Tata Power is one of India’s leading power companies, with a diversified portfolio of thermal, hydro, and renewable energy assets. The company has a strong track record of financial performance and is committed to expanding its renewable energy capacity.
Tata Power reported revenue of ₹34,532 crore in FY22, up 12.9% from the previous year. The company’s net profit stood at ₹4,665 crore, up 64.9% from FY21. Tata Power’s operating cash flow stood at ₹7,893 crore in FY22.
- Debt-to-equity ratio: 0.86 (as of March 31, 2022)
- Interest coverage ratio: 3.45 (as of March 31, 2022)
- Return on equity (RoE): 13.3% (as of March 31, 2022)
- Return on capital employed (RoCE): 10.5% (as of March 31, 2022)
Tata Power is committed to expanding its renewable energy capacity. The company is aiming to achieve 100% renewable energy by 2050. In FY22, Tata Power commissioned 1,265 MW of renewable energy capacity
Tata Power’s growth prospects are supported by the following factors:
- Robust demand for electricity: India’s demand for electricity is expected to grow at a CAGR of 7% to 8% over the next few years.
- Expansion of renewable energy capacity: The Indian government is promoting the adoption of renewable energy, which is expected to drive demand for Tata Power’s renewable energy assets.
- Diversified business model: Tata Power’s diversified business model, with a mix of thermal, hydro, and renewable energy assets, provides stability and resilience to its operations.
