BENGALURU: Tata Power Co Ltd on Thursday reported a roughly 55% rise in fourth-quarter profit, as increased electricity output ahead of summer boosted its transmission and distribution segment.
Consolidated net profit increased to Rs 7.78 billion ($95.2 million) in the three months ended March 31, compared with Rs 5.03 billion a year earlier, the energy arm of the Tata conglomerate said in an exchange filing.
Transmission and distribution, Tata Power’s largest business, reported a 16.4% jump in revenue to Rs 82.95 billion.
WHY IT MATTERS
India’s power generation grew at the fastest pace in over three decades in the fiscal year ended March 31, a Reuters analysis of government data showed, fuelled by a spike in output from both coal-fired and renewable plants.
Tata Power’s revenue grew 28.7% in the year ended March, while its profit climbed 91.5%.
The federal government in March urged power utilities to expand output to ensure adequate supply during summer months, when demand peaks. It also directed power utilities to undertake maintenance of coal-based plants well in advance and run at full capacity to avoid disruptions during the peak summer months of April and May.
