Tata Power is expected to announce March quarter results on May 19. The company is likely to report net profit at Rs 91 crore in the fourth quarter of FY15 as compared to a loss of Rs 145 crore year-on-year. According to a CNBC-TV18 poll, net sales may be marginally up 0.3 percent at Rs 8875 crore versus Rs 8845 crore in corresponding quarter last fiscal.
Analysts are expecting Tata Power to report small profit this quarter driven by higher EBITDA from Mundra led by decline in fuel cost despite a slight decline in plant load factor (PLF). PLF at Mundra is seen at 81 percent in Q4FY15 versus 79 percent in year-ago period. Lower losses are seen at Mundra due to higher plant availability factor (PAF). However, losses at Mundra will continue to hurt consolidated earnings.
Subdued coal prices will continue to limit contribution from the international coal business, say analysts. Other regulated businesses should report steady earnings. Margins may improve due to better margin from power business but will be offset by lower margin from coal business. Higher interest cost may be dented by lower depreciation year-on-year.
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