Tata Power has announced its annual results for FY 2018-19. The company’s income statement shows that its consolidated FY19 revenue was up 12% at ₹294.93 billion (~$4.25 billion) as compared to ₹264.3 billion (~$3.81 billion) last year.
The company’s consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) stood at ₹67.5 billion (~$970 million), representing an increase of about 7% from the previous year. The company reported a consolidated profit after tax (PAT) of ₹24.4 billion (~$352 million) for FY 19.
For the fourth quarter (Q4) of FY19, the consolidated PAT before exceptional item stood at ₹2.59 billion (~$37.5 million), up 119% from ₹1.18 billion (~$17 million) in the previous year. EBITDA for the quarter was up 35% at ₹18.79 billion (~$271 million).
However, the company reported a massive 92% drop in consolidated net profits at ₹1.07 billion (~$15.4 billion) for the quarter ended March due to an exceptional adjustment in the previous year.
According to Tata Power, its renewable energy business continues to grow with Q4 FY19 EBITDA increasing by 34% on a quarter on quarter (QoQ) basis to ₹6.06 billion (~$87.4 million) with higher operational revenues and engineering procurement and construction (EPC) volume. The company stated that its EPC order book stood at ₹16 billion (~$231 million) for the year, out of which solar EPC accounted for around 13.6 billion (~$196 million).
Commenting on Tata Power’s performance, Praveer Sinha, CEO of Tata Power said, “All our subsidiaries and plants have reported robust performance despite sectoral challenges. The company continues to focus on growth in new businesses. Our renewable business added capacity of 200 MW and another 400 MW is currently in pipeline. Our solar EPC business possesses a healthy order book of ₹13.60 billion (~$196 million). We have launched solar rooftop solutions in several cities across the country and set up 65 EV charging stations.”
The company also stated that it completed its 100 MW Pavagada Solar Park project in Karnataka in Q4. Further, Tata Power Solar, a solar focused subsidiary of Tata Power launched a complete residential rooftop solution in Gandhinagar, Kochi, Chennai, Chandigarh, Hyderabad, Guwahati and Kolkata. Tata Power is expected to focus more on the renewable energy side of the business in the future.
Mercom recently reported that the company has announced that it will not build any new coal-fired power project in the future and majority of its power capacity expansion will happen through renewable energy. This development was noted by the Institute of Energy Economics and Financial Analysis (IEEFA) in its report ‘Tata Power: Renewables to Power Growth.
Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power announced that its revenue for FY19 grew by around 47% to ₹7.15 billion (~$10.32 million) but net profits declined by 52% to around ₹900 million.
“It’s been our endeavor to grow our renewable energy footprint across the country and set new benchmarks for operational efficiencies. Moving forward, the key growth areas identified for the Company include renewables, transmission, distribution and value-added businesses including Rooftop Solar, Smart Metering, EV charging stations and microgrids in rural areas.” Sinha added.
According to Mercom’s India Solar Project Tracker, the company has over 1,595 MW of solar projects in operation across the country while another 250 MW worth of projects are in the pipeline.
Recently, Mercom reported on the news of TPREL announcing the sale of 32 MW capacity of its operating wind assets located in Satara district of Maharashtra.
In January 2019, Tata Power had reported a consolidated profit after tax of ₹2,050 million (~$28.9 million) in the third quarter of FY 2018-19. When compared to the consolidated PAT in Q3 2017-18, it was a decline of approximately 67%. In Q3 FY 2017-18, Tata Power’s PAT stood at ₹6,280 million (~$88.5 million). The decline was attributed to lower profits from the company’s coal business as Tata Power’s renewable business during Q3 FY 2018-19 proved to be good.