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Tata Power likely to clock 31% jump in quarterly profit boosted by higher demand | Earnings Preview

Tata Power likely to clock 31% jump in quarterly profit boosted by higher demand | Earnings Preview

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By CNBCTV18.com Oct 28, 2022 8:59:07 AM IST (Updated)

Analysts in a CNBC-TV18 poll expect the Tata group power generator, transmitter and distributor, Tata Power, to report quarterly revenue of Rs 12,600 crore, up 28.4 percent on a year-on-year basis. 

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Tata Power is all set to report its financial results for the July-September period on Friday, October 28.
Analysts in a CNBC-TV18 poll expect the Tata group power generator, transmitter and distributor to report a quarterly net profit of Rs 665 crore, which would mean a jump of 31.4 percent compared with the corresponding period a year ago.
They estimate its revenue at Rs 12,600 crore, up 28.4 percent compared with the year-ago period.
Tata Power's performance in the three-month period is likely to be driven by improved output from its plant in Mundra, Gujarat, up 52 percent on a year-on-year basis amid higher power demand across its distribution circles.
Although strong execution is expected across its engineering, procurement and construction (EPC) business, lower generation as well as margin in the unit may weigh on the company's overall performance.
The analysts peg the company's earnings before interest, taxes, depreciation and ammortisation (EBITDA) at Rs 17,30 crore, up 3.9 percent compared with the year-ago period. They estimate its margin — an important metric that gauges the degree to which a business makes money — at 13.8 percent for the July-September period, as against 16.9 percent for the year-ago period.
Tata Power is likely to see improved profitability from its Indonesian coal business, given a record rise in the price of the dry fuel.
Investors will look for any update on its renewable energy bids and under-construction projects.
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