Target: ₹256
CMP: ₹210.85
Tata Power’s consolidated revenue is up 4.13 per cent at ₹1,2453.8 crore in Q4-FY23 vs ₹11,960.0 crore in Q4-FY22 due to higher sales across distribution companies and capacity addition in renewables. Its consolidated EBITDA up 38 per cent at ₹3,101 crore vs ₹2,253 crore in Q4-FY22 due to lower under recovery in Mundra, capacity addition in renewables, and execution of Solar EPC projects. Consolidated reported PAT is up 48 per cent at ₹939 crore (₹632 crore), supported by strong performance across all businesses.
The rooftop business has seen very good traction in the quarter and 300 MW of capacity was installed in the last quarter.The rooftop business has a healthy order book of 468 MW worth ₹1,900 crore. Their solar rooftop business has expanded more than 1,600 MW.
In the green mobility space, the company recently signed up with the Coimbatore Municipal Corporation and also with GAIL.
Tata Power net debt has reduced further by ₹2,800 crore in the March quarter and currently the debt is ₹35,328 crore. This is because of very healthy operating performance, equity infusion by its strategic partner, and working capital release.
With rapidly growing generation capacity at its disposal, strengthened focus on EV and renewables businesses, we expect the company’s performance to improve from the current levels.