November 03, 2017

Tata Power announces Q2 FY2017-18 results; reaffirms strong operating profit margins

Renewables business PAT up 200 percent

  • Reports strong all-round performance in H1 FY18. Consolidated underlying business EBITDA# up 25 percent and for the quarter up 16 percent, due to strong operating performance of all businesses.
  • Renewable business profits jump 200 percent to Rs173 crore in Q2 FY18 from Rs86 crore in Q2 FY17, led by profits from the renewable acquisition.
  • H1 FY18 consolidated PAT stood at Rs613 crore (before one off impacts of ₹152 crore) up 18% as compared to previous year.
  • Q2 FY18 consolidated PAT stood at Rs386 crore (before one-off impacts of Rs152 crore) as compared to Rs427 crore in the corresponding period last year, mainly due to higher FX loss of Rs113 crore in CGPL.
  • Tata Power standalone continues to show robust performance, with operating profit up 2 percent compared to Q2 FY17. PAT is down due to lower dividend and no interest income from CGPL.
  • Coal companies report strong performance off-setting fuel under recovery at CGPL. CGPL further impacted by Forex losses of Rs113 crore as compared to corresponding period last year.
  • One-off impacts of Rs152 crore include provisions for Docomo and Rithala plant.

Key financial highlights: Q2 FY18 vs Q2 FY17

  • Consolidated PAT stood at Rs386 crore (before one-off impacts of Rs152 crore) compared to Rs427 crore in the corresponding period last year. PYQ profits also include Rs52 crore PAT of PTMP which is held for sale now and hence not consolidated.
  • Standalone PAT stood at Rs163 crore (before exceptional item of Rs113 crore) as compared to Rs496 crore in the corresponding period last year
  • Consolidated revenue* stood at Rs7,393 crore compared to Rs7,285 crore in the corresponding period last year
  • Standalone revenue* stood at Rs1,821 crore as compared to Rs1,798 crore in the corresponding period last year

Key business and growth highlights Q2 FY18

  • Together with subsidiaries, Tata Power achieved generation of 14,440 MUs of power from all its power plants
  • Tata Power Renewable Energy (TPREL) reported strong operational growth, with generation capacity rising 49 percent from Q2 FY17
  • Tata Power is the first power utility to introduce QR code for bill payments in India
  • Tata Power launched Mumbai’s first electric vehicle charging infrastructure in the city
  • Tata Power completed the construction of its 187MW hydro project in Georgia, which is  likely to commence generation soon

National: Tata Power, India’s largest integrated power company, today, announced its results for the quarter ended September 30, 2017, reporting an 18 percent increase in consolidated profit (before one-off impacts of Rs152 crore) for H1 FY18. During this quarter, Tata Power introduced various future-ready technological deployments for the benefit of its customers, such as the QR Code for easy bill payments and installing electric vehicle charging infrastructure in Mumbai, thereby reaffirming its positioning of being a tech-forward integrated power company.

Performance Highlights: Consolidated

  • On a consolidated basis, Tata Power Q2 FY18 revenue* stood at Rs7,393 crore compared to Rs7,285 crore last year.
  • Consolidated PAT stood at Rs386 crore (before one-of impacts of Rs152 crore) compared to Rs427 crore in Q2 FY17, which includes Rs52 crore PAT of PTMP in Q2 FY17. PTMP is now held for sale and hence not consolidated.
  • Tata Power’s renewables business’ profits jumped 200 percent compared to Q2 FY17. Most other operations, besides CGPL, have done better and reported strong performance. MPL, IPTC (Zambia), and coal companies reported higher profits compared to the corresponding quarter last year.

Performance Highlights: Standalone

  • For the quarter ended September 30, 2017, standalone revenue* was Rs1,821 crore as against Rs1,798 crore.
  • PAT stood at Rs163 crore (before exceptional item of Rs113 crore) as compared to Rs496 crore in corresponding period last year, mainly because of higher dividend and deemed interest from CGPL in Q2 FY17.

Commenting on the company’s performance, Anil Sardana, CEO and managing director, Tata Power, said, “During the quarter, the company reported robust operational efficiency and performance inspite of a difficult business environment. Our renewable business continues to perform well and have reported robust results. The consolidated profit of Rs386 crore (before one-off impacts) for the quarter shows steady performance. With a gross installed generation capacity of 10,501MW and more than 2.6 million customers, we continue to be India’s largest integrated power player. Having said that, we have maintained our commitment to providing our customers with the latest technology by introducing the QR code service for bill payments, first power utility to set up electric vehicle charging stations in Mumbai and Delhi. We are confident that our strong growth trajectory will continue into the next quarter.”

*Revenue includes Regulatory income/expense
#Underlying Business EBITDA includes EBITDA of coal companies.