TATA Power’s Q4 FY21 Results: Revenues Jump 50%

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Mumbai-based electric utility company Tata Power Limited released its financial results for the fourth quarter of FY21 ended March 31, 2021, announcing a marginal rise of one per cent in consolidated net profit at Rs 481.21 crore (Rs 474.70 crore in the year-ago period), due to saving in finance cost offset by an exceptional gain in the previous year.

India’s largest integrated power company also increased its consolidated net profit in 2020-21 to Rs 1,438.65 crore from Rs 1,316.44 crore in 2019-20. The company’s revenues grew by 49% to Rs 10,255 crore in Q4 FY21 from Rs 6,881 crore earned in Q4 FY20, largely on the back of its acquisition of  Odisha DISCOMs and higher execution of solar EPC Projects. The total income for the full financial year increased to Rs 32,907.34 crore from Rs 29,698.98 crore in the year-ago period. The firm claims over 12 million customers for its retail power distribution now.

While EBITDA was Rs 2,013 crore in the corresponding quarter in FY20, it declined by 17.1% to Rs 1,668 crore in Q4 FY21, likely because of higher losses in CGPL due to higher coal price and lower tax. Although more than Rs 3,300 crores were spent in capital expenditure during the year, the company managed to decrease its net external debt by Rs 7,600 crore, and further improvement is expected from the sale of non-core assets and other initiatives. Debt Equity level already stands at 1.4 and is likely to reduce further. Important to note, Tata Power added 65 MW to its renewable energy generation capacity, which now stands at a total of 2,693 MW. The board also recommended a dividend of Rs 1.55 per equity share of Re 1 each to the shareholders for 2020-21.

Tata Power Solar Systems Limited, recently expanded its manufacturing facility in Bengaluru, thereby taking the total production capacity of cells and modules up to 1,100 MW.

Dr Praveer Sinha, CEO & MD, Tata Power, said, “All our businesses and operations have performed exceptionally well. This can be attributed to the overall excellent performance of the generation, transmission, distribution and renewable businesses.” He added, “We are anticipating significant growth in the Solar sector and have planned various developmental initiatives to grow our Solar business. Tata Power Solar Systems Limited, our wholly owned subsidiary, recently inaugurated a state-of-the-art expansion of its manufacturing facility in Bengaluru, thereby, taking up the total production capacity of cells and modules to 1,100 MW.”

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Sinha also said that Tata Power will continue to concentrate on its key growth areas – renewables, distribution business and new businesses of rooftop solar panels, solar pumps and EV charging.

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The company is yet to announce a fresh pathway to its InvIT plans, for which a proposed investment by Petronas reportedly fell through in April. That, along with continued improvement at its Mundra thermal plant, is being considered key to keeping the firm on the growth track, powered by its renewables push.