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: Strong operational performance - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jul 25, 2002

    Tata Power: Strong operational performance

    Tata Power has recorded a 3% dip in 1QFY03 net profit despite reporting a healthy 12% growth in topline. This was largely as a result of the extraordinary income which Tata Power had earned in June quarter last year. The company had earned profit from sale of its shares in Tata BP Lubricants Limited and had also sold US 64 units, which meant an extraordinary income of Rs 222 m in 1QFY02. Excluding this, net profit is up 30% YoY.

    (Rs m) 1QFY02 1QFY03 Change
    Sales 9,328 10,404 11.5%
    Other Income 306 297 -2.9%
    Expenditure 7,237 7,923 9.5%
    Operating Profit (EBDIT) 2,091 2,481 18.7%
    Operating Profit Margin (%) 22.4% 23.8%  
    Interest 602 718 19.2%
    Depreciation 701 824 17.5%
    Profit before Tax 1,094 1,237 13.1%
    Extraordinary income 222 0 -
    Tax 450 400 -11.1%
    Profit after Tax/(Loss) 866 837 -3.3%
    Net profit margin (%) 9.3% 8.0%  
    Diluted no. of Shares (eoy) (m) 197.9 197.9  
    Diluted Earnings per share* 17.5 16.9  
    *(annualised)      
    Current P/e ratio   6.4  

    On an operational level, Tata Power's performance has been pretty strong. The company has managed to keep its costs under control, thereby expanding operating margins to nearly 24%. The commisioning of the 120 MW capacity at Jojobera (second phase ) in December 2001 is largely responsible for this surge in topline. Another 37.5 MW plant at Wadi was scheduled to come up by June 2002. Considering the fixed return on capital on which the power business in India operates, this should add to its bottomline progressively.

    The commisioning of the 120 MW capacity at Jojobera (second phase ) in December 2001 is largely responsible for this surge in topline. Another 37.5 MW plant at Wadi was scheduled to come up by June 2002. Considering the fixed return on capital on which the power business in India operates, this should add to its bottomline progressively.

    Cost break-up
    (Rs m) 1QFY02 1QFY03 Change
    Cost of power purchased 1,000 997 -0.4%
    Cost of fuel 4,609 5,256 14.0%
    Staff cost 344 351 1.9%
    Other expenses 1,283 1,319 2.8%
    Total 7,237 7,923 9.5%

    Tata Power has recently invested Rs 1,803 m in North North West Delhi Distribution Company Ltd. for a 49% stake. With effect from July 01, 2002, the company has management control of the aforesaid distribution company.

    At the current market price of Rs 109 the stock is trading at 6.4x annualised 1QFY03 earnings. The stock has been depressed owing to concerns regarding the company's investments in distribution circle of Delhi, where returns are expected to come in the long term. Even rival BSES's experience in Orrisa has not been good. Also, there are concerns over the company's increasing exposure to the Tata Group's telecom ventures (Tata Teleservices and VSNL).

     

     

    Equitymaster requests your view! Post a comment on "Tata Power: Strong operational performance ". 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

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    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.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    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 22, 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 - NAVA BHARAT VENTURES COMPARISON

    Compare Company With Charts

    COMPARE TATA POWER WITH

    MARKET STATS