Tata Power's Q3 net profit rises by 38%; appoints N. Chandrasekaran as Additional Director

Tata Power reported 38% year-on-year (YoY) rise in consolidated net profit in its third quarter ended December 31, 2016, results.

The company consolidated net profit of Rs 599.20 crore, rising by 38.30% from Rs 433.25 crore in the corresponding period of the previous year. The net profit also grew by 78.20% from Rs 336.24 crore recorded in the preceding quarter.

Tata Power said, “PAT rose due to improved performance by key Indian subsidiaries & coal companies coupled with a favourable tax credit.”

Consolidated total income from operations was at Rs 6683.74 crore, declining by 9.10% year-on-year (YoY) and quarter-on-quarter (QoQ). This was mainly due to lower revenue in standalone on account lower power purchase costs, lower trading at TPTCL.

While consolidated operating profit (EBITDA) improved at Rs 1555 crore compared to Rs 1335 crore a year ago same period. The company said, “This was because of recent solar acquisition, on account of full capacity tie up with MPL and no favourable tariff order impact as was the case in previous year quarter (PYQ) for TPDDL.

Power business grew sequentially by 1.43% at Rs 6254.85 crore against Rs 6166.09 crore of same period a year ago.

Anil Sardana, CEO & Managing Director, Tata Power said, “During the third quarter of FY16-17, Tata Power has improved profitability and has maintained strong operational performance across all business verticals. With a gross installed generation capacity of 10,496 mega watts, we continue to be India's largest integrated power player as also largest green generator.”

He added, “Our subsidiaries continue to perform well despite challenging business environment. We are confident that our strong growth trajectory will continue thanks to our focus on operational excellence and responsible growth.”

In a meeting held on Friday, Tata Power said it has appointed N. Chandrasekaran as Additional Director of the company with effect from February 11, 2017. 

It said in a statement, "In terms of the Company's Articles of Association, Tata Sons Limited (Tata Sons), the Promoter of the Company, has the right to nominate the Chairman of the Board of Directors of the Company as along as the word 'TATA' is associated with the name of the Company. Vide their letter dated February 10, 2017."