Tata Power to invest ₹20,000 cr capex in FY25: N Chandrasekaran

Tata Power plans to invest ₹20,000 crore capex in the financial year 2024-25, which will be over and above the ₹12,000 crore invested in FY24, says chairman Natarajan Chandrasekaran, in his speech to shareholders, at the 105th Annual General Meeting (AGM) of the company on July 16.

“A large part of this will be towards accelerating the company’s renewable energy portfolio and balance towards transmission and distribution businesses. The company will also explore participation in small modular nuclear reactors, once the government gives necessary permissions apart from new distribution expansion opportunities in other states, as and when these opportunities arise in line with Government policies” says Chandrasekaran, Chairman, Tata Power.

He also lauded the company’s robust financial and operational performance, saying that it is a sign of its commitment towards consistent growth, financial prudence and project execution excellence. 

Speaking at the AGM, Chandrasekaran also talked about Tata Power’s focus on energy transition, rooftop solar expansion, and EV charging. He says that the company is well positioned to lead India's green energy shift with focus on providing round the clock renewable energy especially to commercial and industrial consumers. He further says that the company eyes aggressive growth in rooftop solar, aiming for increased market share on back of PM Surya Ghar Yojana.

Tata Power is aiming for 15 GW clean energy portfolio in five years from the existing 9 GW, both from existing and ongoing projects. It plans to set up new 4.3GW solar cell and module manufacturing plant in Tamil Nadu.

As per the company, it is fully geared to solarise homes through its ‘Ghar Ghar Solar’ initiative under PM Surya Ghar Yojana. It has executed 2GW+ rooftop projects so far and has an order book of ₹2,800 crore.

As of March 31, 2024, the Tata group company had 4.5 GW of renewable capacity operational and another 5.5 GW of projects under implementation, taking the total green energy portfolio to over 10 GW. Tata Power Renewable Energy’s utility scale EPC order book stands at 2.6 GW worth ₹13,400 crore, while Rooftop solar and Group Captive EPC order book was at ₹2,900 crore.

For the full financial year 2024, the Mumbai-headquartered company clocked consolidated PAT of ₹4,280 crore in FY24, a growth of 12% as compared to ₹3,810 crore in the previous fiscal. The revenue rose 10% to ₹61,542 crore from ₹56,033 crore in FY23, driven by higher availability and plant load factor (PLF) in Mundra and higher execution of projects in Tata Power Solar Systems Ltd (TPSSL). On the operating front, EBITDA stood at ₹12,701, up 26% from ₹10,068 crore in the previous fiscal. The board of the company also recommended a dividend of ₹2 per equity share, subject to shareholders’ approval.