Tata Power
Coal: The management highlighted that Tata Power saw strong contribution from its coal companies owing to elevated coal prices, with Q3FY23 revenue, Ebitda and PAT of Rs 5200 crore (up 45 per cent YoY), Rs 1,100 crore (down 25 per cent YoY) and Rs 950 crore (up 59 per cent YoY), respectively. Consequently, the share of profit from associates increased to Rs 1,000 crore in Q3FY23 from Rs 660 crore in Q3FY22, but lower than Rs 1,200 crore in Q2FY23. However, prices of imported coal have dropped to $232 per tonne in Q3FY23 from $320 per tonne in Q2FY23.
Maithon: The management highlighted that Maithon reported revenues of Rs8.1 bn in 3QFY23. It stated that the increase of 21 per cent YoY was primarily due to the +16 per cent YoY rise in unit sales during the quarter, with 4 per cent growth in realizations. Margins improved to 25.5 per cent.
Tata Power Solar: Tata Power Solar’s revenues rose 26 per cent YoY to Rs 1,430 crore, but declined 8 per cent QoQ, with the Ebitda margin declining to 7 per cent (versus 10 per cent in 3QFY22 and 11 per cent in 2QFY23). Tata Power’s solar rooftop revenues were robust at Rs 530 crore (up 41 per cent YoY, down 7 per cent QoQ). It currently has a capacity of 1 GW (~4.5 GW total market size). Management stated that the company currently has an order book of Rs14 bn, and plans to increase revenues from its solar rooftop segment to Rs 10,000 crore (from the Rs 2500 crore annual run-rate now) by FY2027, as it reaches a capacity of 2.5-3.0 GW.
Renewables: Tata Power highlighted that PLFs for its solar plants were stable at 23 per cent, whereas PLFs for wind plants weakened. Management stated that the installed capacity increased marginally to 2.85 GW in Q3FY23, with solar capacity standing at 2.07 GW and wind capacity at 0.78 GW.
Mundra: The company stated that it is yet to reach any agreement with the states on the Mundra power plant, which is currently operating at very low capacity (10-15 per cent PLF, as of January 2023). However, it believes that the Section 11 order (from last year) could be implemented again, as the power demand increases in the summer season.
Long-term guidance: The management expects renewables, thermal power and T&D to contribute 50 per cent, 15 per cent and 35 per cent of profits over the next 4-5 years (versus FY2022 contribution of 22 per cent, 50 per cent and 28 per cent, respectively). Accordingly, 80 per cent of its ongoing capex is toward renewable power generation. Tata Power’s AT&C losses have declined to ~26 per cent levels from ~45 per cent earlier, better than its own expectations and largely in line with the government’s target. It has reduced its net debt-to-Ebitda level to 3 times from 6 times over the last few years, and would target to keep it below 3.5 times going forward.
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