Tata Power reported a 54.6 per cent rise in consolidated net profit at ₹777.73 crore in the March quarter aided by other income while revenue rose about 4 per cent to ₹12,453.76 crore mainly due to its transmission and distribution business.
Revenue from generation and its renewables business saw a dip in the March quarter from a year ago. The bottom line also got a boost from the lower cost of fuel, with coal prices having come off their highs seen last year. In the quarter, the Board of PT Arutmin Indonesia, an investment classified as asset held as sale, declared a dividend and accordingly the company recognized ₹512 crore as other income in the consolidated financial results.
CEO & MD Praveer Sinha said that he expected coal prices to reduce further during the year.
The company ended FY23 with an order book size of ₹17,468 crore having received orders worth ₹3,437 crore in the quarter under review. During the year, the company executed projects of capacity 1.3 giga watt and won new orders of 2.7 GW.
The company intends to bid for the 50 GW of renewable energy projects that the government plans to put up for auction in FY24. The projected capital expenditure for the current year is ₹10,000 crore, Sinha said. In FY23, it spent over ₹6,000 crore.
With respect to the company’s Mundra plant, which was operating at full capacity from May 6, 2022 to December 31, 2022 under the directive of the Ministry of Power, the company expects to amicably resolve an ongoing dispute over tariffs with its customers.
Read: Center allocates 39,600 MW solar module making capacity to 11 firms under PLI
The company had filed a petition with Central Electricity Regulatory.
Commission (CERC) on determining of tariff during the period that the Mundra plant was operating at full capacity. The CERC passed orders that were in favor of the company and revenue of ₹439 crore has been recognized in the quarter due to this. However, customers have appealed against the orders.
During the quarter, Tata Power Renewable also successfully raised ₹4,000 crore by issuing share to a consortium of Blackrock and Mubadla.