Tata Power - March 2013 Results Preview - Motilal Oswal

- We expect Tata Power (TPWR) to report standalone PAT of INR1.4b (down 38% YoY) and consolidated PAT of INR2.3b (down 35% YoY).

- Generation from TPWR's 2,021MW (Mumbai region) capacity in Jan-Feb 2013 stood at 1.4BUs, down 15% YoY. Mundra UMPP generation for the period stood at 3.7BUs and PLF stood at 91% and Maithon generated 1BU at a PLF of 68.6%.

- Company has filed a petition with CERC seeking a tariff hike of around paise67/unit for its Mundra project. Hearing for the same has been completed and result is expected soon.

- Global coal prices remained flat sequentially ~USD85.5 and currency too was muted at INR54.25/USD in 4QFY13, compared to INR54.4/USD in 3QFY13. Hence, contribution from KPC/Arutmin mines may remain muted.

- We expect TPWR to report consolidated PAT of INR10.1b in FY13E (down 42% YoY) and INR9.4b in FY14E (down 7% YoY). Stock trades at a reported P/E of 20.1x FY15E.

Source : Equity Bulls

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