Why Tata Power Shares Are Upbeat After Q1

Tata Power‘s share price continued to make gains for the third straight session on Thursday as the company released its numbers for the April-June period.

What Happened: The Tata Group company’s consolidated net profit for the period was up 22.39% to reach ₹972.5 crore as against the ₹794.6 crore profit it booked in the year-ago period. The number also beat consensus estimates of around ₹7,500 crore. The energy giant’s revenue from operations went up 4.5% to ₹15,213.3 crore compared to 14,495.5 crore in the June quarter of 2022.

The company’s EBITDA went up 74% year-over-year to ₹2,943.6 crore. EBITDA margin for the period came in at ₹19.35%. Basis earnings per share for the quarter came in at ₹3.04.

Praveer Sinha, Tata Power’s CEO and managing director, announced that the company achieved a 15th consecutive quarter of profit growth due to robust performance in all business sectors. He also added that Tata Power has outlined around ₹12,000 crore of capital expenditure for the current fiscal year.

Reacting to the results, global brokerage firm CLSA maintained its “sell” rating on the stock with a price target of ₹195. The firm said that the quality of results remains challenging as one-off items drove PAT. The analysts also added that at current valuations the stock is expensive.

Price Action: Tata Power’s share price was up 0.77% to trade at ₹236.70 as the markets opened on Thursday.

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