Tata Power Solar has seen a 52% net sales growth in 2016-17, which is more than two and a half times in the past two years, as the figure reached INR 22.62 billion ($ 353 million) in the 2016-17 fiscal year, up from INR 14.9 billion ($ 233 million) in the previous year.
Moreover, the company reported a 330% increase in profit after tax during the fiscal year, describing it as a remarkable achievement given the extremely low EPC margins, which come from a freefall of solar tariffs in India, with the record low solar tariff bid accepted in 2017 (INR 2.44 ($ 0.037)/kWh), and the pressures faced by the domestic manufacturing sector, primarily resulting from the alleged Chinese, Taiwanese and Malaysian dumping, and injuries sustained by Indian solar companies, which are currently being investigated.
The company stated that a key strategy that drove this change was shifting from product focus to service focus (EPC). Noting that up until 2012-13, its core business was manufacturing, with a sizable focus on lighting products and some share of thermal products, Tata Power Solar notes that afterwards it has significantly increased focus on EPC, becoming one of the key players in the utility as well as the rooftop space.
The company has also conducted significant expansion and modernization of its cell and module facility in Bengaluru. Within two years it has doubled its module capacity to 400 MW and increased its cell manufacturing capacity to 300 MW.
“We are happy that the company has turned profitable in a short span, which is a remarkable achievement. Clean energy continues to be our key focus whether its is generation or manufacturing business. With a strong pipeline due to enhanced business volumes and efficient operational performance, we are set to achieve the ultimate objective of being the largest integrated player,” said Anil Sardana, Tata Power CEO.