Consolidated operating profit of Tata Power, margins affected by the losses of Mundra

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The higher cost of electricity purchased for the distribution business impacted Tata Power’s operating margins for the second quarter, dropping 700 basis points year-on-year to 16.95%.

Tata Power Company’s consolidated operating profit for the July-September quarter fell 16.22% year-on-year (YoY) to Rs 1,663.64 crore, due to higher losses from the ultra-mega electric project of Mundra due to an increase in the cost of imported coal.

The higher cost of coal impacted the load factor (PLF) and plant availability of the Mundra project, although the overall thermal PLF increased during the period. The PLF and plant availability for Coastal Gujarat Power, owner of the Mundra project, fell to 25% at T2FY22 from 79% a year ago, while the PLF for Tata Power’s other thermal plants fell to 76 % against 65% a year ago. .

Mundra’s operating income had fallen to Rs 219 crore at T2FY22 from Rs 1,902 crore a year ago. Its operating profit was negative (-) Rs 533 crore against Rs 312 crore a year ago.

The higher cost of electricity purchased for the distribution business impacted Tata Power’s operating margins for the second quarter, dropping 700 basis points year-on-year to 16.95%.

However, T2FY22’s total income increased 20.67% year-on-year to Rs 10,187.33 crore and net profit increased 36.32% to Rs 506 crore, thanks to a strong performance of transmission and distribution, renewable energy and coal mining in Indonesia. The net profit figures have met Bloomberg’s estimates.

Transmission and distribution revenues reached Rs 6,787.41 crore from Rs 4,566.19 crore a year ago, while the renewable energy sector reported revenue of Rs 1,494, Rs 87 crore. However, revenue from the power generation segment for the second quarter of fiscal 22 was less than Rs 2,216.86 crore compared to Rs 3,484 crore a year ago.

The loss of Rs 863 crore to Mundra at T2FY22 was more than offset by the profit of Rs 623 crore from the coal companies in Indonesia and the share of joint ventures at T2FY22. The profit of the coal companies alone amounted to Rs 520 crore.

Praveer Sinha, CEO and Managing Director of Tata Power, said the company’s focus remains on expanding the renewable energy and transmission and distribution business and the greening strategy in the generation sector. The company is aligned with India’s National Electric Mobility Mission Plan 2020 and FAME II Policy, which focus on transforming the electric mobility space.

“The company has taken an important step forward by deploying 1,000 public charging points for electric vehicles in 180 cities in India. Our goal is to install electric vehicle charging stations along a 3,600 km stretch from the northernmost region of Kashmir in India to Kanyakumari. We will also continue to strengthen our solar pumps, solar roofs and solar micro-grids businesses, ”Sinha said.

Net debt as of September 30, 2021 stood at Rs 39,719 crore, up from Rs 39,649 crore a year ago. Net debt to equity also increased to 1.63 times from 1.53 times. Cash and cash equivalent as of September 30, 2021 stood at Rs 1,873 crore compared to Rs 4,076.25 crore a year ago.

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