Informist, Wednesday, Oct. 30, 2024

By Jahanvi Kothari

MUMBAI – Tata Power Co. Ltd. Wednesday posted lower-than-expected earnings for the September quarter. The company's consolidated net profit for the September quarter rose 5.8% on year to INR 9.27 billion from INR 8.76 billion. Analysts had expected the company's bottom line to be INR 11.42 billion, according to an average of estimates from six brokerages, up 30% on year and 18% sequentially.

Revenue from operations for the quarter fell marginally by 0.3% on year to INR 156.98 billion from INR 157.38 billion. Analysts had expected the company's top line to grow by 13.7% on year and 3.5% sequentially. Sequentially, the net profit was down 4.6% and revenue was down 9.2%. The company's other income rose by 76% on year to INR 5.13 billion.

For Apr-Sept, the company reported a consolidated net profit of INR 18.97 billion, up 2.7% from INR 18.48 billion a year ago. For the half year, the company reported a consolidated revenue of INR 329.91 billion, up 6.6% from INR 309.51 billion a year ago.

In Jul-Sept, total expenditure was INR 140.83 billion compared to INR 147.55 billion a year ago. Finance cost was INR 11.43 billion, down from INR 11.82 billion a year ago. The cost of power purchased by the company in the September quarter was INR 55.33 billion, down 1% on year. The cost of fuel was INR 28.72 billion, down 20% on year. The company said the cost of raw materials and construction cost for the latest quarter was INR 5.22 billion, down 49% from a year ago. The company spent INR 10.41 billion on employee benefits. Other expenses of the company were INR 16.21 billion, up 30.4% from a year ago.

The tax outgo for the September quarter was INR 6.8 billion, more than triple the INR 2.1 billion a year ago. The company said deferred tax for the quarter was INR 2.6 billion, more than double the INR 916.6 million a year ago. Deferred taxes were up 188% on year and up 119% sequentially.

Tata Power said it had incurred a one-time cost of INR 1.40 billion in the September quarter due to the stamp duty payable for the merger of Walwhan Renewable Energy Ltd. with TP Wind Power Ltd. and also for the merger of Tata Power Solar Systems Ltd. and Chirasthaayee Saurya Ltd. with Tata Power Renewable Energy Ltd.

As of Sept. 30, the company's net debt was up on quarter at INR 435.8 billion from INR 424.7 billion a year ago due to higher capital expenditure requirements. The company incurred capital expenditure of INR 52 billion in the September quarter. For Apr-Sept, the company said it had spent INR 91 billion of its capital expenditure target of INR 200 billion for the current financial year.

The company's consolidated earnings before interest, taxes, depreciation, and amortisation was INR 38.08 billion, up 23% from a year ago. The board of the company has approved an investment of INR 56.66 billion for capacity expansion of 1,000 MW of pumped storage hydro project at Bhivpuri in Maharashtra. The company said its overall capacity stands at 15.2 gigawatts. Work on the capacity expansion is expected to start by January 2025.

The company's transmission portfolio is 7,049 circuit km, including 2,416 circuit km in pipeline. The company reported an order book of INR 152.6 billion at the end of the September quarter, up 1.3% from INR 150.1 billion at the end of the June quarter. On Wednesday, shares of Tata Power ended at INR 427 on the National Stock Exchange, up 0.4% from the previous close. End

Edited by Ashish Shirke

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