Energetica India Magazine January-February 2021

NEWS FINANCE Tata Power Q3 PAT Surges 22% at Rs 318 Cr; Re- pays Rs 4,150 Cr Bank Loan of CGPL Total Buys 20% Minority Stake in Adani’s Re- newable Energy Arm AGEL Utility giant Tata Power has reported a rise of 22 per cent in its consolidated net profit after tax (PAT) at Rs 318 crore, be - fore exceptional items at Rs 346 crore, in Q3 FY21, on the back of interest cost saving wrt debt reduction of Coastal Gu- jarat Power Ltd (CGPL), better perfor- mance in Mundra and steady operation- al performance across all businesses. The company’s consolidated net profit after tax stood at Rs 260 crore during the third quarter of FY20. Mumbai-headquartered company said that it had repaid the bank loan aggre- gating to Rs 4,150 crore of CGPL. Post this repayment, CGPL’s long-term debt comprises only Rs 3,790 crore of bonds and debentures. The company’s consolidated EBITDA was marginally up 1 per cent at Rs 1,997 crore, during Q3 FY21, as compared to Rs 1,970 crore in Q3 FY20. During the quarter under review, the company’s consolidated revenue (in- cludes regulatory income/expenses) stood at Rs 7,740 crore, against Rs 7,171 crore in the corresponding quar- ter last year mainly on account of Odisha Discom acquisition, the company said in its financial statement. The company said that its renewables business continues to grow with 30 MW added YTD FY21 with 1,247 MW under construction, and EBITDA grew to Rs 522 crore during Q3 FY21 from Rs 515 crore in Q3 FY20 up by 1 per cent main - ly due to execution of new and held up EPC projects. Commenting on the company’s perfor- mance, Dr. Praveer Sinha, CEO & Man- aging Director, Tata Power said that, “all our businesses and subsidiaries have reported a robust performance this quarter despite facing pandemic related challenges. We marked a new milestone for our distribution business by acquiring the distribution and retail supply of elec- tricity in Odisha’s five circles of WESCO and six circles of SOUTHCO. Letter of in- tent for acquiring 51 per cent sharehold- ing in five circles of NESCO has been received from Odisha Electricity Regula- tory Commission (OERC).” On the company’s focus areas and prof- itability, Sinha added that, “as the com- pany’s business is undergoing a huge transformation, we are restructuring our business model based on sustainable and profitable growth. With an intent to overcome our legacy issues, Tata Power has fully repaid the entire bank loan of CGPL aggregating to Rs 4,150 crore.” French energy major Total SE has ac- quired 20 per cent minority interest in conglomerate Adani Group’s renewable energy arm, Adani Green Energy Ltd (AGEL), by purchasing shares held by Gautam Adani-led Promoter Group. Earlier also Total invested in Adani Gas Ltd, city gas distribution business, asso- ciated LNG terminal business and gas marketing business, by acquiring 37.4 per cent stake in Adani Gas Ltd and 50 per cent stake in Dhamra LNG project. Besides, Total had also acquired 50 per cent stake in AGEL’s 2.35 GWac port - folio of operating solar assets and a 20 per cent stake in AGEL for a global in- vestment of USD 2.5 billion. Commenting on Total’s stake buy in AGEL, Gautam Adani, Chairman of Adani Group, said that, “we are delight- ed to deepen our strategic alliance with Total, a global energy major, and wel- come them as a significant shareholder in Adani Green Energy Ltd. We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in In- dia. We look forward to working togeth- er towards delivering India’s vision for 450 GW renewable energy by 2030.” “This agreement is an important step in our alliance with the Adani Group in India and our common vision and goals with respect to the importance of ac- cess to low carbon energy in India. Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties, which began with our first joint venture 2.3GW of renewable capacity. Given the size of the market, India is the right place to put into action/to deploy our energy transition strategy based on two pillars: renewables and natural gas,” said Patrick Pouyanné, CEO of Total SE. As on date, AGEL has more than 14.6 GW of contracted renewable capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development. 11 energetica INDIA- Jan-Feb_2021