India’s Tata Power profit jumps 94.1% on strong energy demand
Tata Power Co Ltd on Friday reported a 94.1 per cent rise in second-quarter profit, with energy consumption remaining strong as economic activity eased due to the lockdown due to the pandemic.
An exchange filing showed that the energy arm of Tata Group’s consolidated net profit rose to 8.19 billion Indian rupees ($99.34 million) for the three months ended September 30, from 4.22 billion rupees a year ago.
Electricity consumption has picked up again and is likely to see an increase in the coming months with the end of monsoon and the continuation of the festive season. A sharp rise in coal prices amid strong demand has also led to a rise in electricity prices.
Consolidated revenue from operations grew 43 per cent to Rs 140.31 billion.
Chief Executive Officer Praveer Sinha said the company has registered strong growth in profit after tax for 12 consecutive quarters across its business segments such as generation, transmission, distribution and renewable energy.
While the company derives most of its revenue from the generation and transmission of electricity, it is looking to grow its renewable energy business aggressively and in April, it secured $525 million in raises from a BlackRock-led consortium.
Revenue from its power generation segment grew 118 percent to Rs 48.34 billion, transmission revenue grew 32.9 percent and renewables revenue grew 7.2 percent.
($1 = 82.4410 Indian Rupee)
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