India's Tata Power says quarterly profit doubles on high demand

High-tension power lines are pictured outside a Tata Power sub station in the suburbs of Mumbai
High-tension power lines are pictured outside a Tata Power sub station in the suburbs of Mumbai, India, August 8, 2017. REUTERS/Shailesh Andrade

BENGALURU, Feb 3 (Reuters) - India's Tata Power Co Ltd (TTPW.NS) said on Friday its quarterly profit more than doubled, helped by increased power demand due to the country's harsher winter and festive season.

The energy arm of the Tata conglomerate said consolidated net profit surged to 9.45 billion rupees ($115.4 million) in the third quarter ended Dec. 31, from 4.26 billion rupees a year earlier.

India's power industry, in general, was boosted by increased heating needs in December and a fall in prices of key raw materials, while analysts have also flagged significant growth in demand from industrial states.

Tata Power's revenue from operations rose 29.5% to 141.29 billion rupees, including a one-off gain of 4.39 billion rupees.

That gain was the compensation India's power regulator gave Tata Power – and other power companies that rely on imported coal – for making them supply electricity at full capacity at a government-notified tariff last year.

The Mumbai-based company's cost of power purchased grew 21.7% to 44.21 billion rupees in the quarter.

Its revenue from transmission and distribution, which contributed the most to revenue, rose 15.9% to 82.56 billion rupees, while power generation revenue grew 71.7%, and renewable revenue rose 5.1%.

Tata Power's earnings before interest, taxes, depreciation and amortization (EBITDA) rose due to capacity addition in renewables and better performance across all businesses.

The company's shares have fallen 1.16% so far this year, following a 6% decrease in 2022. ($1 = 81.8660 Indian rupees)

Reporting by Meenakshi Maidas in Bengaluru; Editing by Savio D'Souza

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