Tata Power posted a 9 per cent increase in its consolidated net profit in its financial earnings for the second quarter (Q2) of the current fiscal year on Wednesday. The Tata Group firm reported a consolidated net profit of Rs 1,017.41 crore in the quarter ended September in 2023-24 (FY24), against a consolidated net profit of Rs 935.18 crore logged in the second quarter of the 2022-23 fiscal year (FY23), revealed via an exchange filing.
The company reported a 13 per cent jump in its total income which stood at Rs 16,029.54 crore in the reported quarter in FY24, against Rs 14,181.07 crore logged in the corresponding quarter a year earlier.
The revenue of the firm increased by 9 per cent on a year-on-year (YoY) basis. The power producer’s revenue for Q2FY24 stood at Rs 15,442 crore, with the growth attributed to an increase in earnings from core businesses of generation, transmission, and distribution.
The company also stated that it witnessed a contribution of 84 per cent in the overall profit after tax from the core businesses during the quarter, while the share from its overseas joint ventures, including the coal mining operations, continued declining.
The firm revealed that its EBITDA jumped 51 per cent to Rs 3,087 crore in the quarter under review on a YoY basis. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is often used by companies as an alternative to net income to understand their finances better.
Commenting on the performance, Praveer Sinha, CEO and managing director for Tata Power, said, “We have reported yet another strong quarter of financial performance, driven by robust contribution from all our core business clusters.” The executive credited the consistent growth in profitability to the company’s business resilience and diversification.
“We are constantly focusing on new areas of growth such as our Greenfield solar cell and module manufacturing plant in Tamil Nadu which has produced its first module in this quarter and is on track to roll out the first cell into Q4FY24. We are continually taking significant strides in enabling green energy transition by supplying round-the-clock renewable energy with hybrid solar and wind plants along with Pumped Storage plants,” Sinha added.
The company reported that its clean energy portfolio reached the milestone of 5,500 MW during the reported quarter, accounting for 38 per cent of the overall installed generation capacity. “Tata Power also made significant progress in its Distribution Business by improving its cash flow and reducing AT&C losses in Odisha. Further, it is well-poised to capitalize on the Pumped Hydro Storage projects and has signed an MoU with the Maharashtra Government for the development of a 2,800 MW projects,” Sinha stated.
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