Tata Power Q1 results preview: EBITDA likely to rise 58% YoY; Mundra Plant's performance key monitorable

Tata Power Q1 results preview: Tata Power is expected to report good operational performance for the quarter ended June 30, 2023, when it releases its numbers tomorrow (August 9). The Tata Group power company is estimated to post consolidated revenue of Rs 15,636 crore, up 7.9 per cent on a year-on-year (YoY) basis, according to Zee Business Research. The company posted revenue of Rs 14,495.48 crore in the year-ago period. EBITDA, or earnings before interest, taxes, depreciation, and amortisation, is expected to increase 58 per cent YoY to Rs 2,655 crore, while the EBITDA margin is seen at 16.98 per cent against 11.61 per cent logged in the corresponding quarter of the previous fiscal.

Net profit, or profit after tax (PAT), is likely to fall 11 per cent YoY to Rs 710 crore. The company had reported a profit of Rs 794.6 crore in the year-ago period.

The research desk further said that the company will get support from its high-potential renewable business results. The solar business will see good execution. Apart from these, Mundra Power Plant may see improvements as Section 11 has been implemented again. Besides, the coal business is expected to take a hit due to the fall in coal prices. Further, the firm is expected to see soft results from Indonesia's coal mines.

Mundra Plant's performance and power demand outlook will be key things to watch out for.

Tata Power's share price

Shares of Tata Power have risen 14.8 per cent over the last three months (till August 7 close). In comparison, the benchmark Nifty50 index has gained 11.76 per cent during the window, Trendlyne data show.

About Tata Power 

Tata Power is one of India’s largest integrated power companies, and together with its subsidiaries and jointly controlled entities, it has an installed and managed capacity of 14,302 MW. The company has a presence across the entire power value chain: generation of renewable as well as conventional power, including hydro and thermal energy, transmission and distribution, and trading.

Tata Power Q4 Results 

For the previous quarter (March 2023), Tata Power posted an over 48 per cent rise in its consolidated net profit to Rs 939 crore, mainly on the back of higher revenues. The consolidated net profit of the company was Rs 632 crore in the quarter ended on March 31, 2022, according to a statement. The consolidated revenue rose 6 per cent to Rs 12,755 crore during the quarter under review from Rs 12,085 crore a year ago, due to higher sales across distribution companies and capacity addition in renewables.

In the 2022–23 fiscal year, its consolidated net profit also rose to Rs 3,810 crore from Rs 2,156 crore in FY22.