Earnings Review
Tata Power Oct-Dec PAT growth highest in 3 quarters
This story was originally published at 18:58 IST on 4 February 2025
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--Tata Power Oct-Dec consol net profit INR 10.31 bln
--Analysts saw Tata Power Oct-Dec consol net profit INR 10.58 bln
--Tata Power Oct-Dec consol net profit INR 10.31 bln vs INR 9.53 bln yr ago
--Tata Power Oct-Dec consol revenue INR 153.91 bln vs INR 146.51 bln yr ago
--Tata Power Apr-Dec consol net profit INR 29.28 bln vs INR 28.01 bln yr ago
--Tata Power Apr-Dec consol revenue INR 483.82 bln vs INR 456.02 bln yr ago
--Tata Power Oct-Dec consol EBITDA INR 34.81 bln vs INR 32.50 bln year ago
By Akshay V. Johnson
MUMBAI – Tata Power Co. Ltd. reported an on-year growth in both net profit and revenue for the December quarter, with the net profit growth being the highest in three quarters. The increase in the top line and bottom line was despite a 37% on-year fall in other income at INR 4.02 billion. The growth in revenue and net profit was driven by robust growth in the renewable energy segment, strong execution by its solar power arm, and improved margins, Tata Power Solar Ltd.
The company reported a consolidated net profit of INR 10.31 billion for the December quarter, up 8% from INR 9.53 billion in the year-ago quarter. Analysts had estimated the company to report a net profit of INR 10.58 billion. The company's consolidated revenue for the quarter was INR 153.91 billion, up 5% from INR 146.51 billion a year ago. Analysts had estimated the company's revenue at INR 172.30 billion. Sequentially, the company's net profit was up 11%, but the revenue was down 2%.
Total expenses were down marginally on year at INR 142.49 billion. Power and fuel costs, which accounted for 56% of the company's total expenses, were at INR 79.59 billion for the December quarter, down 2% on year. The company's other expenses were up 14% on year at INR 16.85 billion, while employee benefit expenses rose 8% on year to INR 10.58 billion. The company's finance costs rose 7% on year to INR 11.70 billion.
For Apr-Dec, the company's net profit was INR 29.28 billion, up 5% on year, while the revenue was up 6% on year at INR 483.82 billion.
The company's consolidated earnings before interest, tax, depreciation, and amortisation was INR 34.81 billion for the December quarter. Analysts had estimated the company to report an EBITDA of INR 31.52 billion. The company's operating margin for the quarter improved to 15% from 13% a year ago, while the net profit margin improved to 8% from 7% a year ago. The company's tax outgo for the quarter fell 35% on year to INR 2.69 billion.
Tata Power's power generation segment reported a revenue of INR 49.25 billion for the December quarter, down marginally from INR 49.58 billion in the year-ago quarter. The company's power transmission and distribution business reported a revenue of INR 88.51 billion, up from INR 84.50 billion in the year-ago quarter.
The power transmission and distribution segment's net profit grew 7% on year to INR 3.7 billion in the December quarter. This was buoyed by the robust performance of the Odisha, Delhi and Mumbai distribution businesses, the company said in a press release. The company has a target of 10,500 circuit kilometres of capacity by 2029-30 (Apr-Mar) and the company has won four transmission bids valued at around INR 71 billion in the last 10 months. The company's installed thermal generation capacity stands at 8.9 gigawatt.
The solar manufacturing infrastructure segment reported a net profit of INR 1.12 billion in the December quarter on revenues of INR 13 billion. The 4 GW cell line at the Tirunelveli plant in Tamil Nadu is fully operational and an additional 300 megawatt TOPCon line is to be commissioned in the March quarter, the company said. The term TOPCon stands for tunnel oxide passivated contact and describes the specific structure of a solar cell. This is a solar cell technology that aims to increase solar panel efficiency.
The prices of solar cells and modules continue to decline, which is an upside for this segment. As of December, a solar module was priced at $0.09 per watt and a solar cell was priced at $0.04 per watt, the company said. As of Dec. 31, the company has set up 582 charging stations across India, with 5,500 public and captive charging points.
The company's renewables business reported a net profit of INR 2.14 billion, up 59% on year. The company's clean and green portfolio now has an installed capacity of 6.7 GW, and a pipeline of 10 GW, the company said. The company announced the results after market hours. On Tuesday, shares of the company closed at INR 362.05 on the National Stock Exchange, up 2% from the previous close. End
US$1 = INR 87.06
Edited by Avishek Dutta and Akul Nishant Akhoury
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