Tata Power Company Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Revenues came in at | 9374 crore up 13.8% YoY, higher that I-Direct estimates of | 9037 crore. On a segmental basis, power segment...

TPCL's consolidated operating profit after adjustment for regulatory income grew by 17.4% yoy in 4QFY16 to Rs19.1bn in 4QFY16 compared to Rs16.2bn in 4QFY15 aided by better performance of TPDDL, TPTCL, reduction in transmission charges and lower fuel (coal) cost in Coastal Gujarat Power (CGPL), Mundra (at US$44 per tonne from US$51 per tonne). TPCL has reported Rs3.6bn consolidated net profit, registering 125% yoy growth due to strong operational performance at subsidiaries level coupled with lower fuel cost. TPCL's net profit has been positively impacted by lower tax outgo (down by Rs1.48bn yoy). However, it had exceptional item relating to...

Tata Power Company (TPCL) reported consolidated revenue (after adjustment for regulatory income), which was down 1.5% yoy to Rs87.2bn in 3QFY16 vs. Rs88.6bn in 3QFY15, however, consolidated operating profit after adjusting for regulatory income was up 23.7% yoy to Rs18.7bn. TPCL reported Rs240mn consolidated net profit, however, adj. net profit stood up 7% yoy at Rs2.12bn, below our expectation of Rs2.4bn. We believe most of the near-term risks in terms of losses from Mundra projects and lower coal prices have already been reflected in the share price, therefore,...

Tata Power Company (TPCL) reported consolidated revenue, up 11.2% yoy to Rs95.4bn in 2QFY16 vs. Rs85.8bn in 2QFY15 due to higher sales from power business, which was however, offset by lower price realisation from coal subsidiaries. Conversely, TPCL reported Rs2.4bn consolidated net profit (our expectation was Rs1bn) in 2QFY16 compared to Rs0.77bn net loss in 2QFY15,...

Eyes on favourable tariff order; Negatives priced in The consolidated revenue of Tata Power Company (TPCL) was up 6.1% yoy to Rs92.3bn in 1QFY16 vs. Rs87.1bn yoy in 1QFY15 due to higher sales from power division, which was offset by lower price realisation from coal companies. However, TPCL reported Rs2.4bn consolidated net profit (ours was Rs2.0bn) in 1QFY16 vs Rs1.11bn net loss in 1QFY15, aided by improvement in operating margins by 451bps on lower fuel cost in CGPL Mundra and improved performance of Mumbai operations. We believe most of the near-term risks like Mundra tariff issue and...

In August 2014, the Supreme Court had stayed an interim order by the APTEL allowing Tata Power to charge higher prices from procurers than agreed upon in the Power Purchase Agreements (PPAs). The apex court directed the tribunal to dispose of the matter speedily. On July 21, 2014, APTEL passed an interim order, which partially upheld Central Electricity Regulatory Authority (CERC) order, by allowing an increase of 52 paisa per unit to Tata Power for the electricity produced from the Mundra-based plants. The higher tariff was allowed due to a sharp surge in Indonesian coal price after...

Buy on dips to Rs 68.5 - Rs 71 for target of Rs 84.5 in one quarter

Tata Powers 4QFY15 recurring PBT of Rs 5.4bn was far ahead of our estimate of Rs 1.2bn due to better than expected profitability from the coal mines and Mundra UMPP. The company has not booked compensation (Rs 1.6/7.6bn for 4QFY15/FY15) due from beneficiaries of Mundra UMPP as the matter remain sub judice.