Tata Power Q1 results: Shares sink as profits surge 90% in Q1

Power giant Tata Power has reported an 89.73% YoY growth in profits for the quarter ended in June 2022.

The profit for the quarter came in at Rs 883.54 crores as opposed to Rs 465.69 crores reported in the corresponding quarter last year. However, the shares of the stock slid by over 3%.

Revenues of the company grew 43% YoY to come in at Rs 14,495.48 crores, also surging 21% QoQ.

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Revenues saw robust growth across all segments as revenues from Generation grew 80.2% YoY, Renewables grew 32% YoY, Transmission and Distribution 39% & Others 67%.

However, other income declined 19.4% YoY to Rs 143.30 crores. The company's expenses jumped a sharp 55% as the cost of power, cost of fuel, raw materials, and miscellaneous expenses jumped over 40% each. The cost of fuel surged a massive 157% during the quarter in question.

While commenting on the performance of the company, its MD & CEO Praveer Sinha said, "This is aptly reflected in our 11th consecutive quarter of PAT (profit after tax) growth. We have a robust growth trajectory with stable long-term cost structures and competitiveness across businesses. As a future-ready EaaS (Energy as a service) company, we are well poised to contribute towards India's green energy transition,"

In its earnings release, the company disclosed that Resurgent Power Ventures Pte Ltd., a JV between Tata Power & ICICI and other international investors, had completed the acquisition of NRSS XXXVI Transmission Ltd. for cash consideration and settlement of outstanding debt.

The stock of the company slid down as it witnessed a gap-down opening of Rs 220.90 per share. The stock declined 3.6% on Wednesday to close at Rs 218 per share.

Article by Aman Agarwal.

This news piece is brought to you in association with jobaaj.com


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