Tata Power Q3FY20 Results: On account of ease in global coal prices and Mundra plant’s quick recovery from its underperformance, Tata Power has reported strong third-quarter numbers. It has reported third-quarter profit at 12 per cent while its margins have gone up by 2 per cent to 25.5 per cent. The power company has reported 8 per cent growth in its earnings before interest, tax, depreciation and amortization (EBITDA).
Speaking on the Q3FY20 results Praveer Sinha, MD & CEO at Tata Power said, “Third quarter number of Tata Power is praiseworthy and it could happen because of the consistent power-packed performance that the company has shown in last two quarters. And at the same time, ease in global coal prices have also helped us a lot.” Sinha said that it helped Tata Power to bring down its input cost which led to a rise in profit by up to 12 per cent.
See Zee Business Live TV streaming below:
Praveer Sinha said that the company has performed well on the EBITDA front also as the EBITDA numbers are at 8 per cent higher than the previous quarter, which can be considered a robust performance if it is compared with other power sector company.
However, Sinha gave credit to the Mundra Plant as it has been giving robust numbers in the last three quarters. Speaking on the Mundra Plant recovery from underperformance, Sinha said, “Mundra Power Plant is fast coming out from the underperformance. Last year, its underperformance was at 93 paise which has now come down at 32 paise. If we compare its performance with last quarter, then it has come up from 51 paise to 32 paise, which means Mundra Power has improved around 37 per cent in the last one quarter.
Not ready to give full credit to the easing global coal prices, Sinha said that Tata Power has taken some initiative on coal sourcing that helped them contain coal consumption as well. He said that coal blending helped the company to reduce coal consumption at its various plants, which includes Mundra Power Plant as well. He said that on one hand coal consumption went down and on the other hand global coal prices went southward and this combo of favourable condition helped Tata Power to convert that in monetary gains, which is getting reflected in its third-quarter results.