Tata Power's consolidated revenue stood at Rs 6,881 crore as compared to Rs 7,597 crore in the corresponding quarter last year.
Tata Power on Tuesday posted a two-fold jump in its consolidated net profit to Rs 475 crore in the January-March quarter compared to the year-ago period.
The company’s consolidated net profit was Rs 172 crore in the quarter ended on March 31, 2019, a company statement said.
“PAT (profit after tax or net profit) was up 177 per cent at Rs 475 crore as against Rs 172 crore due to gain on sale of Cennergi investment offset by impairment provision in SED & reversal of MAT Credit due to transition to new tax regime in the renewables business,” the company explained in the statement.
Tata Power’s consolidated revenue stood at Rs 6,881 crore as compared to Rs 7,597 crore in the corresponding quarter last year mainly due to delay in project execution in solar EPC (engineering procurement and construction) business on account of COVID19, lower power demand and lower coal price, it said.
“Tata Power Group’s FY’20 revenue stood at Rs 28,948 crore as compared to Rs 29,984 crore last year mainly due to lower power demand, delay in project execution in solar EPC business on account of COVID 19 and lower coal prices”, it added.
The consolidated net profit stood at Rs 1,316.44 crore in 2019-20 as against Rs 2,605.66 crore in the previous fiscal year.
The board has declared a dividend of Rs 1.55 per share.
Commenting on the performance, Praveer Sinha, CEO & MD, Tata Power said in the statement, “All our businesses and operations have performed exceptionally well. Our robust performance is supported by excellent performance of renewable business & capacity addition.”
About impact of lockdown, he said, “We are witnessing a drop in demand by almost 30 per cent compared to 2019 in our distribution businesses. Though this impacts our topline, almost all Tata Power’s assets are under either regulated businesses or through fixed price long term contracts on take or pay basis. Thus in our business, the return profile covers our fixed costs and provides us assured returns.”
“The company’s divestment plans remain on track with a closure of the Cennergi transaction earlier in April with Rs 842 crore realised from this sale including hedging gain.”
The company is in advanced discussions to execute sale agreement for another overseas asset, he said.
In addition, there is good progress on closing the sale of defence business in this quarter.
“The divestment in Zambia hydro project is also expected to be completed by December. The company is confident of meeting their divestment target this year. The restructuring of Renewable businesses including setting up the vehicle for their growth is well on track to closure.”