 "Tata Power Q1 FY25 results: Net profit flat at Rs 970 crore, revenue up 14%")
Private power producer Tata Power reported a net profit attributable to the owners of the company of Rs 970 crore for the quarter ended June 2024 (Q1FY25), flat from its performance a year ago when it had recorded a one-time gain of Rs 234.68 crore.
Top executives at Tata Power also softened their stance on thermal power opportunities, stating the company will evaluate options.
For the quarter under review, Tata Power’s revenue from operations was at Rs 17,293.62 crore, up 14 per cent. In a Bloomberg poll, nine analysts estimated a revenue of Rs 16,855 crore for Tata Power and a net income adjusted of Rs 957 crore. Sequentially, Tata Power’s net profit was flat and revenue from operations was up 9 per cent.
On opportunities in the thermal power space, Praveer Sinha, chief executive officer and managing director of the company, said, “It is important to look at returns and we keep examining from an energy security point of view.” This is a softened stance from the company, which earlier said it will not make any further investments in the fossil-fuel segment.
On the change in strategy towards thermal power, Sinha added, “Situations keep evolving.” Sinha answered in the affirmative on whether the company will assess any positive return opportunities in the form of thermal power purchase agreements (PPA) tenders floated by state distribution companies.
In the past quarter, Tata Power said it spent Rs 4,000 crore as capital expenditure and looks to spend Rs 20,000 crore for the full year. In new project updates, the company said it has commenced solar module production at the newly built 4.3 gigawatt (GW) solar module and cell manufacturing plant in Tirunelveli, Tamil Nadu. The unit produced 600 MW of modules and generated Rs 1,000 crore revenue in its first quarter of operations and a profit of Rs 54 crore in Q1FY25, the company said, adding cell production will start this month.