Tata Power Announces Q2 FY 2020-21 results: Reaffirms Strong Operating Performance

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  • Q2 FY21 Consolidated PAT was up by 10% at Rs.371 crore due to all round performance. Q2 FY21 Consolidated Revenue was up by 15% at Rs.8,413 crore. Q2 Consolidated EBITDA up by 7% at Rs.2,276 Crore (PYQ Rs.2,124 Crore) mainly due to strong operating performance of all businesses.
  • H1 FY21 Consolidated PAT stood at Rs.639 crore up by 10% as compared to Rs.582 crore over H1 FY20. Consolidated Revenue was up by 1% at Rs.15,084 crore as compared to Rs.14,896 crore in the H1 FY20.

Key Financial Highlights: Q2 FY21 vs Q2 FY20

  • Consolidated PAT up by 10% at Rs.371 crore (PYQ Rs.339 crore)
  • Consolidated EBITDA up by 7% at Rs.2,276 Crore (PYQ Rs.2,124 crore)
  • Consolidated Revenue up by 15% at Rs.8,413 crore (PYQ Rs.7,329 crore)
  • Standalone Revenue stood at Rs.1,654 crore as compared to Rs.1,813 crore
  • Standalone PAT stood at Rs.145 crore as compared to Rs.155 crore

Key Business and Growth Highlights:

  • Tata Power completed issuance of 49,05,66,037 Equity shares on a preferential basis to Tata Sons Private Limited (“Tata Sons”) for an aggregate consideration of Rs.2,600 crore.
  • The Company is progressing well on creation of Renewable InvIT with the due diligence by investors underway. The transaction is going as per plan.
  • Sale of Defence business to Tata Advanced Systems Ltd completed at enterprise value of Rs.1,076 crore.
  • Arutmin Coal mine license extended for an initial period of 10 years.
  • Net Debt reduced by 15% vis-à-vis March 2020 to Rs.36,840 crore from Rs.43,578 crore.
  • CRISIL upgraded long term credit rating of Tata Power & its key subsidiaries to AA/Stable from AA-/Positive.
  • ICRA revised the outlook on long term rating of Tata Power to Positive from Stable. Revised Rating is AA-/Positive.
  • Awarded LoA for development of 347 MW of new solar and hybrid bids.
  • SEBI & RBI (for Af-Taab) approval received for merger of CGPL, Aftaab and TPSSL with the Company subject to NCLT approval.

Tata Power, India’s largest integrated power company, today announced its results for the quarter ended 30th September, 2020, reporting a 10% increase in consolidated PAT as compared to Q2FY20.

PERFORMANCE HIGHLIGHTS: CONSOLIDATED
On a consolidated basis, Tata Power Group’s Q2 FY21 Revenue was up by 15% at Rs.8,413 crore as compared to Rs.7,329 crore last year. This is mainly due to TPCODL acquisition and higher Solar EPC revenue. Consolidated PAT stood at Rs.371 crore up by 10% as compared to Rs.339 crore in Q2 FY20 due to stable performance across businesses.

PERFORMANCE HIGHLIGHTS: STANDALONE
For the Quarter ended September 30, 2020, Standalone Revenue stood at Rs. 1,654 crore as against Rs.1,813 crore in the corresponding quarter last year mainly due to lower power demand, fuel cost and power purchase cost. PAT stood at Rs.145 crore as compared to Rs.155 crore in corresponding period last year with
steady operations and operating expenditure well under control.

Commenting on the Company’s performance, Mr. Praveer Sinha, CEO & Managing Director, Tata Power said, “We are glad to report that during the quarter, all our division and subsidiaries have reported robust performance despite pandemic related challenges. We will continue to stay focused on our key growth areas of Renewable and Distribution businesses and to demonstrate benchmark performance of all our existing generation, transmission and distribution businesses.

We believe that our future growth areas Rooftop Solar, EV charging stations, Solar pumps and Micro grids in rural areas will bring in greater value and help us seamlessly align with the consumer needs. For Rooftop Solar offerings, we are now present in more than 100 cities in India. For EV Charging, 203 public charging points have been installed and the geographical presence of our EV charging network has been increased to 23 cities. Tata Power Solar booked 347 MW of new solar/hybrid bids; solar EPC order book today and stands at Rs. 8,687 Crore.

We are working on a long-term strategic plan focused on reducing debt to strengthen our balance sheet. This plan involves divestment of non-core and certain overseas investments, along with restructuring of some of our businesses to unlock value and simplify the structure of the Company.

Simultaneously, we are on track to monetise our 2.7 GW in Renewable Energy assets through a private InvIT. The transfer of assets to the InvIT will allow us to churn capital and reduce net debt substantially. To further bolster the capital structure, the Promoters have infused Rs 2,600 crore through preferential allotment which has been used for reducing debt.”

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