Tata Power Q1 Results Review - Mixed Print; Solar Manufacturing Kicks In: ICICI Securities

ICICI Securities Report

Tata Power Company Ltd.’s adjusted profit came in at Rs 10 billion in Q1 FY25 (versus Rs 7.4 billion in Q1 FY24) aided by-

1. improved operational and financial performance of Mundra,

2. improvement in Tata Projects (associate income) offset by continued weakness in gross spread of coal impacting its Indonesian mine’s performance.

Mundra reported availability of 81% (versus 54%) and utilisation of 71% (versus 41%). In Q1, it won:

1. Supply of 0.6 GW module from its new facility,

2. new transmission project with cost of Rs 25 billion.

However, there was no accretion in pipeline of renewables asset and EPC orderbook was stagnant at Rs 132 billion. We expect near-term earnings to be driven by earnings from solar manufacturing and solar rooftop. Maintain Buy with SOTP-based target price of Rs 500/share.

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