Tata Power Q2: Analysts expect PAT at Rs 275 cr

Private power producer Tata Power is expected to report a consolidated profit after tax at Rs 275 crore in the July-September quarter of current financial year as against net loss of Rs 1,187 crore in a year ago period.

The loss in the second quarter of previous financial year was due to impairment and forex related provisions.

Net sales are seen going up by 19 percent to Rs 7,451 crore from Rs 6,282 crore during the same period led by higher generation at Mundra and Maithon plants.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 12 percent YoY to Rs 1,554 crore in the quarter.

EBITDA margin is expected to fall by 120 basis points YoY to 20.9 percent in the three months period ended September 2012.

Analysts feel the rupee depreciation is expected to result in translation gains.

Investors should watch out for merchant power rates; production and realization rates at Bumi mines; coal blending at Mundra UMPP; reversal of any impairment gain due to sharp correction in coal prices; and progress on future plans such as expansion in generation capacity & impact of coal on PLFs.