Tata Power Company has reported another strong quarterly performance in Q2-FY23 buoyed by higher profits from coal and Mundra businesses, recovery in profits of TPSSL and Tata Projects, and strong performance of distribution businesses.
On consolidated basis, the company’s reported revenue for the quarter, at ₹14,150 crore, was up 49 per cent y-o-y mainly due to higher power sales across discoms and higher revenue from coal businesses. Reported PAT was up 85 per cent y-o-y at ₹940 crore (Tata Power’s share of profit was ₹820 crore, up 94 per cent y-o-y).
As per our computations, main delta in profits, both q-o-q and y-o-y, came from the performance of coal and Mundra businesses, while the ₹230-crore q-o-q recovery in bottomline for Tata Projects was negated by a similar amount of deferred tax provision. For CGPL, tariff determination by CERC as per section-11 of the Electricity Act may help reduce under recoveries related to variable charges, and may increase profit for FY23 beyond our revised estimates.