Tata Power reported earnings for the June-ended quarter with revenue up 54 percent boosted by transmission and distribution and there has been a positive surprise on the margin front. Praveer Sinha, MD and CEO at Tata Power discussed the performance.

This is the seventh consecutive quarter where the company has shown improvement in all the parameters.

“I think we are on very solid footing, very solid foundation and I do expect this momentum will continue in the next quarters also,” he said.

“We have done a lot of things starting from cleaning up of our balance sheet, the deleveraging that we have done and that has helped us to save the interest cost, in our performance we have gone for cluster business, our thermal generation continues to do exceedingly well and that will continue in the coming quarters,” he added.

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The transmission and distribution performance has been improving steadily.

"Every year we are adding a large number of capacity in Mumbai and going forward we will also take up greenfield projects. On distribution, Four DISCOMs got added during the last financial year. The whole impact will start coming now as we move forward,” Sinha elaborated.

On the renewables side, the EPC continues to do well. “You will see large number of projects getting completed in Q2FY22 and Q3FY22,” he shared.

Sinha expects margins to improve.

“We are very confident that our distribution business will do very well in the coming quarters,” he said.

In terms of divestment of Zambia and Georgia assets, he mentioned, “We will be able to divest in this financial year. Some of the other non-core investments that we have, we are looking at divesting some of those also. So we do expect there will be good turnaround in terms of our balance sheet also.”

On the renewables push, the management seemed enthusiastic but cautious.

“There have been more aberrations but we have been very cautious and careful and some of the bids that we did last year, we have also won in last quarter have been very reasonable bids. We do see an opportunity not only for pure solar or pure wind project but also hybrid projects. Our focus is to provide value-added services,” said Sinha.

For the full interview, watch the accompanying video.

(Edited by : Abhishek Jha)

First Published:Aug 9, 2021 1:45 PM IST