Tata Power Q2 Results: Profit Beats Estimates On Better Realisation

Profit beats estimates on all-around performance, up 6% on higher operating margins.

<div class="paragraphs"><p>(Source: Unsplash)</p></div>
(Source: Unsplash)

Tata Power Co.’s second-quarter profit beat analyst estimates on improved realisation per unit and better operating margins.

Net profit of one of India's largest independent power producers rose 5.84% sequentially to Rs 935 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 813.6-crore consensus estimate of analysts tracked by Bloomberg.

Tata Power Q2 FY23 Highlights (QoQ):

  • Revenue from operations although fell 3% to Rs 14030.37 crore, against an estimate of Rs 14,495.5-crore. It was up 49% YoY.

  • Ebitda rose 5% to Rs 1760.4 crore, compared with the Rs 1,953.1-crore forecast.

  • Ebitda margin stood at 12.5%, against 11.61% in the previous quarter.

On year-on-year basis, the consolidated net profit and revenue rose 85% and 49%, respectively, on account of higher plant availability in Mundra, higher sales across distribution companies, and capacity addition in renewables, the company said.

The company has witnessed strong performance from all of business clusters of generation, transmission, distribution, including Odisha, and Renewables, said Praveer Sinha, chief executive officer and managing director at Tata Power.

"The fact that our PAT has increased for 12th consecutive quarters demonstrates the strong foundations upon which each of these businesses have been built."

The company is working towards strengthening its presence across the entire green and clean energy value chain. "We are building smart, sustainable and customised clean-energy products and solutions for our more than 12 million (1.2 crore) consumers across rural and urban India in order to become the preferred power utility of their choice,” Sinha said.

Shares of Tata Power closed lower 0.40% before the results were announced, compared with a 0.34% rise in the benchmark BSE Sensex.