Tata Power is on track to boost its net profit and Ebitda, backed by a strong order pipeline across key businesses, according to the company’s Chief Executive Officer and Managing Director Praveen Sinha. Speaking to NDTV Profit, Sinha claimed that the company will “continue to surprise” everyone with its performance.
“We have a very strong pipeline. What we have demonstrated in 21 quarters of consistent performance, you will continue to see that in the future. Much better and much higher increase in PAT and Ebitda numbers,” he said.
“We have surprised everyone consistently, and we’ll continue to surprise in the future too,” Sinha added.
Tata Power saw a 5.05% increase in revenue to Rs 15,391 crore in Q3, up from Rs 14,651 crore in the same quarter last year. Net profit rose by 8.15% to Rs 1,031 crore versus Rs 953 crore year-on-year.
Sinha stated that while renewable energy will remain a key growth driver, other businesses will also contribute to the company’s growth.
“Renewables will play a very important role because nearly 60% of our capex goes there. But we will also be growing in our transmission, distribution, and pumped hydro and hydro businesses,” the top executive said.
The capital expenditure that Tata Power has made is continuing to be the reason why all of its businesses are performing better, Sinha explained.
“We have now done a huge amount of capex. It is the impact of the capital expenditure that today all our businesses have started doing much better,” he said.
Talking about the challenges in the Mundra Ultra Mega Power Project (UMPP), Sinha mentioned that it is now a matter of the past.
“Mundra was a problem, but under Section 11, today it is cost neutral and it continues to operate in Section 11 because of the huge demand for power in the country. The Mundra issue has become much smaller today than what it was five years back,” it said.
Tata Power had halted operations at the Mundra Power Plant in 2020 due to losses but resumed them last year.
“We need to move on and say how our existing businesses are becoming much larger in terms of their contribution to the profit and Ebitda and margins. This will only improve because we are doing very good quality investments, and they will give much higher returns going forward,” Sinha said.
Shares of Tata Power Co. rose 3.6% during intraday trade on the NSE to touch a high of Rs 375 apiece. The stock was up at Rs 367.30 at 12:35 pm, while the benchmark Nifty 50 was flat at 23,742.10 points.
. Read more on Business by NDTV Profit.Net profit of Tata Power in Q3 rose by 8.15% to Rs 1,031 crore versus Rs 953 crore year-on-year. Read MoreBusiness, Markets, Quarterly Earnings
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