Muted power demand during Q2 of FY25 hit Tata Power’s financial performance with flat revenue from operations, while net profit rose a tepid 5.8 per cent on year with exceptional items to the tune of ₹140 crore reducing the bottom line.
The power producer reported a consolidated net profit of ₹926.5 crore on revenue of ₹1,5697.7 crore. The net profit before exceptional items was ₹1,533 crore, an increase of 51 per cent. EBITDA in the quarter was 23 per cent higher at ₹3,808 crore.
The September quarter was marked by prolonged monsoon that extended into October, Managing Director and CEO Praveer Sinha said. With the coming winter expected to be severe, Sinha displayed optimism about an increase in power demand.
Hydro project
The board approved an investment of ₹5,666 crore for 1,000 MW of pumped storage hydro capacity at Bhivpuri. The company’s overall capacity now stands at 15.2 GW and capacity expansion will be executed in 44 months. Financing for the project will be through 75 per cent debt and remaining equity.
The pumped storage hydro project (PSP) will ensure renewable energy’s round-the-clock application and facilitate energy shifting.
Sinha said all the segments – generation, transmission and distribution and the renewable businesses – were showing good growth momentum.
Ramp up capacity
During the quarter, it commissioned a 2 GW cell-production line in Tamil Nadu where it has a 4.3 GW cell-and-module plant, which is expected to achieve full capacity by next month. The module plant has hit a peak capacity of 20,000 modules a day in Q2FY25 and will get ramped up by another 2GW by next month.
Under the PM Surya Ghar Yojana, the company expects to have 30 lakh solar roof-top installations spread across Odisha, Uttar Pradesh and Rajasthan.
In the first half of FY25, the company has spent ₹9,100 crore out of its total annual capex target of ₹20,000 crore.
The company has won projects worth ₹7,100 crore in its transmission business adding 1,607 circuit km (ckm), bringing its transmission portfolio to 7,049 ckm, of which 4,633 ckm was in operation.
Thermal energy, which accounts for 58 per cent of its portfolio, is expected to drop to 41 per cent after the project’s completion.
