Tata Power Company Limited is an Indian electric utility company based in Mumbai, Maharashtra, India, and is part of the Tata Group. The core business of the company is to generate, transmit and distribute electricity. Recently the company has announced its Q4 FY22 result and has presented some good figures as well as a strong quarter well. So, let’s discuss the Q4 results of Tata Power in brief in this article as we move ahead
Q4FY22 Result Preview:
- Net Profit or Profit After Tax (PAT) of the company is Rs. 503 Cr. which has grown by 28% on a YoY basis.
- Revenue stood at Rs.12,219 Cr. growing 16% on a YoY basis.
- Tata power has shown a profit for 10 consecutive quarters and also provided a dividend of Rs. 1.75 per share.
- Tata power can maintain its net debt to equity at 1.5 despite making a lot of acquisitions.
Acquisition made by TATA power
- NCLT (National Company Law Tribunal) has approved the merger of CGPL (Coastal Gujarat Power Limited) with TATA power.
- TATA power has also got a coal mining contract which is of 10 years and also expandible.
- Resurgent power venture private limited has made the acquisition of NRSS XXIX Transmission limited by this they will cover the 153 kilometers of transmission line which is associated with Uttarakhand, Rajasthan, and Haryana grid.
- A BlackRock-led consortium including Mubadala investment is going to invest 4000 crores in tata power for renewable energy platform.
Renewable Sector Performance:
- Tata power has made itself renewable oriented.
- Renewable energy portfolio PAT grew by 60% YoY in Q4 FY22.
- Strong acquisition of both large-scale and rooftop solar has been covered by TATA power even though it has a high module cost.
- The order book of the solar rooftop as of 31st march 2022 stands at Rs. 516 crore and 1500+ EV charging stations have been installed public and semi-public another 550 in various stages of installation.
- Tata power has performed better in the renewable business also as it has shown a growth of 56% every quarter YoY.
- Segment-wise a large amount of revenue is contributed by transmission and distribution (54%) in Q4 but renewable is creating its stand by contributing 22%.
- TATA Power can perform all these very smoothly because after acquisition all the assets of other companies will be of tata power, which has helped tata power is growing.
What should investors do?
Tata Power has great potential to grow in the coming period with a favorable positive wave of renewable energy in the country. The financial result especially of Q4 has also shown great numbers. It is of good and reliable stock, and hence an investor should consider this kind of stock and study this.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.