Tata Power may post Q2 PAT at Rs 123cr vs Rs 84 cr loss

Private power generation company Tata Power will announce its second quarter earnings today. According to a CNBC-TV18 poll, the company may disappoint with numbers again on weak coal realisation.

The company has an exposure of USD 2.5 billion of forex loan; hence mark-to-market loss (non-cash) due to steep rupee depreciation may impact net profit negatively.

Analysts expect profit after tax for the quarter at Rs 123 crore as against loss of Rs 84 crore in a year ago period and net revenue is seen rising 19.4 percent year-on-year to Rs 9,133 crore in the quarter gone by.

During the same period, earnings before interest, tax, depreciation and amortisation may spike 25.4 percent Y-o-Y to Rs 1,829 crore and operating profit margin may expand 100 basis points to 20 percent.

Coal margins shrunk in Q2 as realisations are low, which partly negated by rupee depreciation. September quarter is a seasonally weak for coal production volume at KPC/Arutmin.

Mundra UMPP losses are expected to be at similar levels of last year around Rs 380 crore, feel analysts. During the quarter, capacity addition is driven by all five units operational at Mundra compared to two units previous year.