Tata Power Reports 4.5% Decline in Q4 Net Profit to Rs 996 Crore Amid Gujarat Plant Shutdown

Tata Power Reports 4.5% Drop in Q4 Net Profit Due to Hydro and Thermal Power Segment Weakness

Tata Power, a leading firm in the Tata Group, reported a 4.5% drop in its fourth-quarter net profit on Tuesday, primarily due to a decline in the hydro and thermal power segment. The company's consolidated net profit fell to Rs 996 crore from Rs 1,043 crore a year ago, with the hydro and thermal power segment experiencing a 39% profit drop.

Key Financials

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Tata Power's revenue from operations fell approximately 13% to Rs 14,900 crore, while expenses decreased by 8%. The decline in revenue and profit can be attributed to the shutdown of a key 4-gigawatt imported coal-fired plant in Gujarat, which had not been operational since August last year. However, the plant resumed operations in April.

The company's focus on creating long-term value through disciplined growth, operational excellence, and strategic partnerships has been reflected in its sustained performance. Tata Power has been strengthening its capabilities across generation, transmission, distribution, and customer-centric solutions, aligning with India's clean energy ambitions.

The shutdown of the Gujarat plant is expected to have a temporary impact on the company's operations, given the disruptions in liquefied natural gas supply and reduced gas-based power generation. Domestic coal is expected to remain relatively more attractive for power generation, as forecasts of a strong El Nino weather pattern are likely to bring hotter and drier conditions across Asia in the summer.

Tata Power shares closed 3.3% lower at Rs 419 apiece on May 12, following the announcement of its Q4 results.

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