Tata Power Q3 Results: Profit Rises 2.3%, Beats Estimates

Tata Power Co.'s third-quarter profit increased, beating analysts' estimates.

The power producer's consolidated net profit rose 2.27% year-on-year to Rs 1,076.12 crore in the quarter ended December, according to an exchange filing. That compares with the Rs 895.2-crore consensus estimate of analysts tracked by Bloomberg.

• Revenue up 3.69% at Rs 14,651 crore (Bloomberg estimate: Rs 15,636.04 crore).

• Ebitda up 3.53% at Rs 2,417.42 crore (Bloomberg estimate: Rs 2,867.48 crore).

• Margin narrows 2 bps to 16.5% vs 16.52% (Bloomberg estimate: 18.3%).

• Net profit up 2.27% at Rs 1,076.12 crore (Bloomberg estimate: Rs 895.2 crore).

The company saw higher realisation as its core business contributed to more revenue and profit in the third quarter, as compared with non-core businesses in the earlier quarters.

"We saw better contribution from our renewable and transmission business this quarter," said Praveer Sinha, managing director and chief executive officer of Tata Power, in a conference call.

"We expect the trend to continue in the coming quarters as our dependence on imported modules will go down with full commissioning of our 4 GW module plant in Tamil Nadu," Sinha said.

The company has started production from the 4 GW module manufacturing plant in Tamil Nadu. As of now, the company is producing 3 GW modules and work on the fourth GW is going on, Sinha said. The fourth GW will get operational in the next two weeks, he said.

"Construction activity at the 3 GW cell plant is in full swing and we expect to start production from April, while the plant will be fully stabilised by June-July next year," Sinha said.

The cells and modules produced will be largely used for the company's own utility scale projects and rooftop solar projects.

The company also sees strong potential from the PM Suryodaya rooftop solar scheme for 1 crore families, announced by the PM on Jan. 22.

Tata Power is developing a green energy transmission corridor, after it won its first-ever project under the Tariff-Based Competitive Bidding process during the quarter.

The company won the bid to develop an Interstate Transmission System- Bikaner III Neemrana II Transmission Ltd., that will be developed in 24 months, the company said in a statement.

As of Dec. 31, 2023, Tata Power's total operational capacity was 4,270 MW in the renewables segment. Another 4,752 MW of projects under Tata Power Renewable Energy Ltd. and 4,120 MW of projects under Tata Power Solar Systems Ltd. are under execution, thus taking the total clean energy capacity to over 10,000 MW in the next 12-24 months, it said.

Tata Power targets to get around 70% of its generation capacity to come from non-fossil-based fuels by 2030, from 39% at present.