Tata Power Company on Friday reported a 12.22% year-on-year (YoY) increase in operating profit or earnings before interest tax and depreciation (Ebitda) to Rs 1,869 crore for the January-March quarter of 2022. The profitability was largely led by higher sales.
Revenue from operations for Q4FY22 rose over 15% YoY to Rs 11,960 crore on better performance from the renewable and transmission segment. The operating margins in Q4FY22, however, dipped marginally by 38 basis points on year to 15.62% from 16% a year ago.
While revenue from power generation segment fell in Q4FY22 to Rs 3,021.84 crore from Rs 3,238.24 crore a year ago, the revenue from renewables and transmission segment grew on higher offtake.
Renewable segment revenue was up at Rs 2,845 crore from Rs 2,692 crore a year ago, the transmission segment revenue rose to Rs 7,127 crore from Rs 5,146 crore a year ago.
Net profit for Q4FY22 adjusted for the one-off loss on impairment for the sale of strategic engineering division last year rose 31.41% on year to Rs 632.37 crore. The company said in its P&L noted that, it sold Strategic Engineering Division business to Tata Advanced Systems last year and recognised Rs 468 crore as contingent consideration based on future expected orders. In March quarter, the company reassessed the fair value of the consideration and recognised an impairment loss of Rs 468 crore as exceptional item.
Praveer Sinha, CEO & MD, Tata Power, said, “We ended FY22 on a high note, with our 10th consecutive quarter of PAT growth, fuelled by broad-based growth across all our business clusters comprising generation, transmission, distribution including Odisha and renewables. Our proven track record in the renewable energy space has attracted reputed global investors (BlackRock Real Assets and Mubadala) to join us in speeding up India’s transition to green energy”.
“We are well poised to manage the increasing energy demand due to extreme weather patterns through optimal generation, efficient transmission and distribution complemented by robust renewable energy growth,” Sinha added.
Tata Power debt to equity ratio in March quarter of 2022 grew 2 times from 1.88 times a year ago, while the debt service coverage ratio increased to 0.82 times from 0.66 times a year ago.