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Tata Power Co
Weak F3Q11; Lower Other Income
Results fell short of our estimates: Tata Power
reported F3Q11 adjusted standalone revenue of Rs16.4
bn (up 5% YoY), EBITDA of Rs3.2 bn (down 12% YoY)
and adjusted profits of Rs1.4 bn (up 1% YoY). We had
estimated standalone revenues of Rs17.1 bn, EBITDA
of Rs 3.67 bn and profits of Rs1.9 bn. The company
reported consolidated revenue of Rs44.4 bn (down 2%
YoY), EBITDA of Rs9.8 bn (up 7% YoY) and adjusted
profits of Rs3.4 bn (down 37% YoY).
Key developments: The company has completed 71%
of work on the Mundra UMPP with ordering for major
packages now complete. On the Maithon project, 92% of
the work is completed, and the first unit is expected to be
synchronized in F4Q11 and the second unit four months
later. Progress on the company’s other plants
During F3Q11, the company sold 353 MUs of merchant
power at an average realization of Rs3.7/unit. During the
quarter, the company had lower gross generation,
primarily due to lower generation from Unit 6 in Trombay,
since cheaper power was available for purchase
elsewhere. The coal companies sold 16 mt of coal at a
realized price of US$ 73/t; however, cash cost was
higher at US$ 37/t due to heavy rainfall. The regulated
equity in the Mumbai License Area is Rs21.6 bn and in
NDPL is Rs8 bn.
Investment thesis: We believe the company is meeting
its execution timeline for the Mundra and Maithon power
projects, which sets it apart from its peers. However, the
stock is trading at 2x P/B and 9.4x EV/EBITDA on our
F2012 consolidated estimates, which we believe leaves
limited upside. Hence we maintain our Equal-weight
rating on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Tata Power Co
Weak F3Q11; Lower Other Income
Results fell short of our estimates: Tata Power
reported F3Q11 adjusted standalone revenue of Rs16.4
bn (up 5% YoY), EBITDA of Rs3.2 bn (down 12% YoY)
and adjusted profits of Rs1.4 bn (up 1% YoY). We had
estimated standalone revenues of Rs17.1 bn, EBITDA
of Rs 3.67 bn and profits of Rs1.9 bn. The company
reported consolidated revenue of Rs44.4 bn (down 2%
YoY), EBITDA of Rs9.8 bn (up 7% YoY) and adjusted
profits of Rs3.4 bn (down 37% YoY).
Key developments: The company has completed 71%
of work on the Mundra UMPP with ordering for major
packages now complete. On the Maithon project, 92% of
the work is completed, and the first unit is expected to be
synchronized in F4Q11 and the second unit four months
later. Progress on the company’s other plants
During F3Q11, the company sold 353 MUs of merchant
power at an average realization of Rs3.7/unit. During the
quarter, the company had lower gross generation,
primarily due to lower generation from Unit 6 in Trombay,
since cheaper power was available for purchase
elsewhere. The coal companies sold 16 mt of coal at a
realized price of US$ 73/t; however, cash cost was
higher at US$ 37/t due to heavy rainfall. The regulated
equity in the Mumbai License Area is Rs21.6 bn and in
NDPL is Rs8 bn.
Investment thesis: We believe the company is meeting
its execution timeline for the Mundra and Maithon power
projects, which sets it apart from its peers. However, the
stock is trading at 2x P/B and 9.4x EV/EBITDA on our
F2012 consolidated estimates, which we believe leaves
limited upside. Hence we maintain our Equal-weight
rating on the stock.
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