May 02, 2018

Tata Power announces FY2017-18 results

Annual consolidated PAT up by 144 percent at Rs2,679 crore; Q4 consolidated PAT recorded eight-fold growth and rose to Rs1,478 crore; 17 percent growth in underlying business EBITDA; renewable business PAT up 55 percent AT Rs425 crore; added 294MW of capacity in FY18; recommends dividend of Rs1.30 per share.

  • Board recommends a dividend of Rs1.30 per share, the same as last year.
  • FY18Q4 consolidated PAT rose to Rs1,478 crore, recorded eight fold increase i.e., 751 percent mainly due to good all round performance and exceptional gains as against net loss of Rs227 crore in the same period last year. Operating profit for the quarter was up 18 percent at Rs1,445 crore as compared to Rs1,221 crore in Q4FY17 mainly due to renewable business and all round good performance of all businesses.
  • FY18 consolidated profit after tax was up 144 percent at Rs2,679 crore mainly due to strong performance by regulated businesses, renewables and cost optimisation. Exceptional items of Rs1,103 crore contributed to the higher profits. CGPL (Mundra UMPP) posted its highest ever losses due to 25 percent higher coal prices however it was offset by higher profits at coal companies.
  • The FY18 underlying business EBITDA including Joint Venture (JV) companies was up 17 percent at Rs10,104 crore mainly due to 46 percent increase in renewable business and strong all round performance in both regulated and non-regulated business.
  • Tata Power standalone Q4 FY18 PAT before onetime exceptional loss rose four-fold to Rs391 crore as compared to Rs79 crore in Q4 FY17. PAT after exceptional loss of Rs4,330 stood at Rs3,939 crore as compared to loss of Rs573 crore in the corresponding quarter last year mainly due to onetime exceptional loss of Rs651 crore relating to Docomo investment.

Editorial Synopsis

Key Financial Highlights: Q4 FY18 vs Q4 FY17

  • Consolidated PAT rose to Rs1,478 crore mainly due to exceptional gain of Rs1,245 crore and gains in other businesses as compared to loss of Rs227 crore in the corresponding quarter last year.
  • Consolidated revenue* was up at Rs7,853 crore as compared to Rs6,876 crore in the corresponding quarter last year.
  • Standalone PAT before exceptional loss rose four-fold to Rs391 crore as compared to Rs79 crore in Q4 FY17. PAT after exceptional loss of Rs4,330 stood at a loss of Rs3,939 crore as compared to loss of Rs573 crore in the corresponding quarter last year mainly due to exceptional loss of Rs651 crore relating to Docomo investment.
  • Standalone revenue* was up 9 percent at Rs1,836 crore as compared to Rs1,681 crore in the corresponding quarter last year.

Key Financial Highlights: FY18 vs FY17

  • Dividend recommended by Board at Rs1.30 per share.
  • Consolidated PAT was up 144 percent at Rs2,679 crore mainly due to exceptional gain of Rs1,103 crore and significant increase in renewables business and all round performance across regulated and unregulated businesses as compared to Rs1,100 crore.
  • Tata Power consolidated FY18 revenue* was up 6 percent at Rs28,921 crore as compared to Rs27,286 crore last year.
  • Standalone PAT was up 23 percent at Rs1,287 before exceptional loss as compared to Rs1,049 crore in FY17. Exceptional loss of Rs4,437 in FY18 relates to Mundra UMPP and certain other investments.

Key Business and Growth Highlights

  • Clean energy portfolio grew to 3,417MW as compared to 3,141MW last year.
  • Tata Power Delhi Distribution achieved a benchmark reduction in AT&C losses at 8.40 percent as against 8.59 percent for the same period last year.
  • In 2018, Tata Power's consumer base crossed 2.6 million mark across the country.
  • Tata Power's generation crosses 53,500MUs for the first time in FY18.
  • Tata Power’s board approved the sale of its defence business to Tata Advance Systems, a wholly owned subsidiary of Tata Sons at an enterprise value of Rs2,230 crore subject to Government and other approvals. The Board also approved sale of other non-core investments including Tata Communications and Panatone.
  • The company reviewed provisions for impairment of its investments in CGPL, coal mines and other investments leading to provision of Rs4,330 crore during the quarter in standalone results. However, at a consolidated level this gets offset and net gains of Rs1,245 crore has been recognised.

National: Tata Power, India’s largest integrated power company, today announced its results for the quarter ended March 31, 2018.

