Tata Power AGM | Company Plans Capex Of Over Rs 75,000 Cr In Next 5 Years: N Chandrasekaran

Tata Power declared dividend of Rs 1.75 per share in FY22

Natarajan Chandrasekaran, chairman of Tata Power and Tata Sons.

The AGM of Tata Power was held on Thursday. Tata Power has announced that it plans a capex of over Rs 75,000 crore in the next five years in renewables.

Natarajan Chandrasekaran, chairman of Tata Power and Tata Sons, in his speech, said, “I thank all the members for joining this meeting. I hope the members are safe and in good health. Due to the coronavirus concerns, lockdown and social distancing norms, we are holding this Annual General Meeting (AGM) through video conference. This is in compliance with the directions of the Ministry of Corporate Affairs. A live streaming of this meeting is also being webcast on NSDL’s website. The company has taken the requisite steps to enable members to participate and vote on the items being considered at this AGM.”

Here are some of the key highlights of Chandrasekaran’s address.

• Tata Power plans a capex of over Rs 75,000 crore in the next five years in renewables
• Rs 14,000 crore consolidated capex in FY23 with Rs 10,000 crore in renewables
• Tata Power holds strong solar EPC order book Rs 13,000 crore
• Tata Power added 707 Mw capacity in FY22 in renewables
• Looking ahead, Tata Power confident to deliver on financials and ESG commitments
• Company plans to increase green energy share to 60 per cent over next five years
• Company has three key goals — carbon net zero by 2045, 100 per cent water neutral by 2030, zero waste to landfills before 2030
• Company declared dividend of Rs 1.75 per share in FY22
• Tata Power's generation revenue up 28 per cent in FY22, YoY
• The ROCE during FY22 increased to 7.8 per cent from 7.2 per cent a year ago
• Tata Power looking to be consumer centric company via several initiatives such as smart metering, EV charging, solar roof top
• Strong performance was delivered in T&D during FY22 through acquisition of discoms in Odisha
• Increase in revenue was due to Odisha discoms, renewable additions

The chairman also shared the consolidated financials of the company.

• Consolidated revenues in the year increased by 28 per cent to Rs 42,576 crore as compared to Rs 33,239 crore in the previous year. The increase in revenue growth was mainly due to full year operation of Odisha Discoms, renewable capacity addition and execution of major solar EPC projects
• Consolidated PAT increased by 50 per cent to Rs 2,156 crore as compared to Rs 1,439 crore in the previous year. The increase was mainly due to improved performance across all businesses, full year operations of Odisha Discoms and lower finance cost
• Consolidated Net Debt / Underlying EBIDTA ratio has improved from 4.1 to 3.9 from FY21 to FY22 reinforcing the Company’s commitment to maintain comfortable debt position for sustainable growth. Consolidated Net Debt/Equity has remained largely in line with the previous year even after repayment of Unsecured Perpetual Securities of Rs 1,500 crore and capex of Rs 7,268 crore in FY22
• The company contributed significantly towards creating value for the stakeholders as demonstrated through improved Consolidated Return on Capital employed which increased to 7.8% as compared to 7.2 per cent in the previous year and Consolidated Return on Equity which increased to 9.5 per cent as compared to 6 per cent in the previous year