Q2FY15 Result Review - Tata Power Company Ltd :: HDFC Sec, link

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--> Disappointing standalone sales on lower generation
In Q2FY15, TPC reported Net Sales of Rs 1896.8 cr, down 8.6% y-o-y and 12.6% q-o-q. The Gross generation for the quarter was at 3123 MUs compared to 3404 MUs y-o-y down 8.3%.
Generation in Mumbai Operations (MUs) was down by 16% from 1813 MUs to 2147 MUs y-o-y because of Trombay Unit-8 which is under restoration (since Jan 2014). The Unit 8 is likely
to continue its operations shortly. Generation outside Mumbai Operations was up 4% from 1257 MUs to 1309 MUs due to higher generation in Jojobera. Sales in Mumbai operations is
down by 12% to 2381 MUs from 2711 MUs Y-o-Y while the sales outside Mumbai was up by 3% to 1242 MUs from 1201 MUs.
Operating margins have gone down from 29.0% in Q2FY14 to 28.3% in Q2FY15. In Q1FY15, the same was 25.3%. Staff costs have gone up sharply from 5.4% in Q2FY14 and 7.2% in
Q1FY15 to 8.9% in Q2FY15 as a percentage cost to sales, due to annual increment & reversal of retrials provisions in PY. Cost of components has gone up by 64% y-o-y on higher project
spend in SED. Cost of fuel (as a percentage of sales) has come down from 46.1% in Q2FY14 to 36.9%in Q2FY15 on forced outage of Unit 8 as well as previous year included interest on
entry tax on fuel. Other expenditure also has gone up by 55% Y-o-Y (also as a percentage to sales it has increased to 18.2% in Q2FY15 from 13.0% in Q2FY14) due to higher R&M expense
& property tax arrears in generation.

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