Performance highlights: consolidated

  • On a consolidated basis, Tata Power group’s FY18 revenue* increased to Rs28,921 crore up 6 percent as compared to Rs27,286 crore last year mainly due to higher generation and sales.
  • PAT was up 144 percent at Rs2,679 crore largely due to exceptional gain of Rs1,103 crore and higher share of PAT from associates and JVs as compared to Rs1,100 crore in FY17.
  • Renewable business crossed Rs425 crore of PAT and 2,349MW capacity mark. During the year, the company also added 276MW.
  • During the quarter ended March 31, 2018, Tata Power’s consolidated revenue* rose to Rs7,853 crore up 14 percent as compared to Rs6,876 crore in the corresponding quarter last year mainly due to higher generation and sales.
  • Operating profit for the quarter was up 18 percent at Rs1,445 crore as compared to Rs1,221 crore in Q4FY17 mainly due to renewable business and all round good performance of all businesses.
  • The company’s PAT for the quarter rose eight-fold to Rs1,478 crore mainly due to exceptional gain of Rs1,245 crore as against loss of Rs227 crore reported in the corresponding quarter last year mainly due to exceptional loss Rs651 crore.

Performance highlights: standalone

  • For the financial year ended March 31, 2018, revenue* was up 8 percent at Rs7,301 crore as compared to Rs6,769 crore last year, mainly due to favourable regulatory orders.
  • PAT before onetime exceptional loss was up 23 percent at Rs1,287 crore as compared to FY17 profit of Rs1,049 crore. FY18 exceptional loss of Rs4,437 crore relates to impairment of Mundra UMPP and certain other investments whereas FY17 had exceptional loss of Rs651 crore relating to Docomo investment.
  • Profit from operation was up 13 percent to Rs2,358 crore as against Rs2,096 mainly due favourable tariff order.
  • For the quarter ended March 31, 2018, standalone revenue* was up by 9 percent to Rs1,836 crore as against Rs1,681 crore.
  • Profit from operation was up by 38 percent to Rs587 crore as against Rs424 crore mainly due favourable tariff order.
  • PAT before exceptional loss rose four-fold to Rs391 crore as compared to Rs79 crore in Q4 FY17. PAT after one time exceptional loss of Rs4,330 stood at Rs3,939 crore as compared to loss of Rs573 crore in the corresponding quarter last year mainly due to exceptional loss of Rs651 crore relating to Docomo investment.

Commenting on the company’s performance, Praveer Sinha, CEO and managing director, Tata Power, said, The company has registered a strong growth in consolidated PAT. All our subsidiaries and plants have reported robust performance despite challenging circumstances and sectoral challenges. This has been largely due to company’s relentless focus on operational improvements and excellence. Tata Power Solar has shown excellent performance and turn around and has been a significant contributor to company’s robust performance. The renewable portfolio continues to do well and has once again made a healthy contribution to PAT. Our Delhi distribution arm, TPDDL also continues to reduce its AT&C losses at benchmark levels. Moreover, the company has been working on charting its next phase of growth for which monetisation of various non-core assets like SED and other cross holdings is underway to improve the balance sheet. We are committed to pursuing a well charted growth strategy by demonstrating a high level of commitment towards cleaner sources of generation.

“While CGPL’s under recovery for the quarter and full year has been offset by gains in coal mines to some extent but tangible steps need to be taken by procurers to resolve the viability issue at the earliest.”

Operational highlights

The company continued its robust operations. Standalone generation for the quarter stood at 12,237MUs. Mundra reported generation of 26,686MUs. Maithon plant reported 7,406MUs. Trombay Thermal Power Station generated 6,294MUs. Jojobera Thermal Power Station generated 2,978MUs and Haldia reported generation of 775MUs. Industrial Energy reported generation of 2,592MUs, TPREL generated 919MUs through clean sources of energy (Solar and Wind) and WREL generated 1,688MUs.

Awards and recognition

  • Tata Power was announced the winner in the category of ‘Best Risk Management Framework and Systems – Power’, at the 4th Edition of The India Risk Management Awards.
  • Tata Power Skill Development Institute was bestowed with Global HR Skill Development Award 2018 at the 8th World Petrocoal Congress.
  • Tata Power’s JV with Power Grid Corporation of India - Powerlinks Transmission was honoured with ‘Best in Class Infra Asset South Asian Regional Grid (SARG)’ at 11th Enertia awards.

*Revenue includes Regulatory income/expense