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Tata Power: Higher tax & finance costs hit bottomline - Views on News from Equitymaster
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  • Oct 6, 2015 - Tata Power: Higher tax & finance costs hit bottomline

Tata Power: Higher tax & finance costs hit bottomline
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. Here is our analysis of the results.

Performance summary

  • Standalone revenues decline by 3% YoY during 1QFY16. Sales volumes fall by 7.3% YoY.
  • Operating profits grow by 44.3% YoY during the quarter led by strong cost cutting measures.
  • Net profit decline by 5.3% on a YoY basis on account of higher finance costs and taxation.

Standalone financial performance

(Rs m) 1QFY15 1QFY16 Change
Generation 3,301 3,126 -5.3%
Sales 3,778 3,504 -7.3%
Net revenue 22,618 21,946 -3.0%
Expenditure 17,939 15,192 -15.3%
Operating profit (EBDITA) 4,680 6,754 44.3%
EBDITA margin (%) 20.7% 30.8%  
Other income 2,645 2,251 -14.9%
Depreciation 1,416 1,641 15.9%
Interest 2,521 3,420 35.7%
Gain/ (Loss) on exchange (432) (133)  
Profit before tax & rate regulated activity 2,956 3,811 28.9%
Regulated inccome/(expense) 805 166 -79.4%
Tax 1,201 1,552 29.3%
Effective tax rate 32% 39%  
Profit after tax/(loss) 2,560 2,424 -5.3%
Net profit margin (%) 11.3% 11.05%  
No. of shares (m)   2,704.8  
Diluted earnings per share (Rs)*   3.2  
Price to earnings ratio (x)   20  
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