Mumbai: Tata Power said on Wednesday its consolidated profit after tax moved up by 10 per cent at Rs 268 crore in the first quarter of current fiscal as compared to Rs 243 crore in Q1 FY20.
The company maintained stable performance despite lower profits from solar engineering, procurement and construction (EPC) businesses mainly on account of lower financing cost and stable performance across clusters.
The revenue dipped to Rs 6,671 crore in Q1 FY21 as compared to Rs 7,567 crore in Q1 FY20 due to lower power demand, delay in solar EPC businesses on account of Covid-19 and lower coal freight-on-board (FOB) prices.
The company also reported healthy cash generation due to strong collection and tighter control over working capital.
“All our business clusters have reported a robust performance despite the challenges presented by the ongoing pandemic,” said CEO and Managing Director Praveer Sinha.
“We aim to continue our progress in our low carbon journey by achieving 50 per cent generation from clean and green sources by 2025 and set new benchmarks in operational efficiencies.”
Sinha said the company’s proposed renewable infrastructure investment trust (InvIT) will be the growth engine and the company intends to grow this to be India’s largest renewable InvIT.
At present, it has about 2.6 gigawatt of operating plants and 1.5 GW of capacity in pipeline, taking the total capacity to 4.1 GW.
This InvIT provides the option to recycle capital once the assets are operational. Further, the InvIT strategy enables Tata Power to raise capital at lower cost post stabilisation of assets and grow the portfolio while it deconsolidates the debt.
Apart from adding capacity in the renewable generation in the next five years, Tata Power plans to scale up the solar cells and modules manufacturing business along with the solar EPC business.
Moving forward, the company also plans to scale up the growth of the consumer-facing energy solution businesses like electric vehicle charging, smart metering, retail rooftop solar, solar pumps, home automation and solar micro grids in rural areas.