Tata Capital plans to do capital expenditure of Rs 20,000 crore in FY 25

9 May 2024 , 01:35 PM

Tata Power intends to expand its capital spending to ₹20,000 Crore in fiscal year 2024-25, CEO and MD Praveer Sinha stated. The capital expenditure for FY25 will be more than 65 percent higher than the previous year, when the corporation spent ₹12,000 Crore.

Sinha stated that renewables would account for approximately 50% of overall capex, with the remainder going to businesses in other areas like as distribution, transmission, and coal-based plants. He noted that the corporation would fund the capex with internal accruals and some loans.

As of March 31, 2024, Tata Power had 4.5 GW of operational renewable capacity and another 5.5 GW of projects in the works, bringing the entire green energy portfolio to more than 10 GW. The corporation owns 6,277 Ckm (Circuit Kms) of transmission lines, with 1,651 Ckm capacity in the pipeline.

On May 8, Tata Power reported a consolidated net profit of ₹1,045.59 Crore for the fourth quarter of FY23-24, up 11.37% from the previous year, owing to exceptional performance in its core thermal coal generation sector. Its net profit, however, remained constant from the previous quarter, with a profit of ₹1,076 Crore in Q3 FY24.

Tata Power reported that in FY24, the company achieved its highest-ever revenue and EBITDA of ₹61,542 Crore and ₹12,701 Crore, respectively, aided by a strong rising share from core businesses of generation, transmission and distribution, and renewables, which contributed 74% to FY24 PAT compared to 44% in FY23.

At around 1.24 PM, Tata Power was trading 3.78% lower at ₹418.60, against the previous close of ₹435.05 on NSE. The counter touched an intraday high and low of ₹431.25, and ₹417.75, respectively.

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