Tata Power on Thursday reported 22 per cent year-on-year increase in consolidated net profit for October-December quarter at Rs 318 crore on debt reduction, better performance of Mundra plant and steady operational performance across all businesses.
The company's revenue rose 7.5 per cent to Rs 7,598 crore during the December quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 1 per cent to Rs 1,997 crore from Rs 1,970 crore in the year-ago quarter.
On a standalone basis, Tata Power's net profit jumped to Rs 575 crore from Rs 7 crore in October-December 2019, mainly due to higher dividend income from overseas companies. However, revenue declined 14.1 per cent to Rs 1,658 crore.
Coastal Gujarat Power Ltd (CGPL), a subsidiary of the company, repaid the entire bank loan aggregating to Rs 4,150 crore. Post this repayment, CGPL's long-term debt comprises only Rs 3,790 crore of bonds and debentures, Tata Power said in a release.
"The company completed acquisition of 51 per cent equity shares of TP Southern Odisha Distribution Ltd (TPSODL) and TP Western Odisha Distribution Ltd (TPWODL) respectively with balance 49 per cent being held by GRIDCO Ltd (an Odisha government undertaking). The joint ventures will respectively manage the distribution and retail supply of electricity in Odisha's six circles of SOUTHCO consisting of Ganjam City, Berhampur, Aksa, Bhanjanagar, Jeypore and Rayagada and five circles of WESCO consisting of Rourkela, Burla, Bhawanipatna, Bolangir and Bargarh, for a period of 25 years effective January 1, 2021," it said.
Besides, the company has also received Letter of Intent for acquiring 51 per cent stake in a fourth discom in Odisha - NESCO. With this, the company will cover the entire state of Odisha.
Commenting on the results, the company's CEO and Managing Director Praveer Sinha said, "Tata Power's focus now lies in demonstrating a benchmark performance through all our existing generation, transmission and distribution businesses while continuing to concentrate on key growth areas, i.e. renewables, distribution business and new businesses of rooftop solar panels, and EV (electric vehicle) charging."
The company is bullish on its renewables business and said its solar engineering, procurement and construction (EPC) business continues to grow.
During the quarter, Tata Power Solar booked 153 MW of solar/hybrid bids and the company's solar EPC order book stood at Rs 10,608 crore. It has also installed over 300 public EV charging points, with the geographical presence expanding to 40 cities.
"We are confident of monetising our renewable energy assets through an InvIT. This will give us the necessary capital for investing in growth as also reduce our debt substantially," Sinha said.
Shares of Tata Power on Thursday closed 6.47 per cent higher at Rs 89.65 on the BSE.