Tata Power reported a 15 per cent increase in consolidated net profit in Q4 of FY24 while revenue rose over 27 per cent on all-round performance from generation, renewables and distribution. The power producer reported a net profit of ₹895 crore on revenue of ₹15,847 crore.
The company’s capex in the current fiscal year is expected to rise sharply to ₹20,000 crore from ₹12,000 crore in FY24, CEO and MD, Praveer Sinha said in a media call.
Observing that power demand had increased by 10 per cent in the current fiscal year, he said that the company was geared up for the demand to rise and had tied up all the power that would be required. Almost all its plants were operating at maximum capacity and it had adequate domestic and imported coal stock.
The operational and financial performance of all its core businesses – generation, T&D and renewables – were strong and on the growth path, said Sinha. He added that the clean energy portfolio will touch 15 GW by FY27 and “we are committed to supplying round-the-clock renewable energy to our consumers with a mix of solar, wind and pumped hydro storage projects in our portfolio.”
The company ended the fiscal year with 4.5 GW of renewable capacity operational and another 5.5 GW of projects under implementation, taking the total green energy portfolio to over 10 GW.
For the full year, the company reported a 10.8 per cent rise in net profit to ₹3,696 crore, while revenue increased 11.5 per cent to ₹55,109 crore. Core businesses contributed 74 per cent to the profit in FY24 from 44 per cent year ago.
Tata Power has 6,277 Ckm (Circuit Kms) of transmission lines portfolio including 1,651 Ckm capacity in the pipeline. In FY24, it won two projects worth ₹2,300 crore under the Tariff-Based Competitive Bidding (TBCB) process – the Interstate Transmission System (ISTS) - Bikaner III Neemrana II Transmission and the Intrastate Transmission Scheme in Uttar Pradesh through SPV Jalpura Khurja Power Transmission.
Odisha Distribution Business continued to report profit, backed by continuous reduction in AT&C losses and better working capital management, it reported net profit growth of 21 per cent to ₹307 crore in FY24.
Renewables
Tata Power Renewable Energy utility scale EPC order book was 2.6 GW worth ₹ 13,400 crore. Rooftop Solar, in which it is a market leader and group captive, EPC order book was at ₹2,900 crore.
Sinha said that in the renewables space there were ample opportunities and pipeline of projects for which it would be bidding. Clean and green energy would account for 56 per cent of the total portfolio once completed.
Last year, TPREL signed an MoU with the Government of Gujarat to develop 10 GW of renewable energy across multiple sites. It also entered into an MoU with the Government of Tamil Nadu with a proposed investment of ₹70,000 crore in the next few years. It got an order from SJVN for the development of a 1.3 GW firm and dispatchable renewable energy.
In the transmission and distribution segment there were no projects currently that it was bidding on, Sinha said that there were opportunities in several states that would come up once the elections were over. “We will have opportunities after the elections for distribution assets.”