Shares of Tata Power gained on Monday after the company announced its Q3 results for the financial year 2023 on Friday. The company, which is the country's largest integrated power firm, reported a 90.61% rise in its consolidated net profit to ₹1,052 crore. The company had posted a net profit of ₹551.89 crore in the quarter that ended on December 31, 2021.
The revenue from operations during the quarter surged to ₹14,401 crore, a growth of 30.70% compared to ₹11,018.73 crore in the same period a year ago.
On Monday, the company's shares responded positively to the solid Q3 numbers, with the stock opening at ₹209 apiece, compared to the previous closing price of ₹205.30. The stock gained further, reaching an intraday high of Rs. 212.85, up 3.7%.
At 12:00 p.m., the stock was trading at Rs. 210.15, up by 2.36%, on the NSE.
Commenting on the results, Praveer Sinha, CEO & MD of Tata Power, said, "We are pleased to report another quarter of strong financial results with profit after tax growing for the 13th consecutive quarter. The stellar performance from all our business clusters- generation, transmission, distribution, and renewables has placed us in a very bright spot."
The first three quarters of the current fiscal year have ended on a strong note, delivering sequential revenue growth and profit, he added.
Further, he said that the latest quarter saw significant strides in various businesses associated with green energy platforms and transmission & distribution (T&D) business.
For the first three quarters of the current fiscal year, the company reported an 88% jump in its consolidated net profit at ₹2,871 crore as against a net profit of ₹1,523 crore in the same period a year ago.
The consolidated revenue also grew by 42 percent to ₹43,278 crore in the nine months as compared to ₹30,491 crore in April-December 2021.
Following the Q3 results, brokerage firm HDFC Securities maintained its "add" rating on the stock with a target price of ₹243 apiece, indicating an upside of 16.26% from the stock's previous closing price.
The company’s planned 4 GW of extended module and cell capacity is expected to be rolled out in September 2023 and December 2023, respectively. Its EPC order book remains strong at Rs. 154 billion (3.9 GW) and is gaining traction, said HDFC Securities.
Renewable Energy capacity increased to 6.1GW in Q3FY23 with an installed capacity of 3.9GW and 2.2GW is under various stages of implementation, it added.
The stock has underperformed in the last one year, delivering a negative return of nearly 18%, but in the last three-year period, the stock produced a stellar return of 264%, while in the last five years, it is up by 153%.
Tata Power, along with its subsidiaries and jointly controlled entities, has an installed/managed capacity of 14,101 MW. The company has its presence across the entire power value chain, including the generation of renewable as well as conventional power, including hydro and thermal energy, transmission & distribution, and trading.
Meanwhile, Tata Power has energised 3,080-plus public and captive electric vehicle (EV) charging points across 493 locations, along with 30,000-plus home chargers and 234 bus charging points, as per media reports.
20 analysts polled by MintGenie on average have a 'hold' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.