Tata Power Q1 Results: Net profit dips to ₹970.9 crore; plans to acquire stake in Khorlochhu Hydro Power

Tata Power Company Ltd has reported a slight decline in its net profit for the first quarter ending June 30, 2024. The company’s net profit fell 0.2% year-on-year to ₹970.9 crore, missing analysts’ expectations.

Financial Highlights

• Net Profit: ₹970.9 crore, a 0.2% decline from ₹972.5 crore in the same quarter last year. The expected profit was ₹1,016.7 crore.
• Revenue: Increased by 13.7% to ₹17,293.6 crore compared to ₹15,213 crore in the previous year. Analysts had predicted ₹17,000 crore.
• EBITDA: Surged 21.9% to ₹3,586.7 crore, exceeding the expected ₹3,034.9 crore.
• EBITDA Margin: Improved to 20.7% from 19.4% in the first quarter of the previous fiscal year.

Business Performance

• Profit Contribution: Tata Power’s generation, renewables, and transmission & distribution clusters contributed 84% to the profit after tax, up from 72% in the previous year.
• Solar Module Production: The new 4.3 GW solar module and cell manufacturing plant in Tirunelveli, Tamil Nadu, produced 600 MW of modules, generating ₹1,000 crore in revenue and a profit of ₹54 crore in its first quarter.

Expansion and Acquisition

• Renewable Energy Projects: Tata Power is developing around 2 GW of firm and dispatchable renewable energy projects, aiming to expand its clean energy portfolio to over 11 GW in the next 12-24 months.
• Order Book: The solar EPC business has an order book totaling 3.2 GW, valued at over ₹15,500 crore, with a renewable projects pipeline of 5.3 GW.

Acquisition Details

• Khorlochhu Hydro Power Ltd (KHPL): Tata Power plans to acquire a 40% equity stake in KHPL for approximately ₹830 crore. This acquisition supports Tata Power’s clean energy transition.
• Project Development: KHPL is developing a 600 MW hydropower project in Bhutan, requiring an investment of around ₹6,900 crore.