Tata Power Company reported a 48.5% increase in profit for the quarter ending March 31, 2023. This was largely due to higher income from other sources and a lower base than the previous period. However, the operating margin remained low.
The consolidated revenue from operations was Rs 12,454 crores for the third quarter, a growth of 4.1% over last year’s corresponding period. However, the segments generation and renewables saw a decline. Tata Power’s filing to the exchanges stated that topline growth was supported by a 16% YoY increase in transmission and distribution.
The Tata Group’s power generation and distribution business reported a 3.2% increase in EBITDA year-on-year at Rs 1,927.7 Crores in the March quarter FY23, but margins fell by 10 bps, to 15.5% YoY.
The numbers, except for the topline, exceeded analysts’ expectations. According to average estimate of brokerages, profit was expected at Rs. 670 crore for revenue of Rs. 12,950 crore. EBITDA, on the other hand, was estimated at Rs. 1,813 crore and a margin of 14%.
The Stocks of Tata Power have given a return of about 5% in the past month. It was trading at 203.85 a piece on Thursday, 04-May-2023. Although it is 16% down from its 52-week high which makes it an attractive ‘Buy’
The board of Tata Power has recommended that a Rs.2/- dividend be paid to each share in the fiscal year 2022-2023