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Tata Power published its first quarterly results for the new fiscal year on August 6, 2021. Tata Power’s consolidated net profit rose 74% year-on-year (y-o-y) to Rs 465.69 crores compared to Rs 268.10 crores last year. Tailwinds from a consistent performance by all businesses, reduction in finance cost and higher execution of EPC projects helped the company secure strong bottom-line growth.

The total income of the company also increased on a y-o-y basis to Rs 10,145.89 crores against Rs 6,540.42 crores reported in the first quarter of the last financial year. This was achieved on the back of the acquisition of Odisha Discoms and higher sales/execution in its solar EPC businesses.

The consolidated EBITDA for the company also grew to Rs 2,364 crores up 16% against Rs 2,037 crores reported in the same quarter in the previous year. Renewable EBITDA came in at ₹ 643 crore, up 9% as compared to ₹ 588 crore in Q1 FY2021, mainly due to higher wind & solar power generation, better performances in Solar EPC, rooftop, solar pumps business and favourable tariff order for CGPL.

The Earnings Per Share (EPS) after the end of the first quarter was Rs.1.35. last year, after the first quarter, the EPS was a mere Rs.0.16

Tata Power declared a final dividend of Rs.1.55 per share on 12th May 2021.

Hits

  • Consolidated profit for Tata Power grew 74% y-o-y. 
  • PAT increased to Rs 465.69 crores from Rs 268.10 crores a year ago
  • Total income increased from Rs 6,540.42 crores to Rs 10,145.86 crores on a y-o-y basis
  • EBITDA grew 36.06% y-o-y – from Rs 1,708 crores to Rs 2,324 crores
  • EPS increased by 743.75% y-o-y to Rs 1.35/share compared to Rs 0.16/share a year ago

Management commentary

Commenting on the Company’s performance, Dr. Praveer Sinha, CEO & Managing Director, Tata Power said, “All our existing generation, distribution and transmission business units have reported a robust performance despite the challenges presented by the ongoing pandemic. This can be attributed to the excellent performance of all our businesses and capacity additions.

We aim to scale up our renewable portfolio from the current 4GW to 15GW by 2025 and to 25GW by 2030, thereby achieving 80% clean generation capacity, up from the current 31%.”

What’s in it for investors?

With a robust performance posted by the company, especially the new verticals such as solar, the company is poised to grow in the future. The EPS shows that the company has given increased earnings to its shareholders over the years. Moreover, with an increased PAT, the company’s financial position is also strong. 

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