The renewable energy business of Indian utility Tata Power Co Ltd (BOM:500400) booked a net profit of INR 1.25 billion (USD 18.2m/EUR 15.6m) in the fiscal quarter through June 30, marking a decline from INR 1.42 billion a year before.
The decrease was triggered by the lower wind plant load factor and a drop in engineering, procurement and construction (EPC) sales, Tata Power explained. Still, earnings before interest, tax, depreciation and amortisation (EBITDA) at the renewables segment remained steady at INR 5.8 billion, the Indian firm said in a press release.
In the April-June fiscal quarter, Tata Power deployed 100 MW of renewables capacity and secured an additional 400 MW of solar projects in the states of Andhra Pradesh, Karnataka and Maharashtra. Through its subsidiary Tata Power Renewable Energy Ltd (TPREL), last month it signed a power purchase agreement (PPA) to provide 5 MW of solar systems to General Electric (NYSE:GE).
“During the quarter, Tata Power has redesigned its organisation structure to focus on key identified growth areas like renewable generation, transmission, distribution and new and value-added businesses including rooftop solar, smart metering, microgrids in rural areas and setting up of electric vehicle charging units,” said CEO Praveer Sinha. He added that renewables are “the higher contributor to the profitability of the company.”
Tata Power closed its first fiscal quarter with a consolidated net profit of INR 17.35 billion, up 328% in annual terms, as revenues climbed by 16% to INR 71.39 billion. The company says on its website it owns 3,417 MW of renewable energy assets, including 1,188 MW of solar, 1,140 MW of wind and 693 MW of hydropower plants.
(INR 10 = USD 0.146/EUR 0.125)
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