Tata Power registers robust 29% growth in Q1 FY24

Tata Power, a stalwart in the Indian power sector, revealed a commendable net profit growth of 29% amounting to ₹ 1,141 crore for Q1 FY24. The firm’s streak of net profit growth continues unabated for the 15th successive quarter (Year-on-Year). This rise is corroborated by consistent growth in consolidated revenue and EBITDA, with the latter witnessing a 43% surge, reaching ₹ 3,005 crore. Moreover, consolidated revenue for this period stood impressively at ₹ 15,003 crore. This robust financial display is attributed to a sustained growth trajectory across all its business segments.

Tata Power Continues Profit Streak for 15th Consecutive Quarter. Photo courtesy of Ameyajkamat/Wikimedia Commons.

Key Financial Metrics of Tata Power Unveiled: Q1 FY24 Vs Q1 FY23

• EBITDA saw a leap by 43% to ₹ 3,005 crore, influenced by positive regulatory decisions in Maithon Power Limited and lower under recovery in Mundra Plant.
• A modest 2% ascent in consolidated revenue resulted in a sum of ₹ 15,003 crore, propelled by capacity addition in renewables and higher sales across Distribution Companies.
• The reported PAT increased by 29% to ₹ 1,141 crore, underpinned by consistent strong performance across all sectors.
• Prior to exceptional items, the PAT grew by 3% to ₹ 906 crore.
• The exceptional item for the period was ₹ 235 crore, which was a result of the deemed gain from diluting stake in Tata Projects.

Renewable Initiatives Shape Business Trajectory

Tata Power’s unwavering commitment to spearhead the green energy transition is evident from its recent endeavors. The company inked an MoU with the Maharashtra Government to establish 2,800 MW of Pumped Hydro Storage Projects, thus bolstering its renewables footprint. This strategic move ensures a consistent power supply, backed by renewable solar and wind projects. The company’s dedication to green energy is further exemplified by securing projects totaling 1,214 MW in Q1FY24 and commissioning 184 MW of renewable energy ventures. An order book showcasing a diversified utility scale and valued at ₹ 17,643 crore further underscores this commitment.

CEO & MD’s Take on Tata Power’s Performance

Dr. Praveer Sinha, the CEO & MD of Tata Power, acknowledged the company’s commendable performance, attributing it to effective strategies, operational prowess, and a dedicated workforce. He elaborated on the company’s roadmap, with an ambitious capex plan of nearly ₹12,000 crore for the current fiscal year, emphasizing its focus on green energy transition and exploring avenues in the transmission and distribution domain.