Tata Power rose 1.15% to Rs 57.3 after the power utility reported a 5.7% rise in consolidated net profit to Rs 371 crore in Q2 September 2020 from Rs 350.81 crore in Q2 September 2019.
On a consolidated basis, net sales for Q2 September 2020 stood at Rs 8,289 crore, rising 8% year on year from Rs 7,677.82 crore in Q2 September 2019. The company said rise in revenue was due to TP Central Odisha Distribution Limited (TPCODL) acquisition and higher revenue from Solar EPC segment. The result was announced after market hours yesterday, 10 November 2020.Profit before tax stood at Rs 688.57 crore in Q2 September 2020, an increase of 28.4% over Rs 536.47 crore in the corresponding period last year. Current tax expense spiked 43% to Rs 144 crore in Q2 September 2020 over Q2 September 2019.
EBITDA rose 7% year on year to Rs 2,276 crore in Q2 September 2020. The company said it bagged 347 MW of new solar/hybrid bids while its solar EPC order book stood at Rs 8,687 crore.
Commenting on the company's performance, Praveer Sinha, CEO & MD of Tata Power said, "during the quarter, all our division and subsidiaries have reported robust performance despite pandemic related challenges. We will continue to stay focused on our key growth areas of Renewable and Distribution businesses and to demonstrate benchmark performance of all our existing generation, transmission and distribution businesses. We believe that our future growth areas Rooftop Solar, EV charging stations, Solar pumps and Micro grids in rural areas will bring in greater value and help us seamlessly align with the consumer needs. For Rooftop Solar offerings, we are now present in more than 100 cities in India. For EV Charging, 203 public charging points have been installed and the geographical presence of our EV charging network has been increased to 23 cities. We are working on a long-term strategic plan focused on reducing debt to strengthen our balance sheet. This plan involves divestment of non-core and certain overseas investments, along with restructuring of some of our businesses to unlock value and simplify the structure of the company. Simultaneously, we are on track to monetise our 2.7 GW in Renewable Energy assets through a private InvIT. The transfer of assets to the InvIT will allow us to churn capital and reduce net debt substantially. To further bolster the capital structure, the Promoters have infused Rs 2,600 crore through preferential allotment which has been used for reducing debt."
Tata Power is one of India's largest integrated power company and together with its subsidiaries & jointly controlled entities, it has an installed/ managed capacity of 12,772 MW.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
