In This Article:
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PAT Growth: 21st consecutive quarter of PAT growth.
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EBITDA Growth: Increased for the quarter and cumulatively over the last nine months.
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Renewable Business EBITDA: Increased by 38%.
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Rooftop Business Revenue: Crossed INR500 crores for the first time in the quarter.
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CapEx: Nearly INR12,000 crores spent in the last nine months, with plans for an additional INR10,000 crores in the current quarter.
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Net Debt: Approximately INR44,700 crores.
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Debt to Equity Ratio: 1.1 to 1.
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Net Debt to Underlying EBITDA: Less than three.
Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tata Power Co Ltd (BOM:500400) reported its 21st consecutive quarter of PAT growth, demonstrating strong performance across its business segments.
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The company's renewable business showed significant growth, with EBITDA increasing by 38% and PAT also rising for the quarter and the full nine months.
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Tata Power Co Ltd (BOM:500400) has successfully stabilized its Odisha operations, improving billing efficiency, collection efficiency, and reducing AT&C losses.
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The company has a robust CapEx plan, having spent INR12,000 crores in the last nine months and planning an additional INR10,000 crores in the current quarter.
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Tata Power Co Ltd (BOM:500400) is committed to achieving 70% clean energy by 2030, with current projects already bringing them to 43% clean energy.
Negative Points
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The demand for power has not increased as much as in previous years, although a rise is expected with the upcoming summer.
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There are uncertainties surrounding the Nuclear Power Act amendments, which could impact Tata Power Co Ltd (BOM:500400)'s plans to invest in nuclear power.
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The company's EPC business faced revenue reversals due to intercompany billing adjustments, affecting the top line.
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There is volatility in intersegment elimination, which hampers the predictability of Tata Power Co Ltd (BOM:500400)'s financials.
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The renewable generation business profitability growth was not as high as expected despite a 25% capacity addition, partly due to lower PLFs and project delays.
Q & A Highlights
Q: What are Tata Power's expectations for the nuclear power business model and timeline for small modular reactors? A: Praveer Sinha, CEO, mentioned that while details are still emerging, the approval process for nuclear plants is stringent and takes about 24 months, with construction taking an additional four to five years. The company is optimistic about implementing new technologies faster but awaits more information before finalizing timelines and plans.