The 7 reports from 3 analysts offering long term price targets
for Tata Power Company Ltd. have an average target of 62.50. The consensus estimate
represents a downside of -25.60%
from the last price of 84.00.
Way2Wealth Brokers Pvt. Ltd. (CIN U67120KA2000PTC027628) SEBI Rgn. No. : INH200002739. Registered Office: Rukmini Towers, 3rd& 4th Floor, # 3/1, Platform Road, Sheshadripuram, Bangalore - 560 020, Website: www.way2wealth.com Email: research@way2wealth.comWay2wealth Research is also available on Bloomberg WTWL W2W Lighthouse A Quick Perspective Tata Power Company Ltd is India's largest integrated private power company with a significant international presence. The company has an installed generation capacity of 12,743 MW in India and a presence in all the segments of power sector viz. Fuel & Logistics Generation (thermal hydro solar and wind) Transmission Distribution and...
Tata Power (TPWR)'s results reflect the recovery in its EPC businesses and better working of its Mundra-Coal JV hedge. Adj. PAT stood at INR3.0b and was significantly higher v/s our est. of INR2.3b. Divestment-related measures (international shipping business, Cennergi, Arutmin, and Tata SED) and the infusion of INR26b from promoter has aided debt reduction. As EPC businesses recover and we build in the expectation of some normalization in WC by FY22, we view the risk-reward as favorable. 1) Possible benefit from the merger of CGPL and Tata Power...
19 August 2020 Tata Power (TPWR) highlighted its focus on addressing legacy issues with Over the past few months, the co.s deleveraging process has been preferential issue to Tata Sons. plans to continue with its asset monetization plans by exiting non-core assets and InvIT for renewables. expects the InvIT transaction to be completed this year. TPWR plans to reduce net debt to INR250b by the end of FY21 and sustain it at these levels. plans to simplify its holding structure and generate synergies from the merger of CGPL, Tata Power Solar, and Aftaab with TPWR. The process for the same requires the NCLTs approval (which could take 412 months). plans to reduce its debt by INR40b using preference and divestment-related proceeds, in turn generating interest cost savings of INR3.8b. In terms of the PPA amendment for CGPL, the benefit of compensatory tariff at current prices stands at INR2.5b.
The Tata Power Company Limited generates and supplies electricity. The Company constructs and operates independent power plants, as well as specializes in transmission and distribution of electricity. Tata Power...
Divestment-related measures (part receipt of International Shipping business, Arutmin, and Tata SED) and the infusion of INR26b from promoters would continue to aid debt reduction. The approval of a tariff hike at Mundra, possible benefits from the merger of CGPL & Tata Power Solar with TPWR, and favorable InvIT valuations provide upsides. Divestment-related measures (International Shipping business, Arutmin, and Tata SED) and approval for the infusion of INR26b from promoters would continue to aid debt reduction. The approval of a tariff hike at Mundra, merger of CGPL & Tata Power Solar with TPWR, and favorable InvIT valuations provide upsides. It expects these to be at a similar While certain clarity is pending with respect to upcoming new regulations for Divestment-related measures (International Shipping business, Arutmin, and Tata SED) and approval for the infusion of INR26b from promoters would With normalization in its EPC businesses and some WC, and lower interest costs, we expect EPS to increase at a 910% CAGR over FY2023.
19 May 2020 Tata Powers (TPWR) 4QFY20 results reflect the benefit of better working of the Mundra-Coal JV hedge offset by lower renewable (EPC + generation) and S/A performance. Adj. PAT stood at INR2.1b (v/s INR2.3b in the previous year). Going forward, divestment related measures could aid cash inflow and subsequent debt repayment. However, with continued renewable capex, and given the current environment, we await further steps on this front. Successful renegotiation of Mundra PPA provides an upside risk. PAT for TPWR came in at INR2.1b (v/s est. INR2.2b) on better working of the Mundra-Coal JV hedge, which was partly offset by lower performance within RE (generation + EPC) and S/A.
The Tata Power Company Limited generates and supplies electricity. The Company constructs and operates independent power plants, as well as specializes in transmission and distribution of electricity. It delivers its...
PAT was up 27% YoY to INR3.5b (in-line) on better performance of the Mundra-Coal JV hedge. PAT has been adjusted for INR1.6b impact of taxes on KPC and coal SPVs, INR0.7b of dividend from Cennergi (held for sale) and INR0.5b of one-time gains on other income. Operational performance (EBITDA and PAT of JV companies) was up 10% YoY to INR21.6b (v/s est. Adjusting for INR0.6b prior period related taxes at KPC, increased 12% YoY to INR4b. Given the decline in coal prices, there was no significant impact of DMO obligation for its JVs.
The Tata Power Company Limited generates and supplies electricity. The Company constructs and operates independent power plants, as well as specializes in transmission and distribution of electricity. It delivers its...
