Tata Power's first quarter consolidated profit is seen rising 36 percent year-on-year to Rs 28 crore due to reduction in finance cost after loan refinancing, according to average of estimates of analysts polled by CNBC-TV18.
Higher profitability at Maithon, higher EBIT spread for coal and lower losses at Mundra may drive bottomline.
Revenue is likely to be flat at Rs 9,250 crore for the quarter against Rs 9,235 crore year-ago period. Operating profit may fall 5 percent to Rs 2,073 crore and margin may shrink 112 basis points to 22.5 percent on yearly basis.
Analysts expect power generation of 10,337 million units against 11,170 million units YoY and flat volumes at Mundra to offset by higher volumes at Mumbai and Delhi circles.
They see lower losses at Mundra due to lower fuel cost and coal processing charges.
According to analysts, coal price decline may reduce profitability in coal business but aid profitability for power business.
They expect tax rate to decline from over 45 percent to 35 percent.
Key things to watch out for would be compensatory tariff order, sale of BUMI mines, Docomo pay off and Mundra losses.
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