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Tata Power Q1 Results FY22-2023

26 July 2022

The electric utility giant, Tata Power, declared its results for the first quarter of FY23 on 26th July 2022. Profit after tax (PAT) for the company came in at Rs. 794.60 crore, a stellar growth of 103.21% YoY (year on year). The company had declared PAT at Rs. 391.03 crore in Q1 FY22. This is the 11th consecutive quarter in which Tata Power has displayed PAT growth. 

This exceptional performance can be attributed to the increase in its revenue from operations, which stood at Rs. 14,495.48 crore in this quarter, showing a 43.06% YoY growth from Rs. 10,132.35 crore reported in Q1 FY22. The net profit margin also increased to 6% in Q1 FY23 from 5% in Q1 FY22.

However, the consolidated EBITDA of the power giant came in at Rs. 2,107 crore in Q1 FY23, falling by 10.9% YoY from Rs. 2,365 crore in Q1 FY22. This was possibly due to a high base set by a one-off event - a favourable regulatory order in Mundra in the previous year. The operating margin of the power company also contracted to 13% in Q1 FY23 from 18% in Q1 FY22. 

On the execution front, Tata Power commissioned 600 MW large-scale EPC projects and has a strong Solar EPC order book of Rs. 14,626 crore from winning 1.7 GW projects in Q1 FY23. The power giant also signed an MoU with the Tamil Nadu State Government for a Rs. 3,000 crore investment for setting up a greenfield 4 GW Solar Cell and Module Plant in the state.

Notably, Tata Power commissioned India’s largest floating solar power project of 101.6 MWp in Kerala. The Odisha Discoms continued with their strong performance in this quarter. Further, a Smart Meters installation drive was rolled out across all Discoms. 

Powering Green Mobility was promoted through a network of 2,350+ Public and Semi-Public EV Chargers with another 1,400+ chargers in various stages of installation. 

Commenting on the future planned capex, management said the company plans a Rs. 14,000 crore consolidated capex in FY23, with Rs. 10,000 crore in Renewables. 

The earnings per share (EPS) based on total operations after net movement in Regulatory Deferral Balances stood at Rs. 2.48 in Q1 FY23, showing a 119.47% YoY growth from Rs. 1.13 in Q1 FY22. However, ahead of the result, the Tata Power share closed in the red at Rs. 225.0 per share, down 3.01% from the previous day's closing. 

Hits of Tata Power Share Q1 Results

  • Profit after tax (PAT) increased 103.21% YoY to Rs. 794.60 crore in Q1 FY23 from Rs. 391 03 crore in Q1 FY22.
  • Revenue from operations stood at Rs. 14,495.48 crore in this quarter, showing a 43.06% YoY growth from Rs. 10,132 35 crore in Q1 FY22.
  • The net profit margin increased to 6% in Q1 FY23.
  • EPS based on total operations after net movement in Regulatory Deferral Balances stood at Rs. 2.48 in Q1 FY23, showing a 119.47% YoY growth.

Misses of Tata Power Results

  • EBITDA stood at Rs. 2,107 crore in Q1 FY23, falling by 10.9% YoY from Rs. 2,365 crore in Q1 FY22.
  • Operating margin contracted to 13% in Q1 FY23 from 18% in Q1 FY22. 

Segment-wise revenue of Tata Power in Q1 Results

  • Generation: Revenue increased 80.22% YoY to Rs. 5,125.83 crore in Q1 FY23 from Rs. 2,844.14 crore in Q1 FY22. 
  • Renewables: Revenue increased 31.78% YoY to Rs. 2,089.99 crore in Q1 FY23 from Rs. 1,586.02 crore in Q1 FY22.
  • Transmission and Distribution: Revenue increased 38.83% YoY to Rs. 8,958.60 crore in Q1 FY23 from Rs. 6,452.72 crore in Q1 FY22.
  • Others: Revenue increased 66.78% YoY to Rs. 105.19 crore in Q1 FY23 from Rs. 63.07 crore in Q1 FY22.

What the management says about Tata Power Quarterly Results

Commenting on the company’s performance, Dr. Praveer Sinha, CEO & MD at Tata Power said, “We have started the new fiscal year on a solid note with all of our business clusters - Generation, Transmission, Distribution, including Odisha, and Renewables - performing very well. This is aptly reflected in our 11th consecutive quarter of PAT growth. We have a robust growth trajectory with stable long-term cost structures and competitiveness across businesses. We are offering a wide range of energy services across the entire value chain along with cutting-edge technologies and superior project execution capabilities. As a future-ready EaaS company, we are well poised to contribute towards India's green energy transition." 

Other things to know

  • The company achieved an order book of over Rs. 14,500 crore in EPC utility-scale projects. Tata Power also commissioned 234 MW of in-house projects and 370 MW of Utility Scale EPC Projects for third party customers. 
  • The cumulative solar rooftop portfolio expanded to 1,000 + MW, with installations across roof spaces, floating solar, ground mounted/open access.
  • The company achieved an order book pipeline of over Rs. 750 crore at the end of Q1 FY23. It launched six new schemes with multiple financing partners focusing on providing easier and  faster financing options for Residential and MSME customers across the country. 
  • Ranked amongst India's top 10 sustainable companies based on the strength of its alignment with the United Nations Sustainable Development Goals (SDGs) in 2021.
  • Tata Power Skill Development Institute has planned to train 3,000 youth in green energy jobs in FY23 and will scale up the numbers to 5,000 by 2025 to support India’s Green Energy Transition.

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Research Analyst: Bavadharini KS

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