Tata Power on Thursday posted over 22 per cent rise in consolidated net profit at Rs 318.41 crore for December quarter 2020-21, mainly on the back of higher revenues.
The net profit in the year-ago period was Rs 260.10 crore, Tata Power said in a BSE filing.
Total income rose to Rs 7,702.84 crore in the quarter from Rs 7,136.04 crore in the same period a year ago.
“We are pleased to inform that all our businesses and subsidiaries have reported a robust performance this quarter despite facing pandemic related challenges," Praveer Sinha, CEO & Managing Director, Tata Power said in a statement.
"We marked a new milestone for our distribution business by acquiring the distribution and retail supply of electricity in Odisha's five circles of WESCO and six circles of SOUTHCO. Letter of intent for acquiring 51 per cent shareholding in five circles of NESCO has been received from Odisha Electricity Regulatory Commission (OERC)," he added.
Tata Power's focus now lies in demonstrating a benchmark performance through all its existing generation, transmission and distribution businesses while continuing to concentrate on key growth areas i.e. renewables, distribution business and new businesses of rooftop solar panels and EV (electric vehicle) charging, he added.
"As the company's business is undergoing a huge transformation, we are restructuring our business model based on sustainable and profitable growth. With an intent to overcome our legacy issues, Tata Power has fully repaid the entire bank loan of CGPL (Coastal Gujarat Power Ltd) aggregating to Rs 4,150 crore," he said.
The solar EPC business continues to grow. During this quarter, Tata Power Solar booked 153 MW of new solar/hybrid bids and the solar EPC (engineering procurement and construction) order book stands at Rs 10,608 crore, Sinha said.
The company has also installed over 300 public EV charging points and the geographical presence has expanded to 40 cities.
"We are confident of monetizing our Renewable Energy assets through an InvIT. This will give us the necessary capital for investing in growth as also reduce our debt substantially,” he added.
The company said it does not expect much impact of the pandemic on its business.
"The management believes that there is not much of an impact likely due to this pandemic except that there exists some uncertainty over impact of COVID-19 on future business performance of some joint ventures involved in the coal mining and an associate engaged in providing engineering, procurement and construction services," it added.
However, the said uncertainty is not likely to impact the recoverability of the carrying value of its investment in such joint ventures and associate.
As the situation is still continuously evolving, the eventual impact may be different from the estimates made as of the date of approval of these consolidated financial statements, it said.