Tata Power Profit Rises 19% In Third Quarter Beating Estimates
Tata Power posts better-than-expected third quarter profit.
Tata Power Ltd. on Friday posted a 18.7 percent jump in profit in the third quarter of the financial year 2016-17, beating analyst estimates. This was driven by a higher share of profit from associates and joint ventures, which grew by 32 percent year-on-year at Rs 506.4 crore for the quarter under review.
Net profit rose to Rs 599.2 crore in the three months ended December 2016, compared to Rs 504.9 crore in the corresponding period last year. This was higher than the Bloomberg consensus estimates of around Rs 375 crore.
Revenue was up a percent to Rs 6,836 crore in the quarter, the company said in a stock exchange filing. This compares to the total income of Rs 6,764.42 crore in the corresponding quarter of the previous year.
The higher revenue was driven by regulatory income of Rs 152.29 crore for the quarter ended December 31, 2016 as compared to regulatory expenses of Rs 588.73 crore in the corresponding quarter of the previous year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was down by 1.03 percent year-on-year to Rs 1,555.1 crore for the quarter ended December, 2016. Bloomberg poll of analysts estimated EBITDA for the company at Rs 1,571.4 crore for the quarter.
.png?auto=format%2Ccompress)
Meanwhile, EBITDA margin stood at 22.74 percent compared to 19.73 percent in the corresponding quarter of the previous year, up by 300 basis points year-on-year.
Poor performance of Tata Power and CGPL(Mudra Port) mainly dented the operating performance of the company. EBITDA of Tata Power declined 27.85 percent year-on-year to Rs 505 crore as compared to Rs 700 crore in the corresponding quarter of the previous year. While, EBITDA of CGPL(Mudra Ports) fell sharply by 85.46 percent year on year to Rs 33 crore for the quarter under review.
In segment wise break-up, Tata Power’s renewable energy segment grew by 70.87 percent growth year-on-year to Rs 88 crore; while Welspun Renewable Energy, a company which Tata Power recently acquired has contributed Rs 255 crore in the third quarter.
While the overall performance was subdued, the compensation amount and timing of payment of the compensatory relief related to Mundra power plant would be a key trigger in the near-term. It would remain an overhang on the stock in near-term.Alok Deora, Associate Vice President - Research, IIFL Private Wealth
Tata Power also disclosed that it had paid its share of Rs 790 crore to Tata Sons Ltd., the group holding company, in connection with NTT-Docomo Inc. exercising its option to exit from its investment in Tata Teleservices Ltd.
Shares ended marginally lower by 0.3 percent at Rs 81.30 on the Bombay Stock Exchange on Friday. The stock had risen nearly 7 percent so far this year as of Thursday’s close.18.65