Tata Power is India’s largest integrated power company with a growing international presence. The Company together with its subsidiaries and jointly controlled entities has an installed gross generation capacity of 10757 MW and a presence in all the segments of the power sector viz. Fuel Security and Logistics, Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.
The Company continued its robust operations. Standalone Generation for the quarter stood at 12,237 MUs. Mundra reported generation of 26,686 MUs. Maithon plant reported 7,406 MUs. Trombay Thermal Power Station generated 6,294 MUs. Jojobera Thermal Power Station generated 2,978 MUs and Haldia reported generation of 775 MUs. Industrial Energy Limited reported generation of 2,592 MUs, TPREL generated 919 MUs through clean sources of energy (Solar & Wind) and WREL generated 1,688 MUs.
FY18 Consolidated Profit After Tax was up 144% at ₹2,679 crore. This is mainly due to strong performance by Regulated businesses, Renewables and cost optimization. Exceptional items of ₹1103 crore contributed to the higher profits. CGPL (Mundra UMPP) posted its highest ever losses due to 25% higher coal prices. However, it was offset by higher profits at Coal companies. Moreover, FY18 underlying business EBITDA including Joint Venture (JV) Companies was up 17% at ₹10,104 crore mainly due to 46% increase in Renewable business. Both regulated and non regulated business showed strong all round performance.
Tata Power’s board approved the sale of its Defense business to Tata Advance Systems Limited, a wholly owned subsidiary of Tata Sons at an enterprise value of ₹2,230 crore subject to Government & 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. This lead to provision of ₹4330 crore during the quarter in Standalone results. However, at a consolidated level this gets offset and net gains of ₹1245 crore has been recognized.
Tata Power Delhi Distribution achieved a benchmark reduction in AT&C losses at 8.40% as against – 8.59% for the same period last year. Tata Power’s generation crosses 53,500 MUs for the first time in FY18. On the other hand, its consumer base crossed 2.6 million mark across the country.
Mr. Praveer Sinha, CEO & 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 & 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 monetization of various non-core assets like SED & 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.”
