Tata Power Company has declared very encouraging results for the September quarter. The company declared an 18% jump in topline during the quarter and an even more impressive 49% growth in the bottomline (excluding other income).
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 commisioning of new capacities has started to show affect on the company's topline as well as the bottomline. The company commissioned a 120 MW plant expansion at Jojobera in February 2001 and an 81.3 MW plant in March 2001. In 2QFY02, Tata Power generated 19% more electricity and sold 20% more electricity as compared to 2QFY01.
Sale of electricity
This as well the profits from Tata Petrodyne's oil exploration business aided the bottomline growth. However, it is not clear from the company's press release whether the numbers include the transmission business of Tata International, which the company acquired during the quarter.
Cost of power purchased
Cost of fuel
On a half yearly basis, Tata Power's turnover was up by 12% and the bottomline recorded a 21% growth (excl. extraordinary income). The extraordinary income this year reflects the profit on sale of investments like sale of US 64 units as well as sale of its stake in Tata BP Lubricants.
Tata Power is slated to commission another 120 MW capacity at Jojobera by December 2001 and a 37.5 MW plant at Wadi by June 2002. Its captive power generation (CPP) capacity is slated to zoom from 800 MU (million units) in FY01 to around 2,000 MU by FY03. Considering the fixed return on capital on which the power business in India operates, this should add to its bottomline progressively.
At the current price of Rs 97 the stock trades at a P/E of 5.8x annualised 1HFY02 earnings.
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