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Tata Power Q3 profit rises 2% to ₹1,076 cr; revenue up 3% – EQ

Tata Power Q3 profit rises 2% to ₹1,076 cr; revenue up 3% – EQ


In Short : Tata Power reports a 2% rise in Q3 profit to ₹1,076 crore, with a 3% increase in revenue. This financial performance indicates steady growth for the company, likely attributed to its involvement in the power sector and ongoing efforts in the renewable energy space.

In Detail : For the first nine months of the current fiscal, the profit grew 13% YoY to ₹3,235 crore, while revenue rose 5% to ₹45,286 crore.

Tata Power, the power distribution arm of Tata Group, on Friday reported growth in its profit for the 17th consecutive quarter in the period ended December 31, 2023, driven by better realisation in the core business segments – generation, transmission & distribution, and renewables. Ahead of Q3 results, shares of Tata Power ended 3.8% lower at ₹392.10 on the BSE.

The power company posted a marginal growth of 2.2% in its profit after tax (PAT) at ₹1,076 crore in Q3 FY24, compared with ₹1,052 crore in the corresponding quarter last fiscal. For the first nine months of the current fiscal, the profit grew 13% to ₹3,235 crore as against ₹2,871 crore in the 9M FY23.

“The contribution of core businesses now stands at 71% for 9MFY24 PAT compared to 40% in FY23,” the Tata group company says in a BSE filing.

The revenue of the company rose to ₹14,841 crore as compared to ₹14,339 crore in the last financial year, registering a year-on-year growth of 3%. For 9MFY24, the revenue hit an all-time high of ₹45,286 crore, compared to ₹43,278 crore in the same period last year.

EBITDA grew 15% YoY to ₹3,250 crore for Q3 FY24, while it rose 34% YoY to record all-time high of ₹45,286 crore for 9MFY24.

Praveer Sinha, CEO and Managing Director, Tata Power, says, “Our core businesses continue to perform well and have helped the company clock its 17th consecutive PAT growth quarter. Our consistent performance shows strong fundamentals of excellence in operational performance and project execution capability.”

“As the country witnesses a surge in power demand, Tata Power is well-positioned to capitalise on the growth momentum with its cutting-edge, customised and cost-effective clean and green energy solutions,” Sinha adds.

Tata Power in its release says that the company is working in various ways, including the development of 2.8 GW pumped hydro storage projects with an investment of ₹13,000 crore, to offer firm and 24×7 dispatchable renewable energy to all segments of consumers.

In its effort to mainstream the adoption of solar energy in the country, Tata Power has facilitated over ₹3,500 crore worth of customer financing for solar projects benefiting 2,200 C&I customers and thousands of residential customers, the release notes.

Tata Power is also developing a green energy transmission corridor as the company secured its first-ever project under the tariff based competitive bidding (TBCB) process during the quarter. The company won ₹1,544 crore contract to develop an Interstate Transmission System (ISTS) – Bikaner III Neemrana II Transmission Ltd that will be developed in 24 months. The transmission project will enable the evacuation of 7.7 GW of renewable energy from Bikaner Complex in Rajasthan.

Besides, the company has also emerged as a winner for another intrastate transmission scheme in Uttar Pradesh that will be developed under project SPV “Jalpura Khurja Power Transmission Ltd”.

As on December 31, 2023, Tata Power’s operational capacity stood at 4,270 MW in the renewables segment, generating 6,031 MUs of green power. Another 4,752 MW of projects under Tata Power Renewable Energy (TPREL) and 4,120 MW of projects under Tata Power Solar Systems (TPSSL) are under execution, thus taking the total clean energy capacity to over 10,000 MW in the next 12-24 months. The company is on an accelerated growth trajectory of transitioning to green energy and aiming for around 70% of capacity from non-fossil-based fuels by 2030, as per the release.

Anand Gupta Editor - EQ Int'l Media Network