Tata Power on Wednesday reported a 9 per cent rise in consolidated net profit in its fiscal second quarter (Q2) of the current financial year. The Tata group company reported a consolidated net profit of Rs 1,017.41 crore in the quarter ended September 2023-24 (FY24), while a consolidated net profit of Rs 935.18 crore in the second quarter of 2022-23 financial year (FY23) Was. , revealed through an exchange filing.
The company reported a 13 per cent rise in its total income at Rs 16,029.54 crore in the quarter reported in FY24 as against Rs 14,181.07 crore reported in the same quarter a year ago.
The company’s revenue grew by 9 percent on a year-on-year (YoY) basis. The power producer’s revenue for Q2FY24 stood at Rs 15,442 crore, attributed to growth in earnings from its core businesses of generation, transmission and distribution.
The company also said it witnessed 84 per cent contribution to total profit after tax from core businesses during the quarter, while the share of its foreign joint ventures, including coal mining operations, continued to decline.
The company revealed that its EBITDA increased by 51 per cent to Rs 3,087 crore in the quarter under review on an annual basis. EBITDA (earnings before interest, taxes, depreciation and amortization) is often used by companies as an alternative to net income to better understand their finances.
Commenting on the performance, Praveer Sinha, CEO and Managing Director, Tata Power, said, “We have recorded another strong quarter of financial performance, driven by strong contributions from all our core business groups.” The executive attributed the steady increase in profitability to the company’s business flexibility and diversification.
“We are continuously focusing on new areas of growth such as our greenfield solar cells And module manufacturing plant in Tamil Nadu which has produced its first module this quarter and is on track to launch first sales in Q4FY24. We continue to make significant progress in enabling the green energy transition by supplying renewable energy around the clock with hybrid solar and wind plants as well as pumped storage plants, Sinha said.
The company said its clean energy portfolio reached the milestone of 5,500 MW during the reported quarter, which is 38 per cent of the total installed generation capacity. “Tata Power has also made significant progress in its distribution business by improving its cash flows and reducing AT&C losses in Odisha. Moreover, it is well placed to deploy capital on pumped hydro storage projects and has signed an MoU with the Maharashtra government to develop 2,800 MW of projects,” Sinha said.
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