Tata Power Q1 FY2024 Earnings: Posts 29% Rise in Profit

Tata Power Company Limited announced its Q1 FY2024 results, reflecting a robust 29% YoY growth in its consolidated net profit, which surged to Rs 1,140.97 crore from Rs 883.54 crore recorded the previous year. The profit also marked a sequential increase of 21.5% from Rs 938.81 crore in the preceding quarter.

However, the company’s consolidated revenue from operations depicted a modest rise, registering a 1.5% increase at Rs 14,982.55 crore compared to Rs 14,752.69 crore in Q1 FY2023. This subdued performance was attributed to heightened sales from distribution entities combined with added capacity in renewable sectors. Sequentially, the revenues saw an elevation of 17.6% from the previous quarter’s Rs 12,737.37 crore.

The company’s EBITDA showcased an impressive upturn, with a 43% rise, culminating at Rs 3,005 crore as opposed to Rs 2,107 crore from Q1 FY23. The boost was credited to the reduced under-recovery in the Mundra plant and a favorable regulatory verdict regarding Maithon Power Limited (MPL).

A notable aspect of this quarter’s results was the one-time gain of Rs 235 crore that Tata Power accrued due to the deemed gain from diluting approximately 17% stake in Tata Projects.

Praveer Sinha, CEO & MD of Tata Power, expressed satisfaction with the results, mentioning the company’s “15th consecutive quarter of PAT growth.” He attributed this consistency to effective strategies, operational efficiencies, and the relentless efforts of their committed workforce. Sinha also shed light on their capital expenditure plans, with an allocation of nearly Rs 12,000 crore for the ongoing fiscal year. This fund aims to bolster Tata Power’s green energy transition while capitalizing on growth avenues in the transmission and distribution sectors.

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In terms of capacity, Tata Power’s total installed base is pegged at 14,294 MW. Thermal power contributes 62% to this capacity, with renewables accounting for the balance. The company’s EPC arm flaunts an order book amassing 4,200 MW, valued at over Rs 17,600 crore, wherein third-party EPC projects comprise 57% in terms of value.

In the stock market, Tata Power’s shares concluded trading at a slightly elevated note, ending 0.4% higher on the NSE, priced at Rs 234.90 ahead of the earnings announcement.

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Author: Sanjib SahaSanjib is a finance based writer who has a deep knowledge in stock market, cryptocurrency and mutual funds. He is also a co-founder of Financesrule.com

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