Tata Power has reported profits of ₹246 crore in the December 2019 quarter, a 11.8 per cent increase compared with the ₹220 crore it posted in the December 2018 quarter. The profit growth was driven mainly due by lower fuel under-recovery in the company’s Mundra plant and better operational performance by all businesses.
Consolidated revenue came in at ₹7,171 crore in the December 2019 quarter, down compared with the ₹7,911 crore in the corresponding quarter last year. This was due to a one-off deferred tax benefit of ₹272 crore on a PPA (power purchase agreement) extension in the Mumbai licences area, lower demand and lower coal prices, the company said.
‘Strong growth trajectory’
Praveer Sinha, CEO and MD, Tata Power said: “All our operations have performed well. We have reported a strong growth trajectory in renewable business and other consumer centric businesses.”
Tata Power also pointed to the public-private partnership with Central Electricity Supply Utility of Odisha, which has doubled its customer base to 50 lakh, as one of the key developments during the quarter. Tata Power was was selected as the successful bidder to own the licence for the distribution and retail supply of electricity in Odisha’s five circles.
During the quarter, Renascent Power Ventures, a 100 per cent subsidiary of Resurgent Power Ventures Pte Ltd (a joint venture between Tata Power International, ICICI Ventures and other global investors), completed the acquisition of 75.01 per cent ownership in Prayagraj Power Generation Company and settled the loans through a mix of new bank loans and equity from Resurgent.
The company has shown growth in solar EPC (engineering, procurement, construction) business with a project order pipeline of ₹7,700 crore, out of which ₹4,900 crore of order is from outside the group.
The firm also reported that its new consumer-centric businesses, including rooftop solar projects for residential consumers, have reached 60 cities with 100 EV (electric vehicle) charging points across 4 four cities. Tata Power Solar’s order book stands at ₹7,700 crore.