Tata Power reports strong Q4 performance

Tata Power has reported strong growth in Q4 profit on the back of robust performance across all its subsidiaries and power plants.

Tata Power’s net profit came in at ₹259 crore, a 119 per cent increase when compared to ₹118 crore in the year-ago period.

Revenues were strong and came in at ₹7,574 crore, an increase of 5.57 per cent when compared to ₹7,174 crore in the year ago period.

However, for the whole year, net profits saw a decline. In fiscal 2019, Tata Power reported consolidated profit after tax before exceptional item of ₹1,109 crore as against ₹1,215 crore in fiscal 2018, largely due to lower profits at coal companies. This was due to coal companies lower Freight On Board (FOB) prices.

Revenues for the fiscal was up 12 per cent at ₹29,493 crore, when compared to ₹26,430 crore in fiscal 2018. The board recommended a dividend of ₹ 1.30 per share, which was same as last year.

Praveer Sinha, CEO & MD, Tata Power said: “All our subsidiaries and plants have reported robust performance despite sectoral challenges.”

This growth was led by a combination of factors – from improving old businesses and uptick in new areas. One of them was continued growth in its solar EPC business which has an order book of ₹ 1,600 crore in the financial year.

Sinha pointed out that Tata Power’s renewable business added a capacity of 200 MW and another 400 MW is currently in pipeline.

The Trombay Power Puchase Agreement (PPA) with BEST & TPC-D received an extension of five years. Through resurgent platform, Tata Power is in the process of acquiring the 1980-MW Prayagraj plant.