Tata Power has reported a net profit of Rs 490 m for the 3QFY2000, which is an increase of 28.4% over the corresponding period of the previous year. Its net sales from power supply went up to Rs 3,739 m for the 3QFY2000 a growth of 32% over Rs 2,893 m reported in 3QFY99.
Tata Power an electricity supply company, is a part entity of the Tata Electric Companies. It reported a turnover of Rs 11,399 m for FY99.
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Its other income was up 28% YoY during the quarter and non-recurring other income (profit on buy-back of bonds and profit on sale/redemption of investments) jumped from Rs 0.3 m in the 3QFY99 to Rs 34.7 m in the 3QFY2000.
The total expenditure rose sharply by 53.6% from Rs 1,846 m in the 3QFY99 to Rs 2,835 m in the 3QFY2000. This has resulted in a drop in operating margin from 35% to 24%. On the other hand due to lower interest costs and lower tax payments its net margin have fallen from 12.2% in the 3QFY99 to 11.9% in the 3QFY2000.
Looking at the near term profit growth many analysts have rated Tata Power as a "SELL". However due to attractive valuations in the long term many analysts feel it has good potential.
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: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407