Tata Power Delivers Steady Q2, 16th Quarter of Growing Profits

Tata Power has revealed its financial results for Q2 for FY24 in its analyst call presentations– for the quarter ended September 30, 2023. The private power firm that hopes to have a majority of it’s assets portfolio in renewables by FY26, has delivered a strong set of numbers, with profits after tax up 9% to a record Rs 1017 crores in Q2 Fy24, even as revenues grew in step to Rs 15,442 crores during the quarter over the same quarter last year.  That took H1 revenues to Rs 30,446 crore with PAT of Rs 2158 crores.

Providing a recap of wins, the firm said that its renewable energy arm, Tata Power Renewable Energy Limited, received the second tranche of INR 2,000 Cr and issued compulsorily convertible preference shares (CCPS) which will result in further dilution of 5.37% equity stake. TPREL also received LoA for 966 MW hybrid RE project from Tata Steel.
Tata Power signed an MoU with Maharashtra Government for the development of 2.8 GW of Pumped Storage Project (PSP).

In a major announcement that will augment its installed capacities substantially, its 4.3 GW cell and module plant achieved First Module Out (FMO) in October 2023. TP Solar secured USD 425 Mn financing from US Development Finance Corporation (DFC) for 4.3 GW cell and module manufacturing plant. The first cell production is scheduled in Q4FY24. The new module plant vaults it to the top 5 list of module manufacturers by capacity for now in India.

Segment-wise Revenue

The firm’s rooftop segment in Q2FY24 raked in INR 314 Cr from INR 420 Cr in Q2FY23. This indicates a downturn worth INR 106 Cr.

The revenue from group captive in Q2FY24 stands at INR 460 Cr, overtaking revenue from rooftop. There has been a steady increase in captive segment with INR 208 Cr reported in Q1FY24 and INR 157 Cr in Q2FY23.

Revenue from renewables

Tata Power’s Q2 results showed that the revenue in Q2FY24 stood at INR 2,146 Cr, as opposed to INR 1,603 Cr in Q2 Fy23. The EBITDA stands at INR 813 Cr in Q2FY24 vs INR 736 Cr in Q2FY23. PAT in Q2FY24 is INR 186 Cr in contrast to INR 128 Cr in corresponding quarter in FY23

Order Book 

The firm’s EPC business currently has an order book of 3,688 MW worth INR 15,870 Cr (58% is third party EPC). Tata Power Q2 financial result documents showed.

The utility scale order book looks well diversified with maximum orders from Tata Power Group worth INR 6,655 Cr. Its orders from SJVN are pegged at INR 3,662 Cr and INR 1,948 Cr from NTPC.

Tata Power Q2 results said that it also terminated projects valued at INR 1,158 Crore citing  unfavourable economics.  New orders of 30 MW were won in Q2 worth INR 146 crores. Order book at Q2 FY24 stands at ₹ 2,341 crore, Tata Power Q2 results showed. There seems to be strong traction seen in group captive with orders of 161 MW won in Q2 FY24.