Tata Power’s net profit expected to be ₹ 10000 crore by FY30, contribution of renewable segment will be 50% – share of renewables in tata power profit to reach 5000 crore by fy30
Tata Power: Tata Power, which has registered a net profit of ₹4100 crore in FY 2024, expects its profit to increase by 2.5 times in the next six years. The company expects its net profit to reach ₹10,000 crore by FY30, of which the renewable segment will contribute 50 per cent. In contrast, the share of conventional sources of energy is expected to decline from the current 44 percent to just 11 percent by then.
Focusing on clean energy, the company will invest up to Rs 1.46 lakh crore for capital expenditure between FY25 and FY30, of which 60% will be for renewable energy. Tata Power on Friday said the company’s clean power capacity will reach 23 GW by FY30, from 6.7 GW currently.
Tata Power will be the fourth company with revenue of ₹1 lakh crore
Interestingly, Tata Power will become the fourth company to reach ₹1 lakh crore revenue, if the company achieves its target. Moreover, the operating profit (EBITDA) is likely to reach the level of ₹30000 crore from the current level of ₹12700 crore.
There are very few companies in India whose minimum annual turnover is ₹1 lakh crore. According to Bloomberg non-financial sector data, only 22 companies have been able to do so during FY24.
Tata Power also enjoys better leverage ratios than its peers. The company’s net debt to equity declined by 1.1 times in September, compared to 2.2 times in FY19. Tata Power’s net debt stood at ₹43,580 crore at the end of September.
Performance of Tata Power shares
Shares of Tata Power have gained 32 percent so far in 2024, which is a better performance than all the big companies of the group except Trent. Shares of Trent have more than doubled since January, while TCS and Tata Motors have gained 18% and 5% during the same period.
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