Tata Power Q4 Results: Net profits jumped 49%, Rs 2 per share dividend declared

Leading power corporation Tata Power recently came out with its results for the Jan - Mar ‘23 period. Both revenue and profits witnessed growth from the previous year.

However, will it be enough to stem the share price correction? The Tata Power share price has declined by more than 5.5% in 2023 so far while over the past year it is down by close to 18%.

So, what drove the Tata Power results for the Jan - Mar ‘23 period? What were the Tata Power revenues? What were the Tata Power net profits? What was the Tata Power dividend? How will Tata Power share price react to the results in the long term? Let’s try and decode!

Decoding Tata Power Q4 Earnings

Tata Power revenues:

• Tata Power’s consolidated revenue from operations for the Jan - Mar ‘23 period came in at Rs 12,453.76 crores, up 4.1% from the previous year.
   
• The transmission and distribution business continued to generate the bulk of the revenues for the company. At Rs 8,294.9 crores, it formed about 60% of the total revenues of the company. The segment also witnessed a yearly growth of 16.4%.
   
• Generation and Renewables were the other businesses which formed the majority of the revenues next at Rs 2,882.4 crores (about 21% of the total revenues) and Rs 2,587 crores (about 19% of the total revenues), respectively.
   
• However, a worrying trend emerged as both these segments witnessed decline from the previous year. While the revenues of the generation business fell by 4.6% from the previous year, the renewables business witnessed a yearly drop of 9.1%.

Tata Power profits: Tata Power net profits for the March quarter came in at Rs 938.8 crores. This denotes a yearly jump of about 49% from the previous year.

However, profits in the previous year could have been higher if an impairment loss of Rs 467.8 crores had not occurred.

Tata Power operating margins: Tata Power’s operating margins for the Jan - Mar ‘23 period stood at 24.3%. This marks an improvement of 5.7% from the prior year.

Tata Power dividend: Tata Power declared a dividend of Rs 2 per share.

Tata Power Earnings: Analyst target price

Bank of America: The renowned global brokerage has a Buy rating on the stock with a price target of Rs 244.

CLSA: The top brokerage has a Sell rating on the stock with a price target of Rs 189.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.