Financial Capital

Creating shared economic value


Our legacy is built on the vision of the Company’s founders, who looked at financial capital as a means of gainfully creating wealth as a custodian of the community’s resources and return it back to the stakeholders. This adds a lot of responsibility on the management to ensure capital allocation does not focus on only financial returns but overall stakeholder return.

Ramesh Subramanyam, CFO

Tata Power endeavours to invest in businesses capable of generating returns in line with expectations of our stakeholders. We seek to optimise returns from business operations as well as from monetisation of non-core assets and investments. Our growth strategy includes investments in renewables, new emerging businesses, including EV charging, home automation and microgrids in remote areas.

We continue to raise funds in line with the prevailing market conditions at an optimal cost. With a century old legacy, Tata Power has remained committed to driving sustainable value creation based on strong business fundamentals, driven by a diversified and growth-oriented business model with a strong focus on efficient capital allocation. Business model realignment and significant improvement in the renewable portfolio has contributed 14% of the total revenue of the Company in FY20.


` 28,948 CRORE

Operating Revenues

` 7,870 CRORE

Operating Profit

` 1,316 CRORE


` 2,271 CRORE

Positive Free Cash
Flow generation


Net Debt/Equity in FY20, an
improvement from 2.2 in FY19


Net Debt/EBITDA in FY20, an
improvement from 6.2 in FY19

Strategic Objectives

Material Topics Addressed

Key Risks Considered

Stakeholder Recommendations Addressed

SDGs Focused


Resolution of CGPL coal cost under-recovery


Deleveraging balance sheet

  • Future ready
  • Impact on business due to change in Coal tax or coal pricing
  • Sustainable investing
  • Availability of costeffective capital
  • High leverage – increased borrowings over last few years primarily due to losses in CGPL
  • Renewal of licence of KPC mine in Indonesia
  • Sale of non-core assets
  • Exit from international joint venture to deleverage balance sheet
  • CGPL turned EBITDA positive in FY20


Our performance in Financial Capital has a significant influence across all other capitals.

Natural Capital


  • Deployment of robots to clear solar panels, thereby reducing maintenance capex

Manufactured Capital


  • ` 692 crore investment in Renewable Energy Capex in FY20

Intellectual Capital


  • Installation of grid-scale, battery-based energy storage system in Rohini, New Delhi (capex of ` 4 crore by TPDDL)
  • Advance metering infrastructure and installation of Smart meters in Radio Frequency (Mesh) network (` 95 crore capex by TPDDL)

Social & Relationship Capital


  • ` 39.97 crore spent on CSR activities in FY20

Human Capital


  • ` 7.25 crore invested in human resource upskilling, training and development in FY20

Strategic focus areas

Economic value creation

Tata Power generated a positive economic value retained figure in FY20 with the reduction in operating costs, aided by the successful implementation of robust cost control measures. The payment to providers of capital was also lower compared to the level witnessed in FY18. Tata Power continues to meet its financial obligations towards suppliers, employees, lenders and shareholders, governments and communities, in a timely manner.


1. Revenue generated including other income and movement in regulatory deferral balance

2. Operating cost including Cost of power purchased, Cost of Fuel, Transmission charges, Raw material consumed, Purchase of finished goods, increase/decrease in WIP, depreciation & other expenses excluding CSR

3. Payment to providers of capital includes finance cost paid, dividend paid to shareholders & Distribution on Unsecured Perpetual Securities

4. Payments to government by country include income tax paid (net of refund received)

Key financial trends and ratios