Thread by @SampalikCapital

#tatapower

Let's deep-dive into Tata Power with long #Threads 🧵

Vision: Empower a billion lives through sustainable, affordable and innovative energy solutions.

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#TataGroup

#tatapower
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It is one of the few #stocks that we accumulated in 2020 #stockmarketcrash with long-term view.

So, let's go in detail about Tata Power to understand its biz., future prospect, potential growth etc...

#stockmarkets #sharemarket #investing #StockMarketindia

#tatapower
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Before we proceed in detail about Tata Power, request you to please go through quoted thread on 'Megatrends for Energy', which gives an idea for potential growth of Tata power in all 4 pillars.

#TataGroup #StockMarketindia #sharemarket

#tatapower
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⚡️Aspirations that drive Tata Power forward:

#TataGroup

#tatapower
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So strategy is:
1⃣ Expand 'Solar & Hybrid' capacities from presently 4 GW ➡️15 GW by 2025➡️25 GW by 2030

2⃣ Increases 'Clean & Green' energy share from presently ~32%➡️60% by 2025➡️80% by 2030

3⃣Achieve carbon neutrality by 2050

So, huge focus on 'RENEWABLE'!

#tatapower
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Before we proceed more on strategy, here is detailed state-wise operating profile as per Annual Report-2021.
Analyze to the capacity, distribution, horizontal & vertical market share etc...

#tatapower
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So, coming back to 'strategy' to achieve the 'aspiration' of 2025, 2030 & 2050, here are 10 SBOs with targets that set the roadmap:
#TataGroup

#tatapower
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So, apart from 'aspirational' targets, other focus areas are:
1.Distribution biz. customer base: ~1.2 Cr.➡️4 Cr. by FY26
2.EV Charging: ~1000➡️1 L by FY26
3.Debt reduction
4.Develop future energy product & service (Energy-as-a-Service, EaaS)

#tatapower
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And above focus areas/targets further narrow down our study to:
1⃣Renewable energy biz. i.e. Tata Power Renewable Energy Ltd. (TPREL)
2⃣Integrated approach to Solar i.e. Tata Power Solar System Ltd. (TPSSL)
3⃣Next-gen power solution (EV etc.)
4⃣Distribution Biz.

#TataPower
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1⃣Tata Power Renewable Energy Ltd(TPREL)

⚡️TPREL is a wholly-owned subsidiary of TP
⚡️The principal business is to generate electricity from renewable (RE)- Solar+Wind
⚡️It develops, constructs & operates RE assets
⚡️Primary investment vehicle for the clean & RE

#tatapower
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Further TPREL has 23 operating subsidiaries (direct & in-direct) as shown in above pic.

⚡️TPREL has target to add ~2GW/annum till 2030 to achieve aspirational goal of Tata Power!

Some of under-going projects are:

#StockMarketindia #investing #TataGroup

#tatapower
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For financial reporting, 'consolidated' TPREL biz. is reported under 2 heads:
1. TPREL and its subsidiaries excluding WREL
2. WREL and its subsidiaries

And below is Q2FY22 results for both.

#TataGroup #StockMarketindia #investing #sharemarket #portfolio

#tatapower
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And here is contribution of TPREL's subsidiaries in overall Tata Power financial statement (Q2FY22).

However, as renewable is future growth potential, this contribution is going to increase in coming years. And one need to track it very closely.

#TataGroup

#tatapower
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Next vertical for analysis is:
2⃣ Tata Power Solar System Ltd. (TPSSL)

⚡️Founded in 1989, originally formed as a joint venture between Tata Power and British Petroleum Solar (BP Solar).
⚡️Now operates as wholly-owned subsidiary of Tata Power.

#TataGroup

#tatapower
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Key domain of TPSSL are:
1. Solar Module & Cells manufacturing with capacity of 1,100 MW
2. Utility scale solar project EPC: for self & others' solar power project
3. Solar rooftop EPC: Market Leader, commissioned ~500 MW
4. Solar Pumps: ~50,000 pumps installed

#tatapower
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TPSSL- Solar EPC status as of Q2FY22:

#tatapower
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TPSSL-Solar Rooftop:
1. No.1 Solar rooftop EPC co. for 7 yrs in a row
2. offer trunky solution residential, industrial & institutional
3. highlight from Q2FY22:

#tatapower
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TPSSL - Solar Pumps highlight from Q2FY22

#tatapower
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So, finally, here is contribution of TPSSL in 'consolidated' Tata Power financial statement.

As with TPREL, TPSSL also has good growth potential due to renewable focus and large EPC order. Hence need to track the development in TPSSL also.

#TataGroup #stocks

#TataPower
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Among high growth biz. verticals of Tata Power, till now we have covered the 2, i.e.:
1⃣Tata Power Renewable Energy Ltd. (TPREL)
2⃣Tata Power Solar System Ltd. (TPSSL)

Next will cover the 3rd one i.e.
3⃣Next-gen power solution (EV etc.)

#tatapower
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⚡️EV Charging is one the consumer oriented biz. that it sees as high growth potential due to #ElectricVehicles revolution.

⚡️It is MARKET LEADER in developing EV ecosystem
⚡️It is exponentially expanding its numbers across geography

#TataGroup #evcharging

#tatapower
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⚡️As per #NitiAayog report, the charging demand is expected to grow MULTIFOLD by 2030.
⚡️And this is why Tata Power is very bullish & shaping itself as market leader
⚡️In past, it has done agreements with many key players for developing EV ecosystem

#evcharging

#tatapower
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⚡️One of the benefit in #evcharging is being 'prosumers' i.e. an agent that consumes electricity from the grid & can also inject electricity into the grid
⚡️Through 'Net metering', electricity produced using RE get 'deducted' from the total electricity consumed

#tatapower
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Another segment in this biz. vertical is 'Home Automation solutions', where it has developed an #IoT based home automation solution and introduced home automation products as a part of its Smart Energy Management Tool and launched 'Tata Power EZ Home App'.

#tatapower
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Will now cover the last 'HIGH Growth potential' biz. vertical i.e.
4⃣Power Distribution License (DL)/ Distribution Franchise (DF).

⚡️It currently serve 4 regions: Mumbai, Delhi, Ajmer & Odisha
⚡️Current consumer base ~1.2 Crores

#tatapower
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⚡️Mumbai is operated by Tata Power since 1915, AT&C losses of 0.71%
⚡️Delhi by TATA Power-DDL (2002), loss-7.33%
⚡️Ajmer DF by TP Ajmer Distribution Limited (TPADL) (2017), loss-10.2%
⚡️Central, South, Western & Northern Odisha as PPP model (2021), loss:~25-30%

#tatapower
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Big opportunities in Power Distribution segment:
⚡️Improving the AT&C of Odisha thus becomes more profitable
⚡️More & more states will go for DL/DF model in coming years and Tata Power will be preferred choice due to its experience & brand value

#TataGroup

#tatapower
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#Q3 #ResultUpdate

And here is what happened with what I was just tweeted about improvement in losses of Odisha distribution.

And TATA Power posted update on that in their Q3FY22 presentation uploaded minutes before😎

#stockmarkets #TataGroup #StocksInFocus