Shares of Tata Power Company closed 1.30% higher at Rs 241.10 on Thursday after the company reported a robust performance in the quarter ending December 2021. Tata Power’s consolidated net profit for the October-December 2021 quarter was Rs 553 crore on account of higher revenues. This was the ninth consecutive quarter of profit growth, the company reported.

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Consolidated profit after tax was up 74% year on year at Rs 552 crore from Rs 318 crore on the back of strong all-round business performance by all verticals, the company said.

The consolidated operating profit for the quarter fell 6.62% year on year to Rs 1,633.76 crore as it was impacted by a rise in the cost of coal imported for the Mundra ultra mega power project and the power purchased for the distribution business.

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Consolidated revenue increased by 42% to Rs 11,015 crore from Rs 7,756 crore in the year-ago period due to expansion of operations in Odisha discoms, higher project execution by Tata Power Solar Systems Ltd (TPSSL), and strong performance of all other segments.

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The revenue from the T&D business almost doubled to Rs 7,126 crore in the December quarter compared with Rs 3,881 crore in the year-ago period. Revenue from the renewables business jumped almost 50% to Rs 1,823 crore from Rs 1,240 crore in a year-ago period.

From the power generation branch, revenue declined marginally to Rs 3,128 crore from Rs 3,407 crore in the corresponding quarter.

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In Q3 FY22, the coal business generated a revenue of Rs 3,473 and a net profit of Rs 623 crore but the high income was offset by the lower generation from the Mundra UMPP.

“Tata Power has delivered a strong financial performance for the 9th consecutive quarter. All our business clusters have contributed significantly despite facing pandemic-related challenges, demonstrating tremendous resilience, strength and agility,” said Praveer Sinha, CEO and Managing Director of Tata Power.

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The company is in the process of getting stakeholders’ approval for the scheme of merger of Coastal Gujarat Power with the holding company. The merger will enable Tata Power to take over the entire debt of the loss-making Mundra ultra mega power project in the books of the parent company.

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The company’s net debt widened to Rs 39,536 crore from Rs 36,870 in the same quarter last year. Net debt to equity rose to 1.58 times as compared to 1.51 times a year ago.