Tata Power Company Ltd. share price target

Q3 PAT at Rs 6.3 bn beat our estimate of Rs 5.7 bn mainly due to lower-than-expected losses at Mundra UMPP on improving operational metrics. Up-to-mark performance by coal companies (EBITDA up 55% YoY) helped to partially offset Mundra losses and one-off at Maithon plant.

Tata Power Company Ltd Q3FY18 results comment Revenue fell by 8.57% to Rs. 6949.91 Cr in Q3FY18 when compared to the previous quarter. On the other hand, it grew by 5.71% when compared with Q3FY17.

Dispose its Strategic Engineering Division (SED), part of its standalone operations. It generated EBITDA of ~INR600m in FY17. Sell its investment in Tata Ceramics, ~57% subsidiary. It had a carrying value of INR91m, revenue of ~INR464m and PAT loss of INR5.9m in FY17. Sell investment in Tata Projects, ~48% associate. It has a carrying value of ~INR4.9b, revenue of ~INR60b and PAT of ~INR1.3b in FY17. Sell stake in Panatone Finvest, ~39% associate that owns ~88m shares in Tata Communication (TCOM). At TCOM's CMP, the attributable value is ~INR23b

Consolidated revenue grew by just 1% YoY in Q2FY18 primarily due to weak performance by its Delhi discom and power trading businesses. Improved earnings of coal companies and renewable businesses helped to offset...

Q2 PAT at Rs 2.7 bn was above our estimate of Rs 2.2 bn despite one-off of Rs 1.5 bn (Rs 1.1 bn Docomo and Rs 350 mn Rithala plant), but sharply below sreet's expectation at Rs 4.4 bn.

TPCL's standalone revenue came in at Rs18.2bn vs. Rs17.9bn 2QFY17. PAT before exceptional item of Rs1.1bn stood at Rs1.6bn (on higher interest on Walwhan acquisition debt and other borrowings) vs. Rs4.9bn in 2QFY17 (on higher dividend from subsidiaries and interest income of Rs0.9bn from CGPL). Renewable business reported Rs1.7bn profit vs. Rs0.8bn in Q2FY17. Consolidated PAT before one-off impact of Rs1.5bn, which includes provisioning for DoCoMo & Rithala plant declined to Rs3.8bn vs. Rs4.3bn in 2QFY17. Notably, MPL, IPTC (Zambia), and...

Tata Power's (TPWR) 2QFY18 adj. consolidated PAT grew 14% YoY to INR3.8b (est. INR3.6b). The PAT is adjusted for exceptional charge of INR1.5b pertaining to Tata Teleservices and impairment of Rithala plant. The growth was driven by net benefit (Mundra & Coal) of higher coal prices, RE and higher generation at Maithon. Mundra+Coal: The under-recovery at Mundra was down from INR0.93/kWh in 1Q to INR0.70/kWh on higher availability (85% vs. 61% in 1Q) and savings in fuel coal. FoB cost of coal was unchanged QoQ (at USD59/t). Coal mining JVs PAT was up ~19% QoQ (6.5x YoY) to INR3.3b on higher coal prices. Mundra...

Tata Power Company (TPCL) has posted an improved performance in 1QFY18 with its consolidated net profit rising by 126% YoY to Rs1.64bn (vs. Rs0.72bn in 1QFY17) due to strong performance by the coal subsidiaries, renewable business and better operational performance. Notably, renewable business generated Rs1.09bn PAT in 1QFY18 compared to Rs0.26bn in 1QFY17. Consolidated revenue rose by 2% YoY to Rs67.2bn mainly due to improved revenue from Welspun Renewable Energy (WREPL). Though tariff issue at Mundra UMPP and operational issues in Mumbai Licence area have been impacting TPCL's stock performance over last 3-4 years, we believe that these issues have already been factored in the share price. Hence, we...

Q1FY18 PAT at Rs 1.6 bn (vs. estimate of Rs 3 bn) was dented by higher losses at Mundra UMPP due to surge in imported coal price (EBITDA loss of Rs 0.77 bn vs. positive Rs 2.2 bn YoY)

Revenue decreased by 2.77% to Rs. 6968.62 Cr in Q1FY18 when compared to the previous quarter Revenue decreased by 2.77% to Rs. 6968.62 Cr in Q1FY18 when compared to the previous quarter