Tata Power Net Profit Swells by 71% Signifying Comprehensive Growth

The third quarter results of Tata Power in the current financial year is out and the company has posted a staggering 71% rise in the consolidated profits against the corresponding period of the previous fiscal. The renewable portfolio in terms of profit after tax (PAT) grew by 107% – all credit to their solar expansion.

The consolidated net profit is Rs 426 crore for the third quarter of financial year 2022 which is way higher than Rs 248 posted by the third quarter of 2021. There is an all-round performance by the power conglomerate.

The strong net profit is on the back of strong all-round business performance by all verticals.

The financial data revealed shows that the revenue from operations rose 44% to Rs 10,913 crore during the reporting period as compared to Rs 7,597 crore in the last year period. The rise is attributed to expanded operation in Odisha DISCOMS, higher project execution by Tata Power Solar Systems Ltd. (TPSSL) and good performance in other businesses.

Praveer Sinha, CEO & MD of Tata Power, said, “Tata Power has delivered strong financial performance for the ninth consecutive quarter. All our business clusters have contributed significantly despite facing pandemic-related challenges, demonstrating tremendous resilience, strength and agility.”

The renewable segment of the company saw profit after tax growing by 107% in the third quarter. The company has added 289 MW capacity and executed both large scale and rooftop solar projects through TPSSL. This included two solar plants of 50 MW each commissioned in Prayagraj and Banda in Uttar Pradesh. With a massive investment of Rs 3,400 crore, the company will now set up a 4GW solar cell and module manufacturing unit.

Sinha further adds, “We are committed to focus on key growth areas viz renewables, distribution, and new businesses comprising rooftop solar, solar pumps and EV charging. We’ll focus on utilising technology to offer smart, green energy solutions and provide world class experience to our 12 million plus customers.”

The company’s cumulative solar rooftop portfolio has crossed 900 MW and the FY22 Order book crossed Rs 1,000 crore with at least Rs 375 crore orders won in the third quarter. Their channel network has also been expanded to more than 300 partners across 150 districts.

The impact of the quarterly result was immediately visible on the company’s stock. On Wednesday, Tata Power shares rose 1.51% to settle at Rs 238.40 apiece on NSE.