Tata Power Announces Fourth Quarter Results

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Tata Power, Indian electric utility company announced its results for the quarter ended 31st March 2020.(FY2019-20)

PERFORMANCE HIGHLIGHTS:

CONSOLIDATED

For the Quarter ended March 31st, 2020:

Tata Power’s consolidated Revenue stood at ₹6,881 crore as compared to ₹7,597 crore in the corresponding quarter last year mainly due to delay in project execution in solar EPC business on account COVID19, lower power demand and lower coal price.

EBITDA for the quarter was up 6% at ₹2,013 crore as compared to ₹1,901 crore in Q4FY19 mainly due lower losses in Mundra on account of lower FOB price of coal. PAT was up 177% at ₹475 crore as against ₹172 crore due to gain on sale of Cennergi investmentoffset byimpairment provision in SED & reversal of MAT Credit due to transition to new tax regime in the renewables business. 

The Company’s PAT before Exceptional Items for the quarter was ₹366 crore as against ₹323 crore.

For the Financial Year ended March 31st 2020:

Tata Power Group’s FY20 Revenue stood at ₹28,948 crore as compared to ₹29,984 crore last year mainly due to lower power demand, delay in project execution in solar EPC business on account of COVID 19 and lower coal prices.

PAT stood at ₹1,231 crore as against ₹1,274 crore in previous year.

Renewable business crossed 2,637 MW capacity mark. During the year, the Company also added 318 MW.

Balance sheet strengthening efforts continue. Despite over ₹2,226 crore capex during the year, Net Debt reduced by ₹1,300 crore with further improvement expected from sale of non-core assets and other initiatives. Debt Equity level is down to 2.0 and is expected to go down further

STANDALONE

For the Financial Year ended March 31st 2020:

Revenue stood at ₹7,075 crore as compared to ₹8,109 crore last year

PAT for FY20 stood at ₹148 crore as compared of ₹1,769 crore to FY19

EBITDA for FY20 stood at ₹2,853 crore as against ₹3,312 crore in the previous year

For the Quarter ended March 31, 2020:

Standalone Revenue stood at ₹1,653 crore as against ₹2,134 crore. EBITDA stood at ₹587 crore as against ₹712 crore. Loss stood at ₹310 crore as compared to Profit of ₹69 crore in Q4 FY19

Commenting on the Company’s performance, Mr. Praveer Sinha, CEO & MD, Tata Power said“All our businesses and operations have performed exceptionally well. Our robust performance is supported by excellent performance of renewable business & capacity addition.

India is in a war-like situation in its fight against COVID-19. Taking stock of the situation, we mobilised our business continuity plan to provide uninterrupted power supply to ensure that citizens continue to comfortably work from home while medical staff, law enforcement agencies and other essential services continue to serve the nation.

Globally, India is following one of the most stringent lockdowns with all economic activities coming to a halt for nearly two months now. We are witnessing a drop in demand by almost 30% compared to 2019 in our distribution businesses. Though this impacts our topline, almost all Tata Power’s assets are under either regulated businesses or through fixed price long term contracts on take or pay basis. Thus in our business the return profile covers our fixed costs and provides us assured returns.”

The Government of India has already announced a  liquidity package to Discoms through PFC and REC and  the generating companies will be the biggest beneficiary of this liquidity package, as it is expected to clear the old overdues of GENCOs by DISCOMs  This will improve the liquidity conditions for Gencos, which have been impacted  by the huge receivables.

Another welcome move by the Government was to clarify the must-run status of renewable energy projects and payments to renewable energy generators to be made on regular basis by the discoms.

The Company’s divestment plans remain on track with a closure of the Cennergi transaction earlier in April with `842 crore realised from this sale including hedging gain. The company is in advanced discussions to execute sale agreement for another overseas asset. In addition, they is good progress on closing the sale of Defense business in this quarter. The divestment in Zambia hydro project is also expected to be completed by December. The company is confident of meeting their divestment target this year. The restructuring of Renewable businesses including setting up the vehicle for their growth is well on track to closure.

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