Tata Power Q4 results preview: Kotak Institutional Equities sees profit at Rs 754 crore, up 50 per cent. It sees sales at Rs 13,656 crore and margin at 14.5 per cent. Tata Power is scheduled to report its March quarter results today. Brokerages such as Kotak Institutional Equities said earnings from the renewable portfolio will benefit from a higher capacity base and a strong execution at Tata Power Solar. But they expect higher losses from Mundra, as the plant was barely operational during 4QFY23. Coal mining profits may moderate sequentially due to softness in realisations, analysts said.
"Tata Power is expected to post strong earnings growth on a YoY basis due to low base of last year, but sequentially PAT would decline due to losses at Mundra as the plant was operational for a few days in Q4FY2023 and moderation in coal realisation," Sharekhan said.
This brokerage sees profit climbing 51.1 per cent YoY to Rs 760 crore from Rs 503 crore in the year-ago quarter. Sales are seen rising 13.1 per cent to Rs 13,556 crore from Rs 11,960 crore in the same quarter last year. Operating profit margin, said Sharekhan may fall to 14.4 per cent from 15.6 per cent.
Kotak Institutional Equities sees profit at Rs 754 crore, up 50 per cent. It sees sales at Rs 13,656 crore and margin at 14.5 per cent.
Tata Power may report healthy growth on better contribution from the renewable segment, said Elara Securities. It sees Tata Power reporting profit at Rs 943.30 crore for March quarter. This brokerage sees sales at Rs 12,923.90 crore.
JM Financial said Tata Power is expected to witness a decline in profitability on account of the Mundra power plant being barely operational during the quarter as well as softening of Indonesian coal prices, leading to lower realisation from coal mines.
It sees profit for Tata Power profit at Rs 763.20 crore. Sales are seen at Rs 12,512 crore.
"Profit from coal mines to moderate sequentially due to softness in realisations. Loss at Mundra plant to get slightly offset from the earnings in renewable portfolio EPS on the back of higher capacity and strong execution," JM Financial said.