Tata Power has declared a 5% net profit growth YoY in 1QFY02. A 37% rise in depreciation provisioning has led to this rather sluggish bottomline growth. The company's topline grew by 6% during the quarter. The company sold 2,713 MUs (million units) of power this quarter, which is up around 10% YoY.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Diluted no. of Shares (eoy) (m)
Diluted Earnings per share*
Current P/e ratio
The higher tax provisioning also includes Rs 135 m as estimated provisions for deferred tax in accordance with the accounting standard 22. Tata Power earned higher other income on account of profit from sale of its shares in Tata BP Lubricants Limited. The other income also includes sale of US 64 units made by the company. However, neither the number of units sold, nor the price at which these units were sold has been specified in the company's press release.
Cost of power purchased
Cost of fuel
The turnover growth of 6% in 1QFY02 is better than its 4QFY01 performance, which saw topline decline 6% YoY. This time the company's fuel costs have increased marginally, which has helped companies like BSES, which source electricity from Tata Power, heave a sigh of relief.
At the current price of Rs 132 Tata Power trades at P/e multiple of 7.5 times its annualised 1QFY02 earnings. The company's IPP (independent power producer) capacity would nearly double in the next couple of years. This should directly add to its bottomline. However, its telecom and broadband business continues to be a drain on resources and is likely to counter profit growth.
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