August 14, 2017

Tata Power announces Q1 FY 2017-18 results; records a strong quarter

  • Q1 FY18 consolidated PAT rose 126 percent to Rs164 crore due to strong performance from coal companies, renewable business and overall good operational performance. Q1 FY18 consolidated revenue* was up 2 percent at Rs6,725 crore, mainly due to WREPL revenue.
  • Q1 FY18 consolidated EBITDA achieved is Rs2,514 crore, which is 40 percent higher than Q1 FY17. Consolidated operating profit was up 16 percent at Rs1,587 crore compared to Rs1,363 crore in the corresponding quarter last year, reflecting strong operational performance.
  • Indonesian Coal Companies, Tata Power Solar, Walwhan Renewable Energy Pvt (WREPL), Tata Power Solar and Tata Power Renewable Energy (TPREL) reported strong growth and operational performance in Q1 FY18 as compared to Q1 FY17. Other businesses, such as MPL, TPDDL and others also reported higher profits as compared to the corresponding quarter last year.

Editorial synopsis:

Key financial highlights: Q1 FY18 versus Q1 FY17:

  • Consolidated PAT stood at Rs164 crore, up 126 percent, as compared to Rs72 crore
  • Standalone PAT stood at Rs188 crore, up 28 percent, compared to Rs147 crore
  • Renewable business (consolidated) PAT stood at Rs109 crore as compared to Rs26 crore
  • Consolidated revenue* stood at Rs6,725 crore, up 2 percent, compared to Rs6,566 crore
  • Consolidated PAT stood at Rs164 crore, up 126 percent, compared to Rs72 crore
  • Standalone revenue* stood at Rs1,916, up 9 percent, compared to Rs1,754 crore

Key business and growth highlights:

  • Tata Power has been ranked as the Most Respected Company in Infrastructure Sector by Business World.
  • Together with subsidiaries, Tata Power achieved generation of 12,405 MUs of power from all its power plants.
  • Tata Power Solar and Tata Power Renewable Energy reported strong operational growth compared to Q1 FY17.
  • Tata Power's distribution arm, TP Ajmer Distribution, takes over the distribution area of Ajmer Vidyut Vitran Nigam, with effect from July 1, 2017.
  • Tata Power's renewable capacity crossed the 2,000MW mark and green portfolio crossed 3,000MW mark in Q1FY18
  • 186MW Georgia Hydro Project synchronised on August 1 and 2, 2017, in record time. Stabilisation procedures have commenced.
  • Tata Power Club Enerji celebrated 10 years of operation in Q1 FY18; saved 21 million MUs of electricity by sensitising 15 million people across the country in the past decade.
  • Tata Power's Strategic Engineering Division (Tata Power SED) wins a prestigious pilot project order from the Ministry of Home Affairs for supply of Comprehensive Integrated Border Management System (CIBMS) to Border Security Force (BSF).
  • Tata Power Skill Development Institute (TPSDI) announced its plan to train over 54,000 people by 2020.

National: Tata Power, India’s largest integrated power company, today announced its results for the quarter ended June 30, 2017, reporting a 126 percent increase in PAT and 28 percent increase in standalone PAT as compared to Q1 FY17.

Performance highlights: consolidated

  • On a consolidated basis, Tata Power group’s Q1 FY18 Revenue* was up 2 percent at Rs6,725 crore, compared to Rs6,566 crore last year. This is mainly because of addition of WREPL revenue.
  • Consolidated PAT stood at Rs164 crore, up 126 percent, compared to Rs72 crore in Q1 FY17, mainly due to strong performance of the Indonesian coal mines, the renewable business and sustained operations at other Indian companies such as MPL, Tata Power Solar, TPDDL, Powerlinks and others.
  • The consolidated PAT was also impacted by higher tax provision of about Rs120 crore as compared to Q1 FY17.
  • The impact of higher coal prices on CGPL was partially offset by MTM gains. The performance was also impacted by lag in notified tariff, which will come in subsequent quarters.

Performance highlights: standalone

  • For the quarter ended June 30, 2017, standalone revenue* stood at Rs1,916 crore, up 9 percent, as against Rs1,754 crore, mainly due to Mumbai operations. 
  • Profit from operations stood at Rs592 crore, up 12 percent, as against Rs526 crore in the corresponding quarter last year.
  • PAT stood at Rs188 crore, up 28 percent, as compared to Rs147 crore in the corresponding period last year

Commenting on the company’s performance, Anil Sardana, CEO and Managing Director, Tata Power, said, “During the quarter, the company reported a strong performance by all its businesses, backed by operational excellence. Tata Power Solar, WREPL and Tata Power Renewable Energy have demonstrated excellent performance and reported a significant jump in profits. The company has significantly increased its green footprint by building its non-fossil fuel capacity beyond 3,000MW.

Despite the challenging environment in the power sector in recent years, the company has expanded its international presence and continues to look for viable business opportunities across the select international geographies. The company is continually evaluating opportunities for improvements and integrating them within its operations, execution and growth processes in its endeavour to maximise stakeholder value”.