Tata Power Co.'s consolidated net profit rose 4% in the first quarter of fiscal 2025, beating analysts' estimates.
The power producer's profit increased to Rs 1,188.63 crore in the June quarter, according to an exchange filing on Tuesday. That compares with the Rs 957.2-crore consensus estimate of analysts tracked by Bloomberg.
The energy giant also proposed an acquisition of 40% equity stake in Khorlochhu Hydro Power at an acquisition cost of Rs 830 crore.
Tata Power Q1 FY25 Highlights (Consolidated, YoY)
Revenue up 13.7% to Rs 17,293.62 crore versus Rs 15,213.29 crore (Bloomberg estimate: Rs 16,855.39 crore).
Ebitda up 22% to Rs 3,586.66 crore versus Rs 2,943.59 crore (Bloomberg estimate: Rs 3,004 crore).
Ebitda margin expanded 20.7% versus 19.3% (Bloomberg estimate: 17.8%).
Net profit up 4% to Rs 1,188.63 crore versus Rs 1,140.97 crore (Bloomberg estimate: Rs 957.23 crore).
What Drove Growth?
According to Tata Power, Q1 FY25 net profit was its 19th consecutive quarter of growth. In its press release, the company attributed it to its strong performance and execution excellence across its business of generation, transmission and distribution, and renewables. These businesses contributed 84% of the net profit as compared to 72% a year ago.
Capacity And Order Pipeline
Tata Power's transmission and distribution capacity stood at 14.96 GW, as of Q1 FY25. Out of this, 41% or 6.1 GW comprised the company's clean and green installed capacity. Further, the company also has 5.29 GW of renewable capacity under construction, as it aims to achieve 100% of clean and green power generation by FY45.
Solar Segment
Tata Power's solar utility EPC order book stood at over Rs 13,018 crore as of Q1 FY25, after the company won orders of 2,225 MW worth Rs 931 crore during the quarter.
The company's group captive order book stands at Rs 2,054 crore, while its third-party rooftop order book stands at Rs 567 crore as of Q1 FY25. The company states that it is well-poised to garner 20% market share in the residential rooftop segment, on the back of its new solar manufacturing facility and strong pan-India channel partner network.
Solar Module
The company has also commenced solar module production at its newly built 4.3 GW solar module and cell manufacturing plant in Tamil Nadu.
The unit produced 600 MW of modules and generated Rs 1,000 crore revenue in its first quarter of operations and a profit of Rs 54 crore in Q1 FY25.
Cell production is set to start in August.
About The Acquisition
Tata Power has proposed to invest Rs 830 crore to acquire 40% stake of Khorlochhu Hydro Power Ltd.
The object of the acquisition is to help with the development of the 600 megawatt Khorlochhu Hydropower Project in Bhutan, with an investment of Rs 6,900 crore. According to the company, the project can help Tata Power with its clean and green energy transition.
The company aims to complete the first tranche of the acquisition in 6 months, and post-acquisition, Khorlochhu Hydro Power will become an associate company of Tata Power.
Capex
The company spent Rs 4,000 crore in capex in Q1 FY25 and plans to spend a total of Rs 20,000 crore in FY25.
"We are committed to adopting and leading the new and emerging clean energy technologies, including pumped hydro projects, hydropower project in Bhutan, and opportunities to develop small modular nuclear reactors as government policy evolves," said the company in its press release.
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