Tata Power Q2 Results: Net profit rises 7.4% to ₹1,093 crore, revenue falls marginally

Tata Power Q2 Results: Tata Power Co. Ltd announced their July to September quarter results on Wednesday, October 30. The company announced a 7.4 per cent hike in net profits to ₹1,093.08 crore in the second quarter of the financial year 2024-25, compared to ₹1,017.41 crore in the same quarter the previous year, as per the consolidated financial statements, according to Tata Power's BSE filing.

Tata Power Co. Ltd shares closed 0.42 per cent higher at ₹427.15 after Wednesday's trading session, compared to ₹425.35 at the previous market close. The company released the second-quarter results after market operating hours on Wednesday. 

The company's profits rose as the expenses for the quarter ended September 2024 dropped 4.55 per cent to ₹14,082.46 crore, compared to ₹14,754.76 crore in the same period the previous year.

The company also witnessed a 19.64 per cent fall in its fuel cost, which was ₹2,871.69 crore as of the end of the second quarter, compared to ₹3,573.62 crore a year ago.

Tata Power's revenue from operations also fell 0.25 per cent to ₹15,697.67 crore in the July to September quarter, compared to ₹15,738.03 crore in the same quarter the previous year. 

The company's revenue from power generation through hydroelectric and thermal sources dropped 13.35 per cent to ₹4,309.24 crore in the second quarter, compared to ₹4,973.22 in the same period the previous year.

The Transmission and Distribution business witnessed a 7.97 per cent rise to ₹10,207.10 crore, compared to ₹9,453.43 crore a year ago.

Corporate Announcements

The Board of Directors approved the 1000 MW Pumped Storage Hydro Project investment in Bhivpuri, Maharashtra, as the company eyes existing capacity addition.

According to the company statement, it will take 44 months or over three and a half years to add the capacity proposed. The company will finance this ₹5,666 crore investment through 75 per cent debt and 25 per cent equity.

The power company also announced that the Board of Directors has decided to grant 35,26,090 or 35.26 lakh employee stock options (ESOP) with a face value of Re 1 per share, each fully paid up, to eligible Tata Power Co. Ltd employees, according to its exchange filing before releasing the second-quarter results on Wednesday. 

The company also disclosed about a fire incident that occurred at the Cable Vault and subsequently the Control Room of the Trombay Plant, they have filed an insurance claim of nearly ₹221 crore for the damages.