Representative image of the logo of Tata Power.
Credit: X/@TataPower
New Delhi: Tata Power on Wednesday posted a 9 per cent rise in its consolidated net profit to Rs 1,017.41 crore in the September quarter, mainly on the back of higher revenues from core business.
Its consolidated net profit was Rs 935.18 crore in the year-ago period, according to a regulatory filing.
Total income rose to Rs 16,029.54 crore in the July-September quarter from Rs 14,181.07 crore in the same period a year ago.
In a statement, the company explained that during the quarter, a significant 84 per cent contribution to the company's Profit After Tax (PAT) came from the core businesses, while the contributions from overseas joint ventures, including coal mining operations, continued to decline.
'We have reported yet another strong quarter of financial performance, driven by robust contributions from all our core business clusters. Our adherence to financial discipline, operational excellence along with business resilience and diversification have helped us in maintaining this consistent profit growth,' Praveer Sinha, CEO and Managing Director of Tata Power, said in the statement.
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 Q4FY24, he stated.
With net debt to underlying EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) improving to 2.65-fold (from 2.73x in Q1 FY24) and net debt to equity improving to 1.02-fold (from 1.09x in Q1 FY24) during the quarter, the company's balance sheet continues to strengthen, it stated.
The company's clean energy portfolio achieved the milestone of 5,500 MW during the second quarter of FY24, standing at 38 per cent of total installed generation capacity.
Tata Power also made significant progress in its distribution business by improving its cash flow and reducing AT&C losses in Odisha.
Further, it is well-poised to capitalise on the pumped hydro storage projects and has signed an MoU with the Maharashtra government for the development of 2,800 MW projects.
The company's Zambia unit (ITPC 120 MW hydro plant) resolved the PPA (Power purchase agreement) tariff issue with the Zambian State Utility (ZESCO) and has realised part of the pending receivable dues of USD 102 million from Zambia Electricity Supply Corporation.
Meanwhile, the company also received all the pending sale proceeds of Arutmin Coal Investment, as per the earlier arrangement to divest its stake in 2016.
The board has approved the appointment of Vispi S Patel as the company Secretary and Compliance Officer (Key Managerial Personnel) consequent upon the superannuation of Hanoz M Mistry (to retire on January 31, 2024), from February 1, 2024.
Tata Power is a leading integrated power company and has a diversified portfolio of 14,399 MW, spanning across the entire power value chain - from renewable and conventional energy generation to transmission & distribution, trading, storage solutions and solar cells and module manufacturing.