Tata Power’s Renewables Business Profit Jumps to ₹720 Million in Q3 FY2018
The company recently launched a charging station in Mumbai as part of its expansion into electric vehicles
February 15, 2018
Tata Power reported Q3 consolidated net profit of ₹6.12 billion (~$95.32 million), slightly below compared to the same quarter last year of ₹6.19 billion (~$96.41 million).
Underlying earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter stood at ₹23.82 billion (~$0.37 billion).
Consolidated revenue for the quarter totaled ₹70.96 billion (~$1.11 billion), up 6 percent from Q3 FY 2016-17.
The after-tax profit of Tata Power’s renewable portfolio jumped to ₹720 million (~$11.23 million) in Q3 FY2018 as compared to ₹140 million (~$2.18 million) in Q3 FY2017, mainly due to the refinancing of loans in acquired assets of Welspun Renewables.
The company said the after-tax profit of its renewable portfolio was impacted by lower fixed cost absorption in newly commissioned projects under stabilization.
The managing director of Tata Power, Anil Sardana, said in a media statement, “The company has successfully adopted and implemented best-in-class technological solutions for the ease and betterment of its customers and stakeholders. The successful digitalization of our business processes is a testimony to our technology forward approach. In 2017, we were thrilled to launch the first electric vehicle charging stations in Mumbai. As the nation moves toward clean and affordable power for all, it is our endeavor to provide customers with the competitive solutions for a greener tomorrow.”
The company reported that it added 227 MW of solar capacity and 5.4 MW of thermal capacity to its portfolio during Q3 FY18.
Tata Power’s renewable business recently commissioned a 25 MW grid-connected solar photovoltaic (PV) project in Charanka Solar Park in Gujarat ahead of schedule.
Tata Power Solar has also developed and commissioned a solar carport on the rooftop of the 70,000-square-meter Unity One Mall in Rohini, Delhi.
The company has also entered the electric vehicle business as both a manufacturer of electric vehicles and a charging infrastructure developer.
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.