Tata Power plans to hike FY25 capex to Rs 20,000 cr vs Rs 12,000 cr last year – EQ
In Short : Tata Power, the Indian integrated power company, has disclosed its plans to increase its capital expenditure (capex) for the financial year 2025 to Rs 20,000 crore compared to Rs 12,000 crore in the previous year. The company aims to invest in various projects to enhance its power generation and distribution capabilities and expand its renewable energy portfolio. The increased capex reflects Tata Power’s commitment to strengthening its infrastructure and achieving its growth targets in the coming years. The company is focused on accelerating its renewable energy projects, improving operational efficiency, and implementing innovative technologies to drive sustainable growth.
In Detail : CEO and MD Praveer Sinha said about 50 percent of the total capex would be used for renewables, while the balance would be utilised for businesses in others sectors including distribution, transmission and coal-based plants
Tata Power plans to increase its capital expenditure to Rs 20,000 crore for the financial year 2024-25, CEO and MD Praveer Sinha said in a media call on May 8. The capex for FY25 would be an increase of over 65 percent from the last year, as the company spent Rs 12,000 crore in FY24.
Sinha said about 50 percent of the total capex would be used for renewables, while the balance would be utilised for businesses in others sectors including distribution, transmission and coal-based plants. He added that the company would fund the capex through internal accruals and some debt.
As of March 31, 2024, Tata Power has 4.5 GW of renewable capacity operational and another 5.5 GW of projects under implementation, taking the total green energy portfolio to over 10 GW. The company has 6,277 Ckm (Circuit Kms) of transmission lines portfolio, including 1,651 Ckm capacity in pipeline.
Tata Power on May 8 reported consolidated net profit of Rs 1,045.59 crore for the fourth quarter of FY23-24, growing 11.37 percent from the year-ago period driven by strong performance of its core thermal coal generation business. Its net profit, however, remained flat from the previous quarter as it posted profit of Rs 1,076 crore in Q3FY24.
Sinha attributed company’s robust performance on growth in all its sectors. “The operational and financial performance of all our core businesses – Generation, T&D and Renewables – has been strong and is on a growth path,” said Sinha.
Tata Power said in FY24 the company achieved its highest-ever revenue and EBITDA at Rs 61,542 crore and Rs 12,701 crore respectively, backed by a strong rising share from core businesses of generation, transmission & distribution and renewables, which contributed 74 percent to FY24 PAT compared to 44 percent in FY23.
