InvestorQ : What is your quick view on the quarterly numbers of Tata Power for September 2022 quarter?
sara Kunju made post

What is your quick view on the quarterly numbers of Tata Power for September 2022 quarter?

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Mary Joseph answered.
1 month ago
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It was a kind of stellar quarter for Tata Power, if you go by the profit growth on yoy basis. Let me start with the top line story first. Tata Power reported 41% growth in sales at Rs14,031 crore on consolidated basis for Q2FY23. Revenues from the power generation vertical more than doubled to Rs4,834 crore on the back of higher capacity charges. Even the recently focussed renewables vertical saw revenues grow 7.3% at Rs1,604 crore. The big boost came from the transmission and distribution business with revenues growing 33% at Rs9,020 crore on a yoy basis. Current ratio improved from 0.59 times to 0.69 times yoy.

Tata Power

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 14,030.72

₹ 9,810.22

43.02%

₹ 14,495.48

-3.21%

Net Profit (Rs cr)

₹ 819.09

₹ 421.51

94.32%

₹ 794.60

3.08%

Diluted EPS (Rs)

₹ 2.57

₹ 1.32

₹ 2.48

Net Margins

5.84%

4.30%

5.48%

The real story was in the profit growth for the quarter. In fact, PAT for September 2022 quarter surged by 91.3% yoy at Rs819.1 crore. The big profitability boost came from the operating profits from generation which grew by 295% at Rs1,423. EBIT from transmission and distribution increased 15.5% at Rs515 crore but renewables saw slightly lower EBIT in the quarter as costs got front-ended. On yoy basis, the operating margins (OPM) improved by 300 bps to 16%. Lower debt and enhanced profits catalysed an improvement in interest coverage ratio (ICR) and the debt service coverage ratio (DSCR) yoy. Net margins at 5.84% in Q2FY23 was much better than 4.30% in Q1FY22 and compared to 5.48% in Q1FY23.

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