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Tata Power Q1FY22 Result Analysis

Tata Power Q1FY22 Result Analysis

Published on 11 August 2021 Views 80 Comments 1

Consolidated Q1FY22 results


  • The consolidated revenue for Q1FY22 stood at Rs. 9,968 crores. The revenue declined by (-1.6%) on a QoQ basis and increased by 54.5% on a YoY basis.
  • The rise in YoY revenue was majorly due to the acquisition of Odisha DISCOM and strong execution across solar EPC.
  • The operating profit increase by 16.1% on a YoY basis to Rs. 2,365 crores. On a QoQ basis, the operating profit increased by 41.8%.
  • The operating profit margin stood at 24%. In Q1FY21 the margin was 32% and in Q4FY21, the operating profit margin stood at 16%. The margins were impacted due to increase in module prices and AT&C losses during the second COVID wave.
  • In Q1FY22, the Profit Before Tax stood at Rs. 672 crores and it more than doubled as it saw an increase of 121.8% on YoY basis. The PBT has increased steeply by 489.5% when compared on QoQ basis.
  • Profit after tax stood at Rs. 391 crores. The company had PAT of Rs. 207 crores during Q1FY21, registering a growth of 88.9%. Net profit had a small decline of (-0.5%) QoQ. 

Standalone Q1FY22 results

  • The standalone revenue for Q1FY22 stood at Rs. 1,818 crores. The revenue increased by 16.5% on a QoQ basis and by 28.5% on a YoY basis.
  • The operating profit increase by 44.4% on a YoY basis to Rs. 937 crores. On a QoQ basis, the operating profit increased by 29.6%.
  • The operating profit margin stood at 52%. The operating profit margins in Q1FY21 and Q4FY21 were at 46%.
  • In Q1FY22, the Profit Before Tax stood at Rs. 401 crores and saw a huge increase of 322.1% YoY. It has also more than doubled by 124% on a QoQ basis.
  • Profit after tax stood at Rs. 198 crores. The company had a PAT of Rs. 45 crores during Q1FY21, registering a growth of 340%. On a QoQ basis, the Net Profit increased by 26.1%.

Business Highlights

  • Infusion from promoters and divestment measures have led to debt reduction.
  • EPC and Renewables Businesses have a healthy project pipeline.
  • The backlog for solar EPC currently is strong at Rs. 7260 crores.
  • Liquidation across REC business is expected to happen during FY22.
  • The delicensing drive in UTs and some states are leading to bigger opportunities in the DISCOM privatization space.
  • Engineering, Procurement, and Construction (EPC) showed a huge growth of 381% YoY, led by strong execution. The module prices led to orders being executed at lower margins. The new orders received will be benchmarked with new module prices, leading to improved margins.
  • The merger of CGPL with standalone is in the final stages.
  • The company will be partnering with Tata Projects for bidding on good quality greenfield projects in Power Transmission.
  • Odisha Discoms were impacted due to COVID second wave and cyclones, affecting collections and restoration of networks.

Green Energy

  • The green segment has strong momentum as the company enjoys a 40% market share in EV charging segments.
  • The solar pump business saw a growth of 8x while the solar rooftop business also grew by 4x during Q1FY22.
  • The order book is currently highest ever at Rs. 1100 crores.
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