Tata Power’s Q2 FY19 consolidated profit after tax (PAT) was up 85 percent at ₹3.93 billion (~$53.53 million) as compared to ₹2.13 billion (~$29.01 million) in the previous year. Standalone PAT stood at the previous quarter due to higher renewables, lower finance cost, lower taxes and a favorable Regulatory order impact, according to the company.
The company’s Q2 FY19 consolidated revenue rose to ₹72.34 billion (~$0.99 billion) as compared to ₹66.10 billion (~$0.90 billion) in the corresponding period last year, mainly due to a capacity addition in renewables, increase in fuel cost, and an increase in shipping tonnage. Standalone revenue was up at 9 percent at ₹19.22 billion (~$0.26 billion) compared to ₹17.69 billion (~$0.24 billion) in the corresponding period last year.
Tata Power’s consolidated business EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization), including joint venture companies stood at ₹26.68 billion (~$0.36 billion) in H1 FY19.
The company’s H1 FY19 consolidated PAT was up 244 percent at ₹21.28 billion (~$0.29 billion) as compared to ₹6.18 billion (~$84.16 million) in the same period last year. Revenue was also up 13 percent at ₹ 143.73 billion (~$1.96 billion) as compared to ₹127.75 billion (~$1.74 billion) in the same period last year.
Tata Power’s renewables business profits for Q2 FY19 stood at ₹1.59 billion (~$21.65 million).
The company emphasised that good performance in the renewable industry is one of the main reasons for the 85 percent percent rise in Q2 FY19 consolidated PAT. Tata Power Solar’s recently launched complete residential rooftop solution was one of the key business and growth highlight of Q2 FY19.
For the Quarter ended September 30, 2018, standalone revenue was up by 9 percent at ₹19.22 billion (~$0.26 billion) as against ₹17.69 billion (~$0.24 billion) due to higher fuel cost and favourable tariff order.
PAT stood ₹2.65 billion (~$36.90 million) compared to ₹520 million (~$7.80 million) in Q2 FY18. This was due to a higher wind plant load factor, a lower finance cost, lower taxes, and a favorable Mumbai operations tariff order.
Commenting on the development, Praveer Sinha, the CEO of Tata Power, said, “Our growth agenda now is more focused on renewables, rooftop solar solutions and using the resurgent power platform to acquire value adding assets.”
He added, “In the coming years, we have identified key growth areas which includes renewable generation, transmission, and distribution along with new value-added businesses including rooftop solar, smart metering, home automation, micro grids in rural areas and setting up of electric vehicle charging units.”
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Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer