Expect very good results in renewable business from Q3 onwards: Praveer Sinha, Tata Power
"EPC margins have been under stress because there was a lot of inventory that was lying with us, which we had procured last year before the 31st March deadline and those are now getting utilised in various projects," says Praveer Sinha, CEO & MD, Tata Power.
Just looking at your numbers, while Mundra did well, the renewable PLF was low and lesser margins across the solar EPC as well. When do you anticipate better performance from renewable energy generation specifically?
Praveer Sinha: Well, this is the 19th consecutive quarter in which we have shown growth impact. And I think the way the company is structured now and the foundation that has been laid, you can expect only better results going forward. As you mentioned, Mundra has been cost reflective because it is operating under Section 11 and this will continue for at least one more quarter if not more. The second is we are also seeing an uptake in our renewal business. EPC margins have been under stress because there was a lot of inventory that was lying with us, which we had procured last year before the 31st March deadline and those are now getting utilised in various projects.
We will see much better performance going forward because now we are manufacturing the modules ourselves. The module line is fully commissioned and the cell line will get commissioned partly this month and partly in the next month.
I think you will start seeing very good results in our renewable business from third quarter onwards, much better margins and much better profitability that
