Tata Power Q4 net doubles to Rs 360 cr

Firm beats Bloomberg estimate of Rs 277 cr, announces dividend of Rs 1.30 per share

Tata Power's net rose sharply by 126 per cent to Rs 360.25 crore for the quarter ended March 31, 2016, due to strong operational performance, against Rs 159.14 crore of the corresponding quarter last year. The company beat the Bloomberg estimate of Rs 277 crore.

Total income from operations increased by 18 per cent to Rs 9,375.16 crore against Rs 7,907.64 crore. The revenue from power business surged to Rs 7,025.14 crore against Rs 5,996.54 crore, a 17 per cent increase while the revenue from coal business increased by eight per cent to Rs 2,023.75 crore against Rs 1,873.11 crore.

The company's stock on BSE closed at 70.70, a rise of 1.87%. The board of directors has recommended dividend of Rs. 1.30 per share.

The company proposes to increase non-fossil sources at 30-40 per cent by 2025, up from its earlier target of 20 per cent, and has set a target of 20,000 Mw of total capacity.

CEO and MD Anil Sardana said, "The Company's relentless focus on operational improvements have shown great results. All our subsidiaries and plants have shown strong performance despite very challenging circumstances. Also Appellate Tribunal for Electricity decision is a welcome development & we hope that Central Electricity Regulatory Commission (CERC) would help resolve the impending issue of fuel-under recovery at CGPL (Mundra UMPP) soon.''