Tata Power Q3 Results Claims Net Profit Rises by 22%
In the third quarter of 2020-21, up 22% year-on-year driven by better performance at its Mundra plant and interest cost savings after debt reduction, Company reported a net profit of Rs 318 crore.
Tata Power NSE - 2.86 %
In the December quarter, up 8% on year, the Tata group’s power utility reported a consolidated revenue of Rs 7,740 crore. The company said that its arm Coastal Gujarat Power (CGPL), which rund the Mundra unit, has repaid the entire bank loan as a part of the company’s business restructuring plan.
“As the company's business is undergoing a huge transformation, we are restructuring our business model based on sustainable and profitable growth. With an intent to overcome our legacy issues, Tata Power has fully repaid the entire bank loan of CGPL aggregating to Rs 4,150 crore,” Praveer Sinha, chief executive officer and managing director, said in a press statement.
The company said it added 30 megawatts of renewable energy capacity year-to-date in FY21, and has 1,247 mw under construction.
“We are confident of monetizing our Renewable Energy assets through an InvIT (infrastructure investment trust). This will give us the necessary capital for investing in growth and also reduce our debt substantially,” Sinha said.