Tata Power Q1FY23 Results: Huge growth - Excellent performance across businesses

Tata Power Q1FY23 Results: Tata Power on Tuesday announced its results for Q1FY23 reporting a 90% YoY increase in consolidated quarterly PAT as compared to Q1FY22, registering its 11th consecutive year-on-year quarterly growth in PAT.

Quarterly Highlights – Q1FY23

-Consolidated PAT before Exceptional Items up by 90% at ₹884 crore vs ₹466 crore in Q1FY22 (due to improved performance across all businesses mainly profit from Coal Companies)

-Consolidated Revenue up by 48% at ₹14,776 crore vs ₹9,974 crore in Q1FY22

-Consolidated EBITDA stood at ₹2,107 crore vs ₹2,365 crore in Q1FY22 (due to favourable regulatory order in Mundra in PY)

-Standalone PAT up by 19% at ₹421 crore as compared to ₹354 crore in Q1FY22 (due to higher dividend income from overseas subsidiary)

-Standalone EBITDA stood at ₹1,271 crore as compared to ₹1,405 crore in Q1FY22 (due to favourable regulatory order in Mundra in PY)

Commenting on the company’s performance, Dr. Praveer Sinha, CEO & MD at Tata Power said, “We have started the new fiscal year on a solid note with all of our business clusters - Generation, Transmission, Distribution, including Odisha, and Renewables - performing very well. This is aptly reflected in our 11th consecutive quarter of PAT growth. We have a robust growth trajectory with stable long-term cost structures and competitiveness across businesses. We are offering a wide range of energy services across the entire value chain along with cutting-edge technologies and superior project execution capabilities. As a future-ready EaaS company, we are well poised to contribute towards India's green energy transition."

Key Business Highlights in Q1FY23:

Renewables:

·      The total renewable capacity of Tata Power is 5,524 MW, with an installed capacity of 3,634 MW and 1,890 MW under various stages of implementation.

·      Signed an MoU with the Tamil Nadu State Government for ₹3,000 crore investment for setting up a greenfield 4 GW Solar Cell and Module Plant

·      Achieved an order book of over ₹14,500 crore in EPC utility-scale projects

·      Commissioned 234 MW of in-house projects

·      Won 600 MW capacity in SECI Hybrid Tranche V bid

·      Commissioned 370 MW of Utility Scale EPC Projects for third party customers

·      EPC projects of 1.7 GW awarded - 1,000 MW from SJVN, 300 MW NHPC CPSU III and 400 MW MSEDCL Hybrid

·      Installed over 75,000 solar pumps with 11,300 installed in Q1FY23, with an extensive presence in Jharkhand, Rajasthan and Haryana

·      Installed 190+ Microgrids Units serving more than 16,000 customers across India

Solar Rooftop:

·      Cumulative solar rooftop portfolio expanded to 1,000 + MW, with installations across roof spaces, floating solar, ground mounted / open access

·      Achieved an order book pipeline of ₹750+ crore at the end of Q1, FY23

·      Launched six new schemes with multiple financing partners focusing on providing easier and faster financing options for Residential & MSME customers across the country

·      Joined hands with Tata Motors to install a 7 MWp solar rooftop expansion project in Pune. This is the third phase of a joint 17 MWp on-site solar project developed by the both the companies of which 10 MWp has been installed earlier

·      Expanded Channel Partner Network to 370+ with presence in 240+ districts

EV Charging:

·      Powering Green Mobility through pan India EV charging Infra- set up a network of 2,350+ Public and Semi-Public EV Chargers with another 1,400+ chargers in various stages of installation. Installed 18,500+ Home chargers and 240+ Bus charging points across India

·      Entered into a strategic partnership with Hyundai Motor India Ltd. to install fast chargers (DC 60 kW) at 34 EV dealer locations in 29 cities. This was in addition to our earlier tie-ups with Tata Motors, Jaguar Land Rover, MG Motor India, and TVS Motors for setting up EV infra

·      Installed 150 green energy powered EV charging stations across Mumbai covering residential societies, malls, commercial complexes, and petrol pumps

·         Partnered with Kolte-Patil Developers, a leading real estate player to set up EV charging stations across its projects in Pune, Mumbai, and Bengaluru for providing comprehensive charging solutions to EV owners. Tata Power is now the preferred EV charging infrastructure provider in the country. It has entered into partnerships with leading real estate players across major Indian cities

Transmission & Distribution (T&D):

·      Completed acquisition of 100% of stake in NRSS XXXVI Transmission Ltd on 4th April through Resurgent Power

·      NCLT approval received by Resurgent for acquisition of 100% stake in South- East UP Power Transmission Company Limited

