InvestorQ : How were the latest quarterly results of Tata Power for the Sep-20 quarter?
Arti Chavan made post

How were the latest quarterly results of Tata Power for the Sep-20 quarter?

Rutuja Nigam answered.
2 years ago

Tata Power, the power generator and distributor of the Tata Group, announced its quarterly results on 10 November for the Sep-20 quarter. For a company that has been under a process of business redesign, the company put up a relatively good performance.

Tata Power reported a 15% growth in top line sales revenues to Rs.8413 crore on the back of better traction in power distribution business. Currently, the biggest source of revenues for Tata Power comes from distribution of power followed by generation.

There is also a third component to their revenues from renewable energy. While this is quite small at this point of time, it is expected to grow rapidly in the coming quarters as the Tata group reduces its focus on the environmentally unfriendly thermal power sources.

Apart from the top line, the net profit for Tata Power was up by 10% at Rs.371 crore for the Sep-20 quarter. The numbers had been under pressure in the last few quarters and this shows a clear turnaround of the company performance.

It may be recollected that Tata Power, which has a defence wing in the form of an SED division, recently transferred assets of the SED division to Tata Advanced Systems, a subsidiary company of Tata Sons. This is part of a large group plan to focus just on core competency and also to consolidate defence under one head for better synergies.