Tata Power declined 6% on February 12 on the NSE following the company’s announcement of subdued profit for the third quarter of fiscal year 2024. The results were disclosed after market hours on February 9.
For Q3FY24, Tata Power reported a net profit of Rs 1,076.12 crore, marking a modest 2% year-on-year increase from Rs 1,052.14 crore. Revenue, however, exhibited a growth of 6.2% to Rs 15,294.13 crore compared to Rs 14,401.95 crore in the previous fiscal year. Furthermore, earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 20% to Rs 3,060.55 crore from Rs 2,607.61 crore.
Additionally, Morgan Stanley has issued an ‘underweight’ call on Tata Power, setting a share price target of Rs 213. According to the brokerage, the miss in Q3 earnings was driven by slower growth in the regulated business and lower margins in Utility Scale Renewables. Despite this, Morgan Stanley highlighted key positives for the business, including the execution of the solar EPC business and improved profitability of the coal JV in Q3.
As of 11:51 am, Tata Power shares were trading 6.17% lower at ₹367.90.
