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4Q numbers were below expectations due to lower revenues from trading operations, lower
merchant realization and lower coal volumes. New projects coming on line, are on track and a
ramp-up in coal business should help growth over the next few years. We have a Hold rating on
the stock.
Tata Power reported consolidated revenues of Rs50.2bn flat for 4Q11, below our estimates
by 13% due to lower revenues from trading operations, lower merchant realization and lower
coal volumes despite higher . Reported profit for the quarter came in at Rs6.25bn, while
adjusted PAT came in Rs5.9bn up 4%yo and 11% below estimates. The adjustment mainly
pertains to lower tax in the standalone entity on account of MAT credit.
In Q4FY11, revenues from coal business were Rs17.1bn (up 1.8% yoy, up 2.5% qoq). PBIT
was Rs4.5bn (down -0.6% yoy, up 5% qoq) while PBIT margins were mostly flat at 26.5%.
Average realization for the coal business was $76 per tonne for FY11 (~$60 in FY10 per
tonne) and $87.4 per tonne in Q4FY11 up almost $25 compared to that in Q4FY10. Coal
production in Q4FY11 was ~13MT compared to ~15MT in Q4FY10. Coal sales volume in
Q4FY11 was ~14MT compared to ~16MT in Q4FY10
In terms its fixed price contract with Bumi mines, the company's offtake agreement breaches
the minimum sale price fixed by the Indonesian government. Tata Power has made a
representation to the government and is awaiting their confirmation. The company pegs the
maximum impact of $35 per ton on 2.6mn tons of coal supply.
The company has commissioned IEL unit 5 during FY11 and we expect it to be fully
operational in the current quarter.
The Maithon plant is 95% completed and we expect the first unit to be commissioned by
Q1FY12. Mundra is progressing as per schedule and the first unit is 80% complete. The
company has said that they expect the first unit to be commissioned by September 2011,
though we believe that it could be December 2011 by the time its completed.
We have a Hold rating on the company. The stock is currently trading at 1.9x FY12F book
value.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
4Q numbers were below expectations due to lower revenues from trading operations, lower
merchant realization and lower coal volumes. New projects coming on line, are on track and a
ramp-up in coal business should help growth over the next few years. We have a Hold rating on
the stock.
Tata Power reported consolidated revenues of Rs50.2bn flat for 4Q11, below our estimates
by 13% due to lower revenues from trading operations, lower merchant realization and lower
coal volumes despite higher . Reported profit for the quarter came in at Rs6.25bn, while
adjusted PAT came in Rs5.9bn up 4%yo and 11% below estimates. The adjustment mainly
pertains to lower tax in the standalone entity on account of MAT credit.
In Q4FY11, revenues from coal business were Rs17.1bn (up 1.8% yoy, up 2.5% qoq). PBIT
was Rs4.5bn (down -0.6% yoy, up 5% qoq) while PBIT margins were mostly flat at 26.5%.
Average realization for the coal business was $76 per tonne for FY11 (~$60 in FY10 per
tonne) and $87.4 per tonne in Q4FY11 up almost $25 compared to that in Q4FY10. Coal
production in Q4FY11 was ~13MT compared to ~15MT in Q4FY10. Coal sales volume in
Q4FY11 was ~14MT compared to ~16MT in Q4FY10
In terms its fixed price contract with Bumi mines, the company's offtake agreement breaches
the minimum sale price fixed by the Indonesian government. Tata Power has made a
representation to the government and is awaiting their confirmation. The company pegs the
maximum impact of $35 per ton on 2.6mn tons of coal supply.
The company has commissioned IEL unit 5 during FY11 and we expect it to be fully
operational in the current quarter.
The Maithon plant is 95% completed and we expect the first unit to be commissioned by
Q1FY12. Mundra is progressing as per schedule and the first unit is 80% complete. The
company has said that they expect the first unit to be commissioned by September 2011,
though we believe that it could be December 2011 by the time its completed.
We have a Hold rating on the company. The stock is currently trading at 1.9x FY12F book
value.
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