Tata Power announces merger; reports 10 per cent jump in PAT

Private power generator Tata Power reported a 10 per cent jump in Profit After Tax (PAT) for the quarter ended June 2020 at Rs 268 crore on the back of lower financing cost. The company also announced three wholly-owned subsidiaries will be merged with the parent firm.

In the same quarter last financial year, the company had reported a PAT of Rs 243 crore. Consolidated revenue during the June 2020 quarter stood at Rs 6,671 crore as compared to Rs 7,567 crore in the corresponding period last financial year.

In the same quarter last financial year, the company had reported a PAT of Rs 243 crore. Consolidated revenue during the June 2020 quarter stood at Rs 6,671 crore as compared to Rs 7,567 crore in the corresponding period last financial year.

“Three wholly-owned subsidiaries i.e. Coastal Gujarat Power Ltd (CGPL), Tata Power Solar Systems (TPSSL) and Af-Taab Investment Company (Af-Taab) are proposed to be merged with Tata Power (parent company) for greater synergies in financing, compliance and oversight,” the company said in a statement.

It added that the merger is part of a strategic initiative to simplify the group holding structure and a broader plan to set the company for future growth through fiscal consolidation and strengthening of balance sheet.

“The merger aims to achieve the long-term objectives by facilitating efficient use of cash and making available corporate support to the businesses of the said wholly owned subsidiaries as needed,” the company said.

During the June quarter, Tata Power won new renewable energy bids totaling 220 Megawatt and reported sale of ships completed at $212.76 million. Its solar Engineering, Procurement and Construction (EPC) order book stands at Rs 8,700 crore.

The quarter also saw Tata Power taking over the management of CESU, Odisha for distribution of electricity in five circles – Bhubaneshwar, Cuttack, Puri, Paradeep and Dhenekal in the state.

The company had recently announced expansion plans for its network of smart Electric Vehicle charging points from the current 170 to over 700 by end of this financial year, under the brand name EZ Charge.

It has also signed an pact with MG Motors India to deploy 50 Kilowatt DC Superfast chargers at select MG dealership locations and offer end-to-end EV charging solutions to dealerships across India.