Tata Power Signals Strong EPC Recovery In Renewables At Q2 Analyst Meet

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For Tata Power Limited, the FY 23 Q2 results have been a time to cheer, with record revenues and profits for the quarter.  Total revenues at Rs 14, 163 crores were  almost 50% higher than revenues in the corresponding quarter last year. Net profits came in even higher, up 85% at Rs 884 crores, versus Rs 506 crores in the corresponding quarter of FY 22.

At its analyst meet, the company management led by Dr. Praveer Sinha responded to analyst questions on the performance and the way going forward. In a meet that was dominated by questions and responses to the status of the firm’s Ultra Mega 4000 MW Mundhra thermal power plant , the management did find time to highlight significant achievements on the renewable portfolio too.

Utility Scale Renewables Going Strong

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Even as it crossed the 14,000 MW total capacity figure in October, it ended Q2 with 13985 MW capacity (includes thermal under platform-PPA based). Out of this, utility scale renewable capacity accounted for 3870 MW.

The firm announced that it was on course for a total of 5660 MW renewable capacity on the back of 3870 MW of operating plants and 1790 MW of projects under different stages of construction. It has also won a further 850 MW in bids during the last quarter.

The new projects in the pipeline include a mix of solar, wind and Hybrid projects.

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EPC Margins Recovery

Perhaps the most important metric for the EPC business during the quarter was a return to positive margins (2 %), on the back of some key large  projects being renegotiated and rescheduled. Under EPC route, the firm won a 125 MW award from NHDC for a floating solar project, besides the letter of award for a 100 MW ground mounted  project from SJVN. Tata Power Green Energy also delivered a 225 MW Hybrid project to Tata Power Distribution(Mumbai). Projects  adding up to 625 MW of third party EPC were delivered during the quarter.  The order book is strong at 3800 MW worth Rs 15,000 crores.

The firm also reported progress on its manufacturing expansion for solar cells and modules to 4GW . It expects roll out of the first modules by July next year and cells by December.

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Utility Scale EPC Pipeline

Rooftop business 158 MW was commissioned. It also won 330 MW of orders worth Rs 1233 crores in hand with 90% from the C&I segment.  the firm has covered 256 districts in the country, including 100 plus cities. The 400 MW order book worth Rs 1500 crores should grow further, taking its cumulative portfolio to 1100 MW plus in rooftop segment.

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In solar pumps, an area the firm expects much from, it installed 6000 pumps during the quarter, taking its total to 17000 pumps.

Its e-mobility division added 122 public chargers, taking the total network to over 3000. 5321 home chargers were also added during the quarter, thanks to its tie-up with Tata Motors, taking cumulative numbers to over 23,000. 240 E-bus charging points have been added by the firm across different cities besides these numbers.

The contributions from its Mundhra plant should continue for now, seeing the power demand in the country, ensuring the firm has a clearer roadmap to possibly even reduce debt.