 "Tata Power")
Power producer and distributor Tata Power on Friday reported a flat net profit of Rs 953 crore for the December quarter (Q3FY24).
In the quarter under review, it reported a 0.8 per cent rise in its consolidated net profit compared to a year ago. The net sales for the company in the same period also registered a modest growth of 3.7 per cent to Rs 14,651 crore from a year ago.
In a Bloomberg poll, six analysts estimated an adjusted net income of Rs 895 crore and nine analysts estimated a revenue of Rs 15,636 crore. The company missed Street expectations for revenue generation.
Sequentially, the company’s net profit grew 8.8 per cent, while net sales fell 6.9 per cent.
Other income for the company in the quarter stood at Rs 643 crore, more than double from Rs 273 crore reported in the same period a year ago. The company’s tax expenses were at Rs 412.64 crore, lower from Rs 811 .8 crore reported a year ago.
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Reported profit after tax (PAT), the company said, grew Rs 1,076 crore as compared to Rs 1,052 crore in the corresponding quarter in the previous financial year. This was buoyed by better realisation in the core business segments consisting of generation, transmission and distribution, and renewables.
Ebitda, the company said, grew 15 per cent year-on-year (Y-o-Y) to Rs 3,250 crore. Ebitda is earnings before interest, taxation, depreciation, and ammortisation.
In a media interaction after the announcement of the results, Praveer Sinha, managing director and chief executive officer (CEO) said the demand for power in the country remains robust.
Sinha added he is positive the company will continue to report better growth in profitability in the coming quarters.
On Tata Power’s under-construction solar module and cell factory, Sinha said the full 4 gigawatt (GW) capacity will be stabilised by July.
On the tie-up of supplementary power purchase agreements for the Mundra capacity, Sinha said the plan is currently operating under Section 11.
“We are hopeful to work out a win-win situation in the next three months or before June when the Section 11 clause ends,” he said.
Sinha added the company will shift focus towards in-house solar engineering, procurement, and construction (EPC) opportunities, and reduce third-party projects in this segment. As of December 2023, the company had a solar EPC order book of Rs 15,885 crore.
