Tata Power records 28% YoY growth in Q4 PAT

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Tata Power Company reported 28% rise in consolidated net profit to Rs 503.11 crore on a 15.4% increase in net sales to Rs 11,959.96 crore in Q4 FY22 over Q4 FY21.

Total expenses during the quarter increased by 15.4% YoY to Rs 11,951.68 crore.

Profit before exceptional items and tax in Q4 FY22 was Rs 688.83 crore, which is higher by 48.9% as compared with Rs 462.65 crore in Q4 FY21.

During the quarter ended 31 March 2022, based on current operational performance, the company has reassessed the recoverability of its investment in Adjaristsqali Netherlands B.V. (ABV), held through its wholly-owned subsidiary Tata Power International (TPIPL), and accordingly has recognized an impairment provision of Rs 150 crore as an exceptional item in the financial results.

Profit before tax in the fourth quarter stood at Rs 538.56 crore, up 16.4% YoY.

During the previous year, the company had sold its Strategic Engineering Division to Tata Advanced Systems (TASL) and had recognized contingent consideration of Rs 468 crore based on future expected orders to be received. During the quarter ended 31 March 2022, the company reassessed the fair value of the contingent consideration receivable and recognized the impairment loss of Rs 468 crore as an exceptional item.

Tata Power recorded a 54.5% increase in a consolidated net profit to Rs 1,741.46 crore on a 30.9% rise in net sales to Rs 42,815.67 crore in FY22 over FY21.

The company maintained the net debt to equity ratio at 1.5 despite capex undertaken for growth in Renewables and T&D businesses through working capital management.

The company's board has recommended a dividend of Rs 1.75 per share.

Dr. Praveer Sinha, CEO & managing director, Tata Power said, "We ended FY22 on a high note, with our 10th consecutive quarter of PAT growth, fueled by broad-based growth across all our business clusters comprising generation, transmission, distribution including Odisha and renewables.

Our proven track record in the renewable energy space has attracted reputed global investors (BlackRock Real Assets and Mubadala) to join us in speeding up India's transition to green energy.

Tata Power is one of India's largest integrated power companies and together with its subsidiaries and jointly controlled entities, has an installed/managed capacity of 13,635 MW. The company has a presence across the entire power value chain - generation (renewable, hydro and thermal power), transmission & distribution, coal & freight, logistic, trading and consumer-facing solar rooftop and electric vehicle charging businesses.

The scrip shed 0.95% to end at Rs 245.20 on the BSE.

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