Tata Power's Q2 profit rises 8.8% YoY to Rs. 1,017cr
Tata Power has announced an 8.8% year-over-year (YoY) increase in its consolidated net profit for Q2 FY24, reaching Rs. 1,017 crore. This growth is due to enhanced operational performance and increased revenues across the company's primary businesses. The firm's operational revenue experienced a 12% YoY surge, amounting to Rs. 15,738 crore, while its total income climbed to Rs. 16,029.54 crore. Tata Power's EBITDA witnessed a remarkable 76% YoY growth, totaling Rs. 3,090 crore.
Profit after tax increases for the 16th consecutive time
The company's profit after tax (PAT) has risen for the 16th consecutive time in Q2 FY24. Tata Power's fundamentals continue to be strong, with core businesses recording their highest-ever EBITDA in the first half of this fiscal year. In an investor presentation, Tata Power disclosed that it canceled projects worth Rs. 1,158 crore due to unfavorable economics but maintains a manageable debt position for ongoing growth.
CEO Praveer Sinha highlights new areas of growth
Tata Power CEO and MD Praveer Sinha highlighted the company's commitment to exploring new growth opportunities, such as the Greenfield solar cell and module manufacturing plant in Tamil Nadu. The plant produced its first module this quarter and is on schedule to launch its first cell in Q4 FY24. Sinha attributed the company's consistent profit growth to financial discipline, operational excellence, business resilience, and diversification across all business sectors.
Clean energy portfolio and distribution business progress
In Q2 FY24, Tata Power's renewable energy portfolio achieved a major milestone of 5,500MW, representing 38% of its total installed generation capacity. The company made major progress in its distribution business by enhancing cash flow and reducing AT&C losses in Odisha. Tata Power is also well-positioned to benefit from pumped hydro storage projects, having signed an MoU with the Maharashtra government for the development of a 2,800MW project. Tata Power's stock settled 2.06% higher at Rs. 254.95 apiece on NSE.
