October 29, 2018

Tata Power announces Q2 FY 2018-19 results with 85 percent increase in consolidated PAT, reaffirms strong operating performance

Reports 19 percent increase in renewables EBITDA at ₹631 crore

  • Reports strong all-round performance in H1 FY19. Consolidated underlying business EBITDA# stood at ₹2,668 crore for the quarter due to strong operating performance of all businesses
  • Q2 FY19 consolidated PAT was up 85 percent at ₹393 crore as compared to ₹213 crore in previous year mainly due to good performance from renewables and all regulated businesses. There was also favorable regulatory order impact. The corresponding period last year had a one-time charge of DOCOMO provision of ₹113 crore and ₹35 crore in Rithala
  • Q2 FY19 standalone continues to show strong regulatory and other business performance with PAT at ₹265 crore as compared to ₹52 crore in previous year, higher renewables, lower finance cost, lower taxes and favorable regulatory order impact. The quarterly results were also adversely impacted due to pricing pressures and higher fuel cost
  • H1 FY19 consolidated PAT was up at ₹2,128 crore (244 percent rise as it includes exceptional gain of ₹1,483 crore and favorable Mumbai operations (MO) tariff order of ₹98 crore) as compared to ₹618 crore in the same period last year. Revenue was up by 13 percent at ₹14,373 crore as compared to ₹12,775 crore in the same period last year

Editorial synopsis:

Key financial highlights: Q2 FY19 vs Q2 FY18

  • Consolidated PAT was up at ₹393 crore as compared to ₹213 crore in the corresponding period last year.
  • Standalone PAT was up at ₹265 crore as compared to ₹52 crore.
  • Consolidated revenue* rose to ₹7,234 crore as compared to ₹6,610 crore in the corresponding period last year.
  • Standalone revenue* was up at ₹1,922 crore as compared to ₹1,769 crore in the corresponding period last year.

Key business and growth highlights Q2 FY19:

  • Tata Power and Hindustan Petroleum Corporation (HPCL) signed a memorandum of understanding for setting up commercial-scale charging stations for electric vehicles at the HPCL retail outlets and other locations across India.
  • Tata Power Solar commissioned the world’s largest solar rooftop stadium installation of 820kWp at the Cricket Club of India in Mumbai. Devendra Fadnavis, Chief Minister of Maharashtra, did the inauguration of the stadium.
  • Tata Power Solar recently launched a complete residential rooftop solution across the country.
  • CGPL completed refinancing of the outstanding ECB loans amounting to ~USD 770 million (approximately ₹5,500 crore) through a mix of INR-denominated debt instruments and equity funding from proceeds of divestment of non-core assets. The refinancing of USD loans of CGPL will help in rescheduling the cash requirements as well reducing the effective interest cost, apart from reducing foreign exchange related volatility for CGPL.
  • The lenders of Prayagraj Power Generation Company (PPGCL), a 3X660MW coal-based power project based in UP have issued a letter of intent to Resurgent Power Ventures Pte (Resurgent Power) for acquisition of 75.01 percent stake in PPGCL. Resurgent Power is a joint venture based out of Singapore with 26 percent stake by Tata Power through its wholly-owned Singapore-based subsidiary.
  • CGPL bagged FAME Excellence Safety Award (gold) for best safety practices and implementing workplace safety norms.
  • Becomes country’s first power utility to open two all-women customer relations centres for its consumers in Mumbai.
  • The company, for the first time, won the ‘Best CSR Community Initiative Award’ under the category of ‘livelihood and employability’ at a recently held seminar by the Odisha CSR Forum in Bhubaneswar.

National: Tata Power, India’s largest integrated power company, today announced its results for the quarter ended September 30, 2018, reporting an 85 percent increase in consolidated profit. During this quarter, Tata Power introduced various future-ready technological deployments for the benefit of its customers like the QR code for easy bill payments and installing electric vehicle charging infrastructure in Mumbai, thereby reaffirming its positioning of being a tech-forward integrated power company.

Q2 FY19: Performance highlights: consolidated

  • On a consolidated basis, Tata Power Group’s Q2 FY19 revenue* stood at ₹7,234 crore as compared to ₹6,610 crore last year, mainly due to capacity addition in renewables, increase in fuel cost and increase in shipping tonnage.
  • Consolidated PAT was up 85 percent at ₹393 crore as compared to ₹213 crore in Q2 FY18, mainly due to good performance from renewables and all regulated businesses. There was also a favourable regulatory order impact. Tata Power’s renewables business profits for Q2 FY19 stood at ₹159 crore. The quarterly results were also lower due to pricing pressures and higher fuel cost in the Indonesian coal mines.

Performance highlights: standalone

  • For the quarter ended September 30, 2018, standalone revenue* was up by 9 percent at ₹1,922 crore as against ₹1,769 crore due to higher fuel cost and favourable tariff order.
  • PAT stood at ₹265 crore due to higher wind PLF, lower finance cost, lower taxes and favorable MO tariff order impact as compared to ₹52 crore in the corresponding period last year in Q2 FY18.

Commenting on the company’s performance, Praveer Sinha, CEO and managing director, Tata Power, said, “We are happy to report that all our businesses have done well and our operations continue to perform well. Our growth agenda now is more focused on renewables, rooftop solar solutions and using the Resurgent Power platform to acquire value-adding assets. In the coming years, we have identified key growth areas, which includes renewable generation, transmission and distribution, along with new value-added businesses including rooftop solar, smart metering, home automation, micro grids in rural areas and setting up of electric vehicle charging units. During the quarter, we also rolled out our retail rooftop solutions nationwide, and that has received good response from the customers.”

* Revenue includes regulatory income/expense
# Underlying business EBITDA includes EBITDA of coal companies.