Tata Power Q2 FY24 results: Net profit up 9% YoY at Rs 1,017 crore

Tata Power Company Ltd on Wednesday recorded a growth in its profit for the 16th consecutive quarter. The company said consolidated PAT (profit after tax) during the quarter ended on September 30 this year (Q2 FY24) grew by 9 per cent to Rs 1,017 crore on a year-on-year (YoY) basis. Revenue also rose by 9 per cent to Rs 15,442 crore, YoY, largely driven by higher revenue from core businesses of generation, transmission and distribution.

During the quarter, Tata Power said a significant 84 per cent contribution in the company's PAT came from the core businesses, while the contributions from overseas joint ventures, including coal mining operations, continued to decline.

"With net debt to underlying EBITDA improving to 2.65x (from 2.73x in Q1 FY24) and net debt to equity improving to 1.02x (from 1.09x in Q1 FY24) during the quarter, the company's balance sheet continues to strengthen," Tata Power stated.

Q2 FY24 EBITDA (Earnings before interest, taxes, depreciation, and amortization) jumped 51 per cent to Rs 3,087 crore, resulting in an all-time high H1 EBITDA of Rs 6,092 crore.

"We are constantly focusing on new areas of growth such as our Greenfield solar cell and module manufacturing plant in Tamil Nadu which has produced its first module in this quarter and is on track to roll out the first cell into Q4 FY24," said Praveer Sinha, CEO and Managing Director of Tata Power.

The company said its clean energy portfolio achieved the milestone of 5,500 MW during Q2 FY24, standing at 38 per cent of total installed generation capacity.

Tata Power said it also made significant progress in its distribution business by improving its cash flow and reducing AT&C losses in Odisha.

Further, the company mentioned that it has received all the pending sale proceeds of Arutmin Coal Investment, as per the earlier arrangement to divest its stake in 2016.

The results were announced post-market hours today. The stock settled with 2.06 per cent gains at Rs 254.90.

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