Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Tata power Q4FY21 Results Review - Inline result; alternative to InvIT on cards - HDFC Securities

Posted On: 2021-05-16 06:45:54 (Time Zone: UTC)


Tata Power reported consolidated revenue at INR 101.3bn (+53%/+33% YoY/QoQ) in Q4FY21. The numbers are not comparable to our estimates due to the acquisition of Odisha distribution circle. The growth was also aided by strong execution of solar EPC projects. However, EBITDA declined 8.5% yoy to INR14.5bn due to increased losses in Mundra project from the rise in coal prices. The deleveraging exercise helped the company in lowering its interest expenses, which along with a deferred tax credit led to a 38.6% yoy rise in its APAT to INR3.9bn. Solar EPC order backlog stood strong at INR 87.4bn. While InvIT transaction missed the FY21 end target, the management has indicated a much better alternative for monetisation of its renewable assets which could fetch a higher valuation. We have revised our earnings estimates factoring the inclusion of Odisha discoms and exclusion of renewable business in our estimates. We reiterate our buy on Tata Power factoring in the growth in EPC business, higher regulated capex, debt reduction and merger benefits. We assign a SoTP TP of INR127 (+ 17% from the CMP).

Earnings boosted by deleveraging exercise: Consolidated revenues grew by (+53%/+33% YoY/QoQ) to INR101.3bn, led by a strong performance in Solar EPC (+380% yoy) and inclusion of Odisha business (INR18.8bn in Q4FY21). EBITDA, however, declined 8.5% yoy to INR14.5bn due to increased under recovery in Mundra project from the rise in coal prices (INR0.74/unit in Q4FY21 vs INR0.45/unit yoy). APAT though rose 38.6% yoy to INR3.9bn, driven by high contribution from the solar EPC business, reduction in interest expenses (-18.4% yoy to INR8.9bn) and deferred tax credit of INR3.5bn in Q4FY21. Standalone revenue declined 11.6% yoy to INR15.6bn, dragged by lower demand while its PAT came in at INR1.6bn vs a loss of INR 3.2bn due to higher dividend from JV companies.

Net debt reduced to INR359.5bn in FY21: Net debt for Tata Power fell to INR359.5bn as of Mar'21 from INR435.8bn yoy. Accordingly, its net D/E declined to 1.4x in FY21 vs 2.0x yoy while Net debt/EBITDA declined to 4.1x in FY21 vs 4.7x yoy. While the company missed its targeted net debt level of INR250bn by FY21 due to the non execution of the proposed InvIT transaction, the management has indicated a much better alternative for monetisation of its renewable assets which could fetch a higher valuation.

Maintain a Buy: We reiterate our BUY rating on Tata Power, factoring in the growth in EPC business, higher regulated capex, debt reduction and merger benefits. However, we have revised our earnings estimates factoring in the inclusion of Odisha discoms and exclusion of renewable business in our estimates. We assign a SoTP TP of INR127 (+ 17% upside from the CMP).

Shares of TATA POWER CO.LTD. was last trading in BSE at Rs.101.45 as compared to the previous close of Rs. 106.55. The total number of shares traded during the day was 5209943 in over 18173 trades.

The stock hit an intraday high of Rs. 107.95 and intraday low of 101.05. The net turnover during the day was Rs. 535266003.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.


Other Headlines:

CESC Q4FY21 Results Review Report - Loss decline, strong CF make valuation attractive - HDFC Securities

White Goods & Durables - Analysis of pressure cooker market: TTK Prestige is key beneficiary - ICICI Securities

CESC - Good earnings in a challenging environment - ICICI Securities

Somany Ceramics - Walking the talk - ICICI Securities

DB Corp - Rise in newsprint price adds to risk - ICICI Securities

CEAT - Market share ambitions remain strong - ICICI Securities

Consumer Staples & Discretionary - Worm's world view #32: Conversations with paint dealers regarding price hikes - ICICI Securities

Oil & Gas - Oil, gas & spot LNG surge to bring gains for GAIL & OIL - ICICI Securities

Asset Management Companies - Positive trends to support earnings - ICICI Securities

Q4FY21 Result Update - Lemon Tree Hotels - ICICI Direct

Q4FY21 Company Update - Globus Spirits - ICICI Direct

Q4FY21 Result Update - DB Corp - ICICI Direct

Q4FY21 Result Update - Somany Ceramics - ICICI Direct

KEC International: Company Update - Building on diversification - HDFC Securities

LIC Housing Finance - Q4 FY21 Result Update - YES Securities

Entertainment Network Ltd - Beating on solutions business - ICICI Securities

Asahi India Glass - Operating leverage, product mix aid margins - ICICI Securities

Whirlpool of India - Market leading revenue growth - ICICI Securities

Lemon Tree Hotels - Wait for recovery gets longer - ICICI Securities

LIC Housing Finance - Stupendous growth momentum; needs to shore up provisioning and capital buffer - ICICI Securities

Quant Pick - Bank of Baroda - ICICI Direct

Company Update - Amara Raja Batteries - Investor Event Outcome - ICICI Direct

Q4FY21 Result Update - Bhel - ICICI Direct

Q4FY21 Company Update - NRB Bearings - ICICI Direct

CESC - Q4FY21 First Cut - ICICI Direct

Q4FY21 Result Update - Entertainment Network India - ICICI Direct

LIC Housing Finance Results Review Report - Balance sheet beefs up; P&L to stay soft - HDFC Securities

Jubilant FoodWorks 4QFY21 Results Review Report - Missing excitement; recovery priced in - HDFC Securities

BFSI Sector Update - MFI Consultation Paper Takeaways - Incrementally positive for NBFC-MFIs - HDFC Securities

Q4FY21 Result Update - JK Cement - ICICI Direct

Q4FY21 Result Update - Minda Industries - ICICI Direct

Stock Tales - Indo Count Industries - ICICI Direct

IPO Review - Krishna Institute of Medical Sciences Ltd - ICICI Direct

Q4FY21 Company Update - Greenply Industries - ICICI Direct

IPO Review - Dodla Dairy Ltd - ICICI Direct

Lemon Tree Hotels - Q4FY21 First Cut - ICICI Direct

Jubilant Foodworks - Q4FY21 investor call takeaways - YES Securities

Greenply Industries Ltd - Q4 FY21 Result Update - YES Securities

Whirlpool of India Ltd - Q4 FY21 Result Update - YES Securities

New India Assurance Report - CoRs disappoint yet again - HDFC Securities

Maintain BUY on Kajaria Ceramics - Performance shines through; outlook bright - HDFC Securities

Retain ADD on Deccan Cement - Volume strong; high other expense dents margin - HDFC Securities

Reiterate ADD on NHPC - Lower generation impacts earnings - HDFC Securities

Maintain BUY on JK Cement - Robust volume and utilisation - HDFC Securities

Maintain BUY on DLF - Gaining traction - HDFC Securities

Maintain BUY on Capacite Infraprojects - Marginal miss - HDFC Securities

DLF Ltd - Q4 FY21 Result Update - YES Securities

Greenply Industries Ltd - Q4FY21 first cut - YES Securities

Coal India - Coal makes a comeback - ICICI Securities

Kajaria Ceramics - Q4FY21 beat largely priced in - ICICI Securities


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020