Tata power's bottom line turns around in FY16

Tata Power Company (TPCL) has declared its Q4FY16 on Monday. The company’s revenue has increased by 13.78 per cent to Rs 9375 crore in Q4FY16 on a yearly basis. Its EBITDA has declined by 2.46 per cent to Rs 1914 crore in Q4FY16 as compared to same period in previous financial year. TPCL’s EBITDA margin has contracted by 340 basis points to 20.41 per cent in Q4FY16 on a yearly basis. The company’s Net Profit has increased by more than two folds to Rs 360 crore in Q4FY16 as compared to same period in previous fiscal year. Its Net Profit margin has expanded by 191 basis points to 3.84 per cent in Q4FY16 on a yearly basis.

On yearly front, TPCL’s top line has decreased by 3.6 per cent to Rs 34367 crore in FY16 as compared to previous financial year. The company’s EBITDA too has reduced by 9.94 per cent to Rs 6940 crore in FY16 on a yearly basis. Its EBITDA margin has contracted by 142 basis points to 20.2 per cent in FY16 as compared to previous fiscal year. TPCL has posted Net Profit of Rs 168 crore in FY16 against Net Loss of Rs 260 crore in FY15.

TPCL’s focus on operational improvements have shown great results. The company’s subsidiaries and plants have shown strong performance despite very challenging circumstances. Meanwhile, Central Electricity Regulatory Commission (CERC) would help resolve the impending issue of fuel-under recovery at Coastal Gujarat Power Limited's Mundra Ultra Mega Power Projects (UMPP) soon.

TPCL operates in the power segment. The company has installed gross generation capacity of 8750 megawatts in India. Its power segment consists of generation, transmission and distribution of electricity. Its presence in various segments of the power sector includes fuel security and logistics, generation (thermal, hydro, solar and wind), transmission, and distribution and trading. The Company is also engaged in offering defence electronics, engineering, project contracts management services, coal bed methane and property development.