Tata Power’s earnings from hereon, said Kotak Institutional Equities, are premised on stability in the prices of imported coal and their contribution to earnings, growth from the renewable segment.
Antique Stock Broking expects net profit for Tata Power to rise 14.4 per cent YoY to Rs 937 crore while it forecast sales at Rs 15,616 crore. Mundra plant continues to be an issue but the rest of the businesses stays stable, it said.
The company has reported an EBITDA of Rs 3,090 crore in the July-September period, up 76% YoY from Rs 1,759 crore a year ago. Meanwhile, margins improved to 19.6% in the reporting period.
During the quarter, Tata Power said a significant 84 per cent contribution in the company's PAT came from the core businesses, while the contributions from overseas joint ventures, including coal mining operations, continued to decline.