Tata Power is looking to double its profit and revenue in the next three years with the major focus on renewable energy, chief executive and managing director Praveer Sinha said on Tuesday.
“We will double our revenues and PAT (profit after tax) by FY27,” he told reporters at the company’s Bhivpuri power plant near Mumbai. Sinha said the company is expecting a profit of over Rupees 4,000 crore and expects revenues to cross Rupees 60,000 crore in FY24.
The company posted a PAT of Rupees 2,158 crore on revenue of Rupees 30,446 crore in H1FY24. It had posted a PAT of Rupees 3,810 crore on revenue of Rupees 56,033 crore in FY23.
“In revenues, what we used to do in a full year, we are doing in half a year. In PAT, what we were doing in a year, we are doing it in a quarter,” he said.
Every quarter, the company is seeing improvement in numbers and it will do much better in the coming quarters , Sinha added. Renewable push The company has earmarked a capex of Rupees 60,000 crore till FY27 and will deploy 45% of it in clean energy projects.
“About 4000 MW (megawatt) is under various stages of construction which will be completed in 24 months,” Sinha said.
He further said by 2030, 70% of the company’s capacities will be clean energy and by 2045, 100% will be clean energy. Currently, 40% of its capacities are in clean energy.
The company has 5500 MW of clean energy now, including 3200 MW of solar and 1000 MW of wind and 1300 MW of hydel power. The capacities are expected to reach 9500 MW in the next 24 months.
The company is building a 1000 MW pumped hydro storage project in Bhivpuri and another similar of 1800 MW in Shirota near Pune. The company will invest Rupees 13,000 crore for both the projects.
“We will do it in a debt-to-equity ratio of 70:30,” Sinha said. “Bhivpuri will be operational by mid-2027 and Shirota by 2028,” he added. The company is also exploring generation of 9 GW (gigawatt) of power in existing reservoirs.
On transmission projects, Sinha said the company will bid for more such projects which can be built on time and generate returns aimed by the company.