Tata Power Q3 PAT Surges 22% at Rs 318 Cr; Repays Rs 4,150 Cr Bank Loan of CGPL

Utility giant Tata Power has reported a rise of 22 per cent in its consolidated net profit after tax (PAT) at Rs 318 crore, before exceptional items at Rs 346 crore, in Q3 FY21, on the back of interest cost saving wrt debt reduction of Coastal Gujarat Power Ltd (CGPL), better performance in Mundra and steady operational 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 aggregating 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 (includes regulatory income/expenses) stood at Rs 7,740 crore, against Rs 7,171 crore in the corresponding quarter 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 mainly due to execution of new and held up EPC projects.

Commenting on the company’s performance, Dr. Praveer Sinha, CEO & Managing 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 electricity in Odisha’s five circles of WESCO and six circles of SOUTHCO. Letter of intent for acquiring 51 per cent shareholding in five circles of NESCO has been received from Odisha Electricity Regulatory Commission (OERC).”

On the company’s focus areas and profitability, Sinha added that, “as the company’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.”

On the renewable front, he further said, “our solar EPC business continues to grow. During this quarter, Tata Power Solar booked 153 MW of new solar/hybrid bids and the solar EPC order book stands at Rs 10,608 crore. Also, we have installed over 300 public EV charging points and the geographical presence has expanded to 40 cities. We are confident of monetizing our Renewable Energy assets through an InvIT. This will give us the necessary capital for investing in growth as also reduce our debt substantially.”