Tata Power's (TPWR) 1QFY20 consol. operational performance (EBITDA and PAT of JVs) increased 19% YoY to INR23.4b, led by a better performance of the MundraCoal JV hedge and Maithon. Adj. PAT increased 19% YoY to INR2.6b (in-line). Mundra (EBITDA) and coal JVs (PAT) increased 27% YoY to INR4.2b. Given the decline in coal prices, there was no significant impact of DMO obligation for its JVs. Further, tariff escalation at Mundra on account of timing difference also lowered its under-recoveries, in our view. RE (ex-standalone) EBITDA increased 10% YoY to INR5.4b, led by a 21% YoY...
28 January 2019 Tata Power (TPWR) reported a loss of INR1.1b on a consolidated basis in 3QFY19, as against a profit of INR2.7b in the previous quarter and our estimate of INR2.9b. The performance was dragged by a higher-than-expected cost increase, lower realization at the coal JV, and a rise in under-recoveries at Mundra. PAT is adjusted for an INR2.7b gain on deferred tax reversal and an INR0.3b loss from discounted operations. Operational performance (EBITDA and PAT of JV companies) was declined 64% QoQ. The hedge between the two was impacted by a sharp increase in COGS, lower realization at coal JVs due to mix, Indonesias DMO impact, and some one-offs. Mundra under- recoveries increased INR0.13/kWh QoQ to INR0.95/kWh. Mumbai EBITDA (proxy standalone) was steady QoQ, while Delhis PAT increased 68% QoQ, aided by consultancy income. Regulated equity was broadly flat QoQ in both the circles.
After about a year-long competitive bidding process, BEST DISCOM found it economical to extend the existing PPA with Tata Power's Trombay and hydro power plants due to transmission constraints in Mumbai. Mumbai distribution circle relies heavily on embedded generation.
29 October 2018 Tata Powers (TPWR) 2QFY19 consol. PAT declined 28% YoY (+25% QoQ) to prior-period revenue of ~INR0.9b, net of loss on discontinued operations of ~INR0.3b. Operational performance (EBITDA and PAT of JV companies) was in line. increased 25% QoQ to INR4.1b, driven by INR depreciation, higher coal prices and savings from blending of low-GCV coal at Mundra. Indonesias DMO obligation impacted coal JVs PAT by ~INR0.6b. Cost of production in coal JVs is rising, which could offset gains from higher prices. Regulatory assets declined by ~5% QoQ to INR41b, aiding working capital improvement in Delhi. RE EBITDA increased 8% YoY (-7% QoQ) to INR4.6b, driven by an increase in generation by 34% YoY.
Underlying earnings (that is, PBT before exceptional and other income, but including PAT of JVs and associates) grew ~8% in FY18. The benefit of higher coal prices (net) and almost doubling of renewable energy (RE) business was largely offset by higher finance cost. Finance cost increased due to leveraged acquisition of RE business from Welspun (was for part of the year in FY17) and FX loss
Consolidated revenue grew by 16% YoY to Rs71.4bn vs. Rs61.6bn, while PAT quadrupled to Rs17.3bn vs. Rs4bn. CGPL's loss rose to Rs4.3bn from Rs3bn in 1QFY18 on higher fuel cost and Rs0.98bn MTM loss led by INR depreciation. However, CGPL's revenue rose by 19% YoY to Rs15.3bn on higher realisation (at Rs2.7/unit vs. Rs2.3/unit in 1QFY18) & improved PLF (66% vs. 59% in 1QFY18). Despite 3.5% YoY decline in coal sales to 13.9mnT, net realisation FOB remained flat at US$64.8/tonne, while gross profit declined to US$19.8/tonne from US$22.8/tonne in...
6 June 2018 Over the last year, TPWR has accelerated the pace of sale of non-core assets. The reported consolidated net debt to equity will decline from 2.7x in FY17 to 2.3x post divestments. TPWR is also evaluating the performance of its overseas power assets for possible consolidation/monetization. CGPL continues engaging beneficiaries for a sustainable resolution of partial under- recovery of fuel cost. CGPL is optimizing fuel cost by blending of low GCV coal, which is available at a steeper discount. CGPL is also in discussion with DISCOMs to sell power beyond minimum commitment of 80% at merchant tariff. The regulated PPA for the Trombay power plant with BEST is valid until March 2019 (after the recent extension by one year). BEST is seeking competitive bids, but, based on the initial results (two rounds have been completed), the competitive price may be higher than regulated supply by Trombay.
Mundra UMPP Continues to Incur Higher Loss; Maintain HOLD Tata Power Company (TPCL) has posted consolidated (reported) Rs14.8bn net profit in 4QFY18 vs. Rs2.3bn net loss in 4QFY17 led by exceptional gains to the tune of Rs12.4bn. Its consolidated revenue rose by 14.2% YoY to Rs78.5bn vs. Rs68.8bn in 4QFY17. However, adjusted PBT declined by 31.5% YoY to Rs2.5bn from Rs3.6bn in 4QFY17 owing to lower dividend from associate companies, higher losses at Mundra Plant (CGPL) along with higher interest and depreciation cost. Looking ahead, we believe that any meaningful upside in valuation is capped owing to near-term overhang relating to losses at CGPL. Thus, we maintain our HOLD recommendation...
