Tata Power Company Ltd. plans to divest its non-core businesses in South Africa, Zambia and some parts of Georgia to focus on India, its Managing Director and Chief Executive Officer Praveer Sinha said.
The proceeds from the sale of international investments would be used for growth within the country, Sinha told BloombergQuint in a post-earnings interaction.
Profit of India's largest power utility for the March quarter declined steeply, hurt by the base effect in the year-ago quarter.
Earnings Highlights (YoY)
- Net profit slumped 95.5 percent to Rs 57.6 crore.
- Revenue rose marginally to Rs 7,230.2 crore from Rs 7,216.9 crore.
- Ebitda fell 1.5 percent to Rs 1,348.7 crore.
- Margin contracted 30 basis points to 18.7 percent.
- Exceptional gain in base quarter worth Rs 1,886.7 crore due to reversal of impairment of Mundra plant.
Sinha said the company performed exceptionally well on an operational basis. “It's only the exceptional items, that are more of the adjustments taking place on an annual basis, where the challenges were seen.”
Focus On Renewable Energy
Tata Power expects to expand its current portfolio in the renewable energy business by 6 to 10 times in five to six years, Sinha said. The company, he said, would bid for up to 20,000 megawatt in capacity in the next three to six months.
Renewable segment has grown in the past year, Sinha said, adding that the company has already added 200 MW capacity to its business, while another 400 MW capacity is under implementation. “We expect the benefits of this to come next year onwards.”
Renewable business will be the mainstay for the company.Praveer Sinha, MD & CEO, Tata Power
The company is also investing in rooftop solar programmes and has expanded to 18 cities till March. It expects to become a 100-city rooftop company by the end of this financial year, according to Sinha.
Mundra Project Update
- Gujarat government has agreed to modify power purchase agreement.
- Expects to receive a final decision from Central Electricity Regulatory Commission in the next few months.
Watch the full interview here:
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
