Tata Power Posts Strong Numbers in Q2 2021 Financial Results

Tata Power has announced its results for Q2 2021, reporting strong numbers in consolidated revenue and Profit after Tax

Tata Power, India’s largest integrated power company, has announced its results for the quarter ended September 30, 2020 (Q2 2021), reporting strong numbers in consolidated revenue and consolidated Profit after Tax (PAT) as compared to Q2FY20.

The firm stated that its Q2 FY21 Consolidated PAT was up by 10 percent at Rs 371 crore due to all-round performance. Q2 FY21 Consolidated Revenue was up by 15 percent at Rs 8,413 crore. Q2 Consolidated EBITDA up by 7 percent at Rs 2,276 Crore (PYQ Rs 2,124 Crore) mainly due to the strong operating performance of all businesses.

At the half-year mark, the firm stated that its Consolidated PAT stood at Rs 639 crore up by 10 percent as compared to Rs 582 crore over H1 FY20. Consolidated revenue was up by 1 percent at Rs 15,084 crore as compared to Rs 14,896 crore in the H1 FY20.

Praveer Sinha, CEO & Managing Director, Tata Power said, “We are glad to report that 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 the 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 Microgrids 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. Tata Power Solar booked 347 MW of new solar/hybrid bids; solar EPC order book today and stands at Rs  8,687 Crore.”

It also stated that on a consolidated basis, Tata Power Group’s Q2 FY21 Revenue was up by 15 percent at Rs 8,413 crore as compared to Rs 7,329 crore last year. This is mainly due to TPCODL acquisition and higher Solar EPC revenue.

On a standalone basis, Revenue stood at Rs 1,654 crore as against Rs 1,813 crore in the corresponding quarter last year mainly due to lower power demand, fuel cost, and power purchase cost. PAT stood at Rs 145 crore as compared to Rs 155 crore in the corresponding period last year with steady operations and operating expenditure well under control.

“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 the 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,” Sinha added.