All-round recovery for Tata Power may take a while

Even as renewables begin to add up, balance sheet deleveraging is crucial

About a year back, when Tata Power acquired the business of Welspun Renewables, analysts were quite critical of the deal as they felt that Tatas overpaid Welspun to get a head start in the renewable space. However. September quarter (Q2) performance of Tata Power puts to rest these criticisms. It cushioned the company in Q2 when it had to take an Rs 1,100 crore hit due to Tata-DoCoMo settlement. Q2's revenues rose by seven per cent year-on-year to Rs 7,393 crore. While this may not appear to be a robust growth number, it still bettered the Street's expectation.

If the non-renewables