·      Installed 2,90,000 Smart Meters in Delhi and 60,000 in Mumbai; Smart meter drive also rolled out across all four Odisha Discoms

·      Added 18,102 Green Consumers having annualized consumption of 194 MUs in Mumbai

·      Tata Power-DDL, a joint venture of Tata Power and the Government of Delhi, completed two decades of successful operations on July 1, 2022

·      Tata Power-DDL successfully managed to meet an all-time high peak load of 2,172 MW on June 28, 2022

·      SCADA control centre operationalized at TPWODL

·      Uniform Mobile Application launched for all Odisha Discoms to track and manage interruptions like PSD, ESD, BD, and Supply Failures at 33KV and 11KV

·      Powerlinks managed Drone-based patrolling of 225 critical towers across Northern and Eastern Regions & also digitised O&M patrolling process across its seven sites

Corporate Social Responsibility and Sustainability:

·      Ranked amongst India's Top 10 sustainable companies based on the strength of its alignment with the United Nations Sustainable Development Goals (SDGs) in 2021

·      Recognized by the 2021 Capri Global Capital Hurun India Impact 50 ranking (No.3) for its work in several critical areas including Clean Water & Sanitation, Affordable & Clean Energy, and Quality Education

·      Tata Power joined the Task Force for Climate-Related Disclosures (TCFD) thereby strengthening its Climate Risk Assessments

·      Voluntarily reported on Business Responsibility and Sustainability Reporting (BRSR) ahead of the SEBI mandate for top 1,000 companies to report on BRSR from FY23 in its 103rd Integrated Report for FY22

·      TP Renewable Microgrid joined hands with Usha Silai School to provide sewing machines and impart training through Sarvodaya Ashram, its NGO partner, to women in villages. The initiative to benefit women across 200 villages in UP & Bihar

·      Tata Power’s Mundra Thermal Power Station in association with Kutch Fodder Fruit & Forest Development Trust (KFFFDT) set up one of India's largest traditional (desi) seed banks. The seed bank is benefitting the local farmers

·      Under its Home Automation range 'Tata Power EZ Home', launched a new AI-Powered PIR (Passive Infrared) Motion Sensor to provide smart energy solutions to help consumers conserve energy and reduce electricity bills, thus reinforcing company's #DoGreen pledge

·      Tata Power Renewables Energy Ltd. piloted Urja - Lab-on-the-bike initiative at Pokhran, Rajasthan. An experiential learning initiative based on STEM education for students to develop understanding of sustainable sources of energy

Creating a Future-ready Workforce:

·      Tata Power strives to be the employer of choice. The efforts of aiding leadership development for high-potential women employees including generational and PwD diversity agenda in the formal D&I Charter have resulted in excellent people management and productivity. The gender ratio has touched 14.4%. Furthermore, the company has created an IE-based productivity framework for resource optimization and talent utilization for business growth. This was achieved by upgrading employees with skills in mature businesses (thermal) and redeploying them to the new business development projects

·      Building up on efforts focusing on human rights through TCoC, national/ international standards like SA 8000, OHSAS, ISO (9000, 14000, 45001), BIS, GRI standards, and commitment to UNGC principles, ILO principles, UNSDG and Science Based Targets initiative (SBTi). Proactively taking up human rights impact assessment to strengthen efforts in this direction

·      Launched Entrepreneurship in Residence program to encourage employees with smart ideas to turn into entrepreneurs within the organization through empowerment, co-creation, and co-ownership

·      Powering green hiring; managing high-volume campus recruitment through a digital hiring platform

·      Tata Power Skill Development Institute to train 3,000 youth in green energy jobs in FY23 and will scale up the numbers to 5,000 by 2025 to support India’s Green Energy Transition

Awards & Recognitions:

·      Tata Power featured in the 'Employers of the Future' list by Fortune India 2022.

·      Won KelpHR PoSH Awards® Safe Workplace Award for the third consecutive year

·      Rated as the one of the 'Most Respected Companies' by Business World in an industry wide survey

·      Tata Power Solar won the ‘RE ASSETS 2022’ award under the category of 'Best Performance Enhancement Innovation of the Year - PID effect'

·      Tata Power Renewables Energy Ltd. won the 'Best Performance Enhancement Innovation Award FY22' under the category Project Performance Enhancement Awards (Wind) for the 49.5 MW Agaswadi wind farm (Maharashtra)

·      Tata Power-DDL won ICC Social impact Awards 2022 for promoting Gender Equality & Women Empowerment.

·      Tata Power's flagship biodiversity conservation initiative 'Act for Mahseer' won Corporate Social Crusader of the Year award at IAA's Olive Crown Awards