Share:

India’s largest private power utility, Tata Power declared an 18% rise in its revenue on a year-on-year (YoY) basis as per the results it submitted on October 28, 2021. The revenue from operations rose to Rs. 9810.2 crores from Rs 8,289 crores YoY.

The company recorded a consolidated net profit of Rs. 421.5 crores, up 51% YoY. The transmission and distribution segment (T&D), recorded a 48% jump in revenue to Rs. 6787.4 crores. 

However, the thermal power generation business was affected as an impact of the coal shortage that our nation faces. Consequently, the revenue for this segment fell by 36% to Rs. 2216.9 crores YoY. 

The renewable energy segment nonetheless saw revenues come in at Rs.1494.9 crores, up nearly 35% YoY.

The company had relief on the cost of fuel, which fell nearly 17% YoY. While on the other hand, the cost of power purchased rose a mammoth 61%. 

The script closed nearly 3% down at Rs.217.95, contrary to the very strong bull run it had experienced through the month, touching a record high of Rs. 269.7. The stock has surged over 314% in the past year.

Hits

  • Consolidated profit was recorded at Rs. 421.5 crores, up 51% on a yearly basis.
  • Revenues (operation) stood at Rs.9810.2 crores,climbing nearly 18% YoY.
  • T&D sector proved its prowess and declared a 48% growth at Rs.6786.4 crores.
  • Renewable energy, the biggest bet of the company moving ahead did not disappoint as it posed a 35% YoY increase in revenue at Rs.1494.9 crores. 
  • The cost of fuel fell by 17%, a major relief for Tata power
  • India’s power demands return to normal after the pandemic shock, up 4.9%.
  • AS GOI and the public shift to cleaner and affordable energy, there is a huge scope for Tata Power.

Misses

  • The cost of power showed a worrying increase of nearly 60%.
  • Power generation segment did not impress, reporting a fall of 36% to Rs. 2216.9 crores YoY.
  • Operating profit down from Rs 2,124 crore to Rs 1,355 crore over the last quarter.
  • EBITDA decreases from Rs 2,276 crore to Rs 1,732 crore QoQ.
  • Expenses up from Rs 1,090 crore to Rs 1,341 crore QoQ amid higher power generation and fuel costs. 
  • Coal shortage affected the thermal power generation business over the quarter under review.

Tata Power In the news 

  • This month, TVS Motors entered into a strategic partnership with Tata Power for the implementation of EVCI (Electric vehicle charging infrastructure) across India. 
  • The stock had an electrifying performance on the indices, up more than 70% just in the last few weeks, courtesy of heavy volume and expected growth. More than 100 million equity shares changed hands on NSE and BSE.
  • The company aims to scale up its renewable portfolio from the current 4GW to 15GW by 2025 and 25GW by 2030, achieving nearly 80% clean generation capacity. 
  • Tata Power Solar (subsidiary) has secured orders to install 100 MW of distributed generation in Maharashtra. It also received a letter of award (LoA) for EPC work worth 5.4 bn. 
  • The subsidiary also received EPC orders worth 6.9 bn that is estimated to increase business by 10 times
  • Tata Power to soon launch an IPO for its renewable energy unit.
  • The company aims to increase the current 961 charging stations to at least 2000 by the end of this fiscal year. 
Share: