven by lower losses in Mundra, capacity addition in Renewables and better operational performance across all the businesses. For Q3 Consolidated EBDITA was up 8 percent at Rs 1,970 crore (Excluding one-off item in Q3FY19, EBITDA grew by 27%) as compared to Rs 1,820 crore in Q3FY19

YTD FY20 Consolidated PAT before exceptional item stood at Rs 850 crore (as compared to Rs 895 crore in the previous year. Consolidated Revenue stood at Rs 22,067 crore as compared to Rs 22,388 crore in the same period last year.

Key Business Highlights from the period include:

  • An award of Letter of Intent (LOI) by Odisha Electricity Regulatory Commission & was selected as the successful bidder to own the license for the distribution and retail supply of electricity in Odisha’s five circles, together constituting Central Electricity Supply Utility of Odisha.
  • NTPC awarded a Letter of Award to Tata Power Solar for a 250 MW solar project under the CPSU scheme. The total value of the order is Rs 1,505 crore and the completion period is 20 months.
  • TPREL received a Letter of Award (LOA) from Gujarat Urja Vikas Nigam Limited (GUVNL) on November 7, 2019, to develop a 50 MW solar project in Dholera Solar Park of Gujarat. This LOA is in addition to the 250 MW Solar Project being set up by the Company at Dholera Solar Park.
  • Robust growth in Solar EPC business with a large project order pipeline of Rs 7,700 crore out of which Rs 4,900 crore of order is from outside the group. TPSSL won projects worth Rs 4,000 crore since September 2019.
  • Tata Power announced setting up of TP Renewable Microgrid in collaboration with the Rockefeller Foundation to become the world’s largest microgrid developer & operator. TPRM anticipated setting up of 10,000 microgrids through 2026 to provide power to 800 million people across India and help eradicate energy poverty.

Praveer Sinha, CEO & managing director, Tata Power said, “All our operations have performed well. We have reported a strong growth trajectory in renewable business and other consumer centric businesses.”

“We hope to serve Odisha’s consumers with 24×7 reliable power and unmatched customer services. Tata Power Solar’s order book stands tall at an approximate Rs 7,700 crore, marking a major business accomplishment for the company. Our collaboration with the Rockefeller Foundation to set up 10,000 micro-grids in India by 2026, is a testament of our commitment to provide affordable, reliable electricity for millions of rural homes and enterprises. Our new consumer-centric businesses including Rooftop solar projects for residential consumers have reached 60 cities with 100 EV charging points across 4 cities. We aim to continue this trend and create smart consumers for tomorrow by providing a range of next-gen power solutions,” he added.

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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.