Tata Power Q1 Profit up by 36% yet Topline may be Flat

The largest integrated power company in India, Tata Power share price opened at Rs. 71.15 up by 0.64% touching the intraday high and low at Rs. 71.50 and 71.15 respectively.With reference to the previous letter dated August 03, 2016, Tata Power has disclosed that the meeting of the Board of Directors of the Company to review (i) the Audited Financial Results (Standalone) and (ii) Unaudited Consolidated Financial Results of the Company for the June ’16 quarter end will be kept in hold on August 23, 2016 (Q1).

Analysts hopes power generation volumes at 10,337 million units against 11,170 million units Y-o-Y. Tata Power’s consolidated profit in first quarter is expected to rise 36 percent Y-o-Y to Rs 328 crore because of lower finance and tax expenses, as per average of estimates of analysts polled by CNBC-TV18. Higher profitability at Maithon, higher EBIT spread for Coal and lower losses at Mundra may also bring profit. As of now Tata Power share price is trading at Rs. 71 with an increase of 0.20 points.

The Revenue might be at Rs 9,250 crore in the June 2016 quarter end as compared with Rs 9,235 crore in year-ago period. Analysts also anticipate power generation volumes at 10,337 million units against 11,170 million units on yearly basis. They observe flat volumes at Mundra that may be offset by higher volumes at Mumbai and Delhi circles. Losses may be reduced at Mundra plant because of lower fuel cost and coal processing charges. Coal price decline may diminish profitability in coal business yet may be aided profitability for power business. Tax rate may narrow from over 45 percent to 35 percent in Q1 Y-o-Y. Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) is assumed to fall 5 percent Y-o-Y to Rs 2,073 crore and margin may contract 112 basis points to 22.5 percent in Q1.

The current market cap of the Tata Power share price is observed at Rs. 19027.07 crores. On 13th June Tata Power share price touched its 52 week high at Rs. 77.40 while the 52 week low is seen at Rs. 55. For more details visit Tata Power share price history.