Tata Power Q4 result preview: PAT to grow by 58.8%, revenue by 10.7%

Tata Power, the power company of Tata Group, is likely to report a 58.8 per cent growth in profit after tax (PAT) to Rs 799 crore year-on-year (YoY) for the quarter ended March 31, 2023, according to Zee Business Research.

The power company’s revenue is expected to surge by 10.7 per cent to Rs 13,234 crore compared with the year-ago period. The company is likely to report earnings before interest, taxes, depreciation, and amortisation (EBITDA) at Rs 1,890 crore against Rs 1868.59 crore in the previous quarter. On a YoY basis, EBITDA may rise by 1.1 per cent.

The company's margin — a key measure of profitability for a business — is likely to decline by 130 basis points to 14.3 per cent. Business earnings could grow on the back of better renewable and coal businesses.

The distribution segment can give a boost to the company’s earnings. On the flip side, Tata Power can incur a quarter-on-quarter (QoQ) loss in its Mundra Plant. According to the Zee Business report, the company's engineering, procurement, and construction (EPC) business may decline.

At closing on Wednesday, shares of Tata Power were up nearly 1 per cent on the upside on NSE and quoted at Rs 203.75 apiece. On BSE, the stock traded at Rs 203.8 apiece. Tata Power shares declined over 10 per cent in value in the past six months, a period in which headline indices Sensex and Nifty50 declined 0.2 per cent each.

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