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Big initiatives in renewable and clean energy to start reflecting in the performance over the next two years
Net Sales are expected to increase by 37 percent Y-o-Y (up 6.6 percent Q-o-Q) to Rs. 1,495.1 crore, according to HDFC Securities.
For the quarter, growth in hydropower generation stood at 14 percent while that in thermal and renewable energy stood at 2.5 percent and 8.5 percent, respectively, on an annualised basis.
Higher valuations could cap stock upside in the near term
Growth from the generation business of Tata Power is set to be much higher
Recent run-up in share prices of Tata Power leaves little scope for appreciation in the near term
Once the inflation cycle sets in, the cost of power production through fossil fuels will rise with every passing year, with the energy switchover to renewables becoming a viable and attractive option.
Net Sales are expected to increase by 7.3 percent Y-o-Y (up 13.4 percent Q-o-Q) to Rs. 2,062 crore, according to Kotak.
Net Sales are expected to increase by 6.1 percent Y-o-Y (down 7.7 percent Q-o-Q) to Rs. 1,955.9 crore, according to Kotak.
Tata Power's Q2 profit grew 85.1 per cent on year to Rs 393.4 crore due to low base in year-ago period.
Net Sales are expected to increase by 2.1 percent Y-o-Y (up 6.5 percent Q-o-Q) to Rs. 1,955.5 crore, according to Kotak.
Analysts expect generation volumes to remain sluggish and realisations to remain flattish. They further expect coal business and renewable business to maintain strong momentum.
The proceeds from the sale of non-core assets will be used to pare debt, said Anil Sardana, MD & CEO, Tata Power.
The company’s revenue could be up by 3 percent at Rs 7,409 crore against Rs 7,209 crore posted during the same period last year.
Net Sales are expected to increase by 1.9 percent Y-o-Y (up 5.4 percent Q-o-Q) to Rs. 7345.1 crore, according to Edelweiss.
GST for solar renewable at the rate of 18 percent will not impact the company's tariffs because most of their solar projects got concluded before March 31, said Anil Sardana, MD, Tata Power.
Growth in bottomline is expected to be driven by higher contribution of profit from Indo coal mines and lower taxes QoQ. Reduction in depreciation and finance cost may also aid profit.
Tata Power, one of the largest power generation companies in the private sector, is expected to report a 39 percent growth in profit at Rs 344 crore, according to average of estimates of analysts polled by CNBC-TV18.
Higher profitability at Maithon, higher EBIT spread for Coal and lower losses at Mundra may drive bottomline.
Analysts expect power generation volumes at 10,337 million units against 11,170 million units on yearly basis. They see flat volumes at Mundra that may be offset by higher volumes at Mumbai and Delhi circles.
Sales are expected to decrease by 9.2 percent Q-o-Q (down 2.6 percent Y-o-Y) to Rs 8707.4 crore, according to ICICI Securities.
On improvement in power demand, Anil Sardana, MD & CEO of Tata Power says, there is traction as India has lot of pent-up demand and schemes like UDAY will boost consumption.
Profit after tax for Mundra came in at Rs 9 crore against Nomura's estimate of a Rs 41 crore loss. Sales volume in its coal business came in at 21.4 million tonnes. It was 3 percent above Nomura forecast. The brokerage firm maintains its buy call on the stock.
Operating profit (earnings before interest, tax, depreciation and amortisation) is seen rising 25 percent to Rs 2,046 crore and margin may remain flat at 20.6 percent compared to corresponding period of last fiscal.
The company is getting closer to the Arutmin mine stake sale and is likely to be completed in six months, said Anil Sardana, CEO & MD Of Tata Power.