Profits for Tata Power’s Renewables Business Rise 200 Percent in Q2 FY 2017-18
Solar Operating Income Increases by 35% Year-over-Year
Tata Power reported a strong all-round performance in the first half (H1) of financial year 2017-18 (FY18). The company’s underlying consolidated business earnings before interest, tax, depreciation, and amortization (EBITDA) rose 25 percent against the same period a year earlier. The results included an improvement of 16 percent in the second quarter (Q2) due to the strong operating performance posted by of all businesses.
Profits for its renewables business saw the most impressive jump, rising by 200 percent to ₹173 crores in Q2 FY18 from ₹86 crores in Q2 FY17. The company reported that consolidated after-tax profits (PAT) for H1 FY18 rose 18 percent from the year-earlier period to ₹613 crores, excluding the one-off impacts of ₹152 crore.
Operating income from Tata Power Solar registered a 35 percent increase to ₹470 crores in Q2 FY18 from ₹347 crores in Q2 FY17.
Anil Sardana, chief executive officer and managing director of Tata Power said, “During the quarter, the company reported robust operational efficiency and performance in spite of a difficult business environment. Our renewable business continues to perform well and we have reported robust results.”
Sardana said the consolidated profit of ₹386 crore (before one-off impacts) for the second quarter reflects the company’s steady performance. “With 10,501 MW of gross installed generation capacity and more than 2.6 million customers, we continue to be India’s largest integrated power player. Having said that, we have maintained our commitment to providing our customers with the latest technology by introducing the QR Code service for bill payments, and we were the first power utility to set up electric vehicle charging stations in Mumbai and Delhi. We are confident that our strong growth trajectory will continue into the next quarter,” Sardana added.
In August, Tata Power Solar said its net sales in fiscal year 2016-17 increased by 52 percent against the year‑earlier period to ₹2,262 crores. By comparison, net sales of ₹1,490 crores were reported in fiscal year 2015-16. The company revealed that revenues increased by more than 250 percent during the last two years. Tata Power Solar also reported that its after-tax profits increased by 330 percent in fiscal year 2017.
Image credit: Tata Power Renewables
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.