Tata Power Q3 net profit surges double at ₹1,052 crore
1 min read . Updated: 03 Feb 2023, 05:22 PM IST
Premium- Total income rose to ₹14,401.95 crore in the quarter from ₹11,018.73 crore in the same period a year ago
Tata Power on Friday said that its consolidated net profit for the quarter ending December 2022, nearly doubled to ₹1,052.14 crore. With the help of higher revenues, the company was able to increase its profit from ₹551.89 crore in December 2021.
The total income of Tata Power jumped to ₹14,401.95 crore in the quarter from ₹11,018.73 crore in the same period a year ago.
Tata Power's Profit Before Tax stood at ₹1,864.02 crore for the quarter ending December 2022, which was a substantial jump from ₹788.49 crore for the same quarter last year.
The company informed in a statement that after it recognized revenue based on the tariff notified by the Ministry of Power and orders of the Central Electricity Regulatory Commission (CERC).
"On 5th May 2022, Ministry of Power ("MoP") issued directions under Section 11 of the Electricity Act, 2003 to all imported coal-based power plants including Mundra Power plant to operate and generate power to their full capacity. Accordingly, the Company has declared availability and supplied power as per the MoP directions from 6th May, 2022 to 31st December 2022 and recognized revenue based on the tariff notified by MoP," the statement said.
"On 13th September 2022 and 3rd January, 2023, Central Electricity Regulatory Commission ("CERC") passed favourable orders to compensate adverse financial impact to the Company for power supplied under MoP directions and accordingly, the Company has recognized revenue based on these CERC orders. Revenue for the quarter ended 30th September, 2022 and 31st December, 2022 includes an amount of ₹151 crore and ₹439 crore relating to earlier quarters respectively," it added.
The company has reported a jump in Net Worth from ₹21,707.36 crore last year to ₹26,889.85 crore in the quarter ending December 2022.
"During the quarter ended 30th September, 2022, the Group has obtained all necessary approvals pursuant to the agreements signed on 14th April, 2022 with Green Forest New Energies Bidco Ltd. (UK) ("Investors") and accordingly the investors has invested ₹2,000 crore in Tata Power Renewable Energy Limited ("TPREL"), subsidiary of the Group on preferential basis which resulted in dilution of 6.06% equity stake in TPREL. Additional infusion of ₹2,000 crore will be concluded in accordance with the terms of the agreements," the company statement said.
