NEW DELHI: Tata Power on Tuesday posted a 10 per cent increase in consolidated net profit at Rs 371 crore for the quarter ended September 2020.
“Consolidated PAT stood at Rs 371 crore (in July-September 2020) up by 10 per cent as compared to Rs 339 crore in Q2 FY20 due to stable performance across businesses,” a company statement said.
On a consolidated basis, Tata Power Group’s Q2 FY21 revenue was up by 15 per cent at Rs 8,413 crore as compared to Rs 7,329 crore last year.
The rise in revenue was mainly due to acquisition of TPCODL (TP Central Odisha Distribution Ltd) and higher solar EPC (engineering, procurement and construction) revenue, it said.
On Covid-19, it said the management believes there is not much of an impact likely due to this pandemic. However, there exists some uncertainty over the impact of Covid-19 on future business performance of some joint ventures involved in the coal mining and an associate engaged in providing EPC services, it added.
However, the management believes that the said uncertainty is not likely to impact the recoverability of the carrying value of its investment in such joint ventures and associate.
“We are glad to report that during the quarter, all our divisions and subsidiaries have reported robust performance despite pandemic related challenges.
“We will continue to stay focused on our key growth areas of Renewable and Distribution businesses and to demonstrate benchmark performance of all our existing generation, transmission and distribution businesses,” Tata Power CEO and Managing Director Praveer Sinha said.
“We believe that our future growth areas Rooftop Solar, EV charging stations, Solar pumps and Micro grids in rural areas will bring in greater value and help us seamlessly align with the consumer needs,” he added.
For rooftop solar offerings, the company is now present in more than 100 cities in India.
For electric vehicle (EV) charging, 203 public charging points have been installed and the geographical presence has been increased to 23 cities.
Tata Power Solar booked 347 MW of new solar/hybrid bids. The solar EPC order book stands at Rs 8,687 crore.
Sinha said the company is working on a long-term strategic plan focused on reducing debt to strengthen its balance sheet.
This plan involves divestment of non-core and certain overseas investments, along with restructuring of some of its businesses to unlock value and simplify the structure of the company.
Simultaneously, the company is on track to monetise 2.7 GW in renewable energy assets through a private InvIT.
The transfer of assets to the InvIT will allow the company to churn capital and reduce net debt substantially, it added.
To further bolster the capital structure, the promoters have infused Rs 2,600 crore through preferential allotment which has been used for reducing debt.
Source: Press Trust of India