X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Tata Power: Uninspiring 3QFY01 - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jan 30, 2001

    Tata Power: Uninspiring 3QFY01

    Tata Power has declared an 18% jump in its 3QFY01 turnover over the corresponding period in the previous year. The company however, managed to improve its net profit by a miniscule 1%, that too as a result of an 80% decline in tax provisioning.

    (Rs m) 3QFY00 3QFY01 Change 9m FY00 9m FY01 Change
    Sales 7,479 8,846 18.3% 20,608 26,835 30.2%
    Other Income 809 381 -52.9% 2,518 2,032 -19.3%
    Total expenditure 5,670 6,988 23.3% 15,593 21,249 36.3%
    Operating Profit (EBDIT) 1,809 1,858 2.7% 5,015 5,586 11.4%
    Operating Profit Margin (%) 24.2% 21.0%   24.3% 20.8%  
    Interest 482 585 21.3% 1,469 1,545 5.2%
    Depreciation 505 512 1.2% 1,516 1,535 1.3%
    Profit before Tax 1,630 1,142 -29.9% 4,547 4,539 -0.2%
    Tax 625 127 -79.7% 1,472 1,313 -10.8%
    Profit after Tax/(Loss) 1,005 1,016 1.0% 3,076 3,225 4.9%
    Net profit margin (%) 13.4% 11.5%   14.9% 12.0%  
    No. of Shares (eoy) (m) 115.6 197.9   115.6 197.9  
    Diluted no. of shares outstanding (m) 197.9 197.9   197.9 197.9  
    Earnings per share*       20.7 21.7  
    *(annualised)            
    Current P/e ratio         5.2  

    The erstwhile 3 Tata Electric Companies, i.e. Andhra Valley, Tata Hydro-Electric and Tata Power, were recently merged into one single entity under Tata Power. In effect, Tata Power is the new name of the merged Tata Electric Companies. For making the results comparable, we have taken the previous year figures of the erswhile 3 Tata Electric Companies and merged them.

    Tata Power's bottomline was also hit because of a 53% decline in its other income coupled with 21% jump in its interest costs in 3QFY01.

    On a nine month consolidated basis, Tata Power's results look much better. Turnover has surged 30% YoY. But a 36% jump in expenditure has resulted in the company declaring only a 5% growth in its bottomline. On a nine month basis, the tax provisioning is down by a marginal 11% (unlike its 3QFY01). Therefore, the performance on a nine month basis is much more creditable.

    The stock trades at a P/e multiple of 5.2 times its nine month FY01 annualised earnings. Though the results of Tata Power are not very inspiring, however, given that the P/e multiple for the stock is on the lower side, the stock is likely to gain strength. Also, the economies of the merger are yet to show effect. Once they do, the expenditure is likely to get pruned.

     

     

    Equitymaster requests your view! Post a comment on "Tata Power: Uninspiring 3QFY01". Click here!

      
     

    More Views on News

    NTPC: Higher Tax Provision Impacts Profits (Quarterly Results Update - Detailed)

    Mar 30, 2017

    NTPC declared results for the quarter ended December 2016. The company reported revenue growth of 10.9% while profits declined by 7.5% YoY.

    Tata Power: Higher regulatory & taxation costs hit bottomline (Quarterly Results Update - Detailed)

    Dec 28, 2015

    Tata Power declared its results for the quarter ended September 2015. The company's standalone revenues rose 16.3% YoY. However, net profits declined 9% YoY.

    Tata Power: Higher tax & finance costs hit bottomline (Quarterly Results Update - Detailed)

    Oct 6, 2015

    Tata Power declared its results for the quarter ended June 2015. The company's standalone revenues and profits fell by 3% and 5.3% YoY during the quarter.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    TATA POWER SHARE PRICE


    Aug 16, 2017 (Close)

    TRACK TATA POWER

    • Track your investment in TATA POWER with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    TATA POWER - ENEL COMPARISON

    Compare Company With Charts

    COMPARE TATA POWER WITH

    MARKET STATS