Tata Power Q2 Results: Tata Power, the giant company of Tata Group, has announced the results for the September quarter. The company’s consolidated profit declined by 0.7% year-on-year to Rs 919.4 crore. The company’s profit in the same quarter last year was Rs 926.5 crore.
Tata Power’s total income also declined by 1% to Rs 15,544 crore. Last year it was Rs 15,697 crore.
Weakness in EBITDA and margins
Pressure was also visible in Tata Power’s operating results. Tata Power’s EBITDA fell 11.8% to Rs 3,302 crore in the September quarter. Last year it was Rs 3,744 crore. EBITDA margin also declined to 21.2%, from 23.9% last year.
Plan to buy stake in SPV
Along with the results, the company also announced a strategic step. Tata Power has proposed to buy 40% stake in a special purpose vehicle (SPV) for Rs 1,572 crore. This step is being considered to further strengthen the company’s renewable energy and infrastructure portfolio.
Status of Tata Power shares
Tata Power shares closed at Rs 395.50 on Tuesday, down 0.08%. The stock has given a nominal return of 1.05% in the last 6 months. At the same time, the stock has fallen 8.34% in 1 year. The stock has given a multibagger return of 580.72% in the last 5 years. The market cap of Tata Power is Rs 1.26 lakh crore.
What is the business of Tata Power?
Tata Power generates electricity, transmits it through transmission lines and delivers it to homes and businesses. Along with this, the company is increasingly focusing on green energy like solar and wind.
Tata Power also earns money from activities like installing rooftop solar, running EV charging stations, providing battery storage solutions and building small and big solar projects. It is active in both conventional electricity and renewable energy.
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