Tata Power drops 6% on profit booking after third quarter results | Markets News – Business Standard
Shares of Tata Power Company fell 6 percent to Rs 367.40 on the BSE in intraday trade on Monday on profit booking after the company reported a flat consolidated profit after tax (PAT) of Rs 1,076 crore for the December quarter ( Q3FY24). The Tata group’s power producer and distribution company had posted a PAT of Rs 1,052 crore in the last year quarter (Q3FY23).
However, Tata Power reported its 17th consecutive quarter of PAT growth. Better realization in the core business segments comprising Generation, Transmission & Distribution and Renewable Energy has helped the company grow the PAT reported in Q3 2024.
The company’s consolidated revenue in the period under review also registered a modest growth of 3 percent to Rs 14,841 crore, compared to Rs 14,439 crore in the year-ago period. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter grew 15 percent year-on-year to Rs 3,250 crore.
The demand for energy continues to rise and saw a quarter-on-quarter growth of 10 percent in the third quarter of 2024.
With the country witnessing a surge in energy demand, Tata Power is well positioned to capitalize on the growth momentum with its advanced, customized and cost-effective clean and green energy solutions, management said.
Moreover, management believes that the recently launched Pradhan Mantri Suryoday Yojana (target to provide 10 million households with solar rooftops) could have potential for 30-40 GW of new solar additions. The company is the market leader (20-25 percent market share) in the rooftop solar energy segment.
Tata Power’s recalibrated strategy, which includes tapping into high-margin renewable energy (RE) opportunities, venturing into brownfield pumped hydro storage, expanding transmission business beyond distribution, and a visible solution to the Mundra issue, positions the company for accelerated growth, Tata Power analysts said. JM Financial institutional securities.
Management expects this trend to continue for at least another 2-3 years. Globally, the downward trajectory of coal prices is being halted and is likely to remain stable in the future. Hence, the brokerage firm has maintained ‘BUY’ rating of Tata Power with a SOTP-based target price of Rs 440 per share.
At 10.48 am, the stock was trading 6 per cent lower at Rs 367.75, compared to a decline of 0.45 per cent in the S&P BSE Sensex. The average trading volumes on the counter increased 1.5 times with a total of 24.26 million shares changing hands on the NSE and BSE till the time of writing this report.
Shares of Tata Power had touched an all-time high of Rs 412.90 on Friday, February 9, 2024. Despite today’s decline, the stock has outperformed the market over the past six months, rising 60 percent compared to the market’s 9 percent gain. the reference index.
First print: February 12, 2024 | 11:08 am IST