Tata Power Company (TATAPOWER) Q1 24/25 earnings summary

Executive summary

• Achieved 19th consecutive quarter of EBITDA growth and 31% YoY PAT growth in Q1 FY25, with PAT at ₹1,189 Cr and revenue up 12% YoY to ₹16,810 Cr.

• Market capitalization surpassed ₹1.46 trillion; credit rating upgraded to AA+/Stable by ICRA & CARE.

• Clean & Green energy capacity at 41% of portfolio, set to reach 56% post-pipeline completion.

• Major operational milestones: 1 lakh rooftop solar installations, 5,569 EV charging points, and 12.36 lakh smart meters installed.

• Final dividend of ₹2.00 per share (₹639 crore total) for FY24 was approved and paid in July 2024.

Financial highlights

• Q1 FY25 revenue: ₹17,293.62 crore (+12% YoY); PAT: ₹1,188.63 crore (+31% YoY); EBITDA: ₹3,350 Cr (+11% YoY); operating margin at 14%.

• Net debt increased to ₹42,467 Cr due to higher capex and working capital; net debt/EBITDA below 3; net debt/equity at 1.08.

• Delhi distribution business saw a sharp operating profit increase to INR 554 crore in Q1, aided by a one-time tariff order impact of INR 163 crore.

• Renewables segment revenue: ₹2,382 Cr (+14% YoY); EBITDA: ₹954 Cr (+5% YoY); PAT: ₹273 Cr (+14% YoY).

• Earnings per share (EPS) after regulatory deferral balances was ₹3.04 for Q1 FY25.

Outlook and guidance

• CapEx guidance for FY25 is INR 20,000 crore, with 55-60% allocated to renewables, 30% to transmission/distribution, and 10-15% to thermal, pumped hydro, and Bhutan projects.

• Clean & Green portfolio targeted to reach 70% of capacity by 2030 and 100% by 2045.

• Over 3 GW of renewables to be commissioned in FY25 and over 4 GW in FY26, including both own and third-party projects.

• Focus on scaling rooftop solar via PM Surya Ghar Yojna and expanding EV charging infrastructure.

• Power supply from Mundra Power Plant extended by Ministry of Power until October 15, 2024.