Execution key to further gains in Tata Power after Q2

Tata Power's Q2FY25 results were above consensus despite challenges like low plant availability at Mundra and Odisha discom operations getting affected by rain.

- DEVANGSHU DATTA

A positive development for the power major included module manufacturing hitting nearly 100 per cent capacity utilisation. The board has approved an investment proposal for a 1GW pumped storage project (PSP).

The consolidated operating profit of ₹3,740 crore in Q2FY25, was driven by ramped-up solar manufacturing and operational efficiency. Revenue was at ₹15,690 crore (flat Y-o-Y) for Q2FY25. The adjusted net profit (APAT) was at ₹1,070 crore, a rise of 20 per cent Y-o-Y. In H1FY25, net sales were at ₹32,990 crore, with operating profit at ₹7,330 crore and APAT was at ₹1890 crore, up 7 per cent, 21 per cent and up 11 per cent Y-o-Y, respectively. The H2FY25 is expected to be much stronger with revenues climbing by 40 per cent Y-o-Y, according to some analysts, along with similar gains in operating profit and net profit. Importantly, S&P Global Ratings, ICRA and CARE, have all upgraded ratings, which will lower interest costs.