19 May 2020
4QFY20 Results Update | Sector: Utilities
Tata Power
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
TPWR IN
2,705
87.5 / 1.1
74 / 27
-2/-17/-27
555
CMP: INR32
TP: INR38(+17%)
Neutral
In-line; Better Mundra-Coal JV offsets lower renewable
Debt reduction takes place but levels still elevated; Maintain Neutral
Tata Power’s (TPWR) 4QFY20 results reflect the benefit of better working of
the Mundra-Coal JV hedge offset by lower renewable (EPC + generation)
and S/A performance. Adj. PAT stood at INR2.1b (v/s INR2.3b in the
previous year).
Going forward, divestment related measures could aid cash inflow and
subsequent debt repayment. However, with continued renewable capex, and
given the current environment, we await further steps on this front. Maintain
Neutral. Successful renegotiation of Mundra PPA provides an upside risk.
Profits aided by benefits of the Mundra- Coal JV hedge
Consol. adj. PAT for TPWR came in at INR2.1b (v/s est. INR2.2b) on better
working of the Mundra-Coal JV hedge, which was partly offset by lower
performance within RE (generation + EPC) and S/A. TPWR’s current quarter
numbers too benefitted with the addition of Tata Projects as an associate
company.
Mundra (EBITDA) and coal JVs (PAT)
increased to INR3.8b (v/s INR2.4b in
4QFY19). The previous year was impacted due to the timing effect of coal
prices, in our view.
RE (ex-standalone)
PAT was down to INR0.5b (v/s INR0.8b in 4QFY19).
Solar
PAT stood at ~INR0.5b (v/s INR0.9b in 4QFY19).
Management commentary highlights: Progress on asset monetization
TPWR management has noted completing the sale of its Cennergi business
and receiving USD110m. Sale of its defense business is expected in 2QFY21
and the company is also discussing the potential sale of its Renewables and
Shipping portfolio. TPWR’s stake in Tata Projects though has been put on
hold due to low valuations being offered in the current environment.
The company has indicated a few delays in collections from its residential
customers due to extensions given by the regulator. TPWR though expects
cash flows for these to begin by end-May’20 or beginning of Jun’20.
Asset monetization can aid debt reduction; Maintain Neutral
Net debt has reduced to INR471b (from INR491b in FY19), but still remains
elevated. The company’s divestment related measures could aid cash inflow
and subsequent debt repayment. However, with continued capex in
renewables and given the current environment, we await further steps on
this front. Besides, upcoming new regulations for Indonesian coal mines
(concerning tax and royalty) could be an overhang.
The amendment of Mundra PPA, on the other hand, still awaits state
approval, and thus, we have not built in any benefit from this. Successful
renegotiation of this PPA – based on HPC recommendations – would
provide an upside. With the stock down ~40% over the past three months,
TPWR does look attractive. However, we await (a) further steps on the
monetization front, and (b) the company to emerge out of the current
situation without stretching debt. We have cut our SOTP to reflect higher
debt estimate and lower valuations for its certain EPC businesses. Maintain
Neutral with SOTP-based target price of INR38/share.
Financials & Valuations (INR b)
Y/E MARCH
2020 2021E 2022E
Sales
EBITDA
Adj. PAT
EBITDA Margin (%)
Cons. Adj. EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
Ratios
Net D:E
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA(x)
Div. Yield (%)
FCF Yield (%)
8.6
0.5
7.3
4.8
58.8
8.3
0.5
7.6
4.0
34.2
6.7
0.4
7.0
4.0
74.1
2.6
5.9
7.1
41.2
2.4
5.7
6.7
33.5
2.2
6.8
6.9
26.8
291.4 291.2 305.8
79.4
10.2
27.3
3.8
78.2
66.8
75.2
10.5
25.8
3.9
3.3
69.9
78.0
13.1
25.5
4.9
24.8
72.2
Shareholding pattern (%)
As On
Mar-20 Dec-19
Promoter
37.2
36.2
DII
27.8
26.7
FII
18.6
21.0
Others
16.3
16.1
FII Includes depository receipts
Mar-19
33.0
24.9
26.6
15.5
;
Aniket Mittal – Research Analyst (Aniket.Mittal@MotilalOswal.com); +91 22 6129 1572
13 February 2020
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
Tata Power
Quarterly Performance (Consolidated) – INR million
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
Margins (%)
Depreciation
Interest
Other Income
Rate regulated activity
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
MI & P/L of Asso. Cos.
Reported PAT
Adj PAT
1Q
73,134
4.9
55,426
17,708
24.2
6,006
10,130
898
-1,748
722
14,496
15,218
1,556
10
3,047
16,709
2,213
FY19
2Q
3Q
75,146 77,067
-1.9
10.9
56,067 61,050
19,079 16,017
25.4
20.8
6,106 6,027
10,344 10,140
1,046
148
-3,727 -1,360
-53 -1,362
593 2,380
540 1,018
935 1,498
147
3,752 1,747
3,358 1,267
2,764 -1,113
4Q
72,302
-8.4
58,816
13,487
18.7
6,035
11,087
1,867
3,433
1,665
-1,767
-102
1,152
-1,135
1,830
576
2,342
1Q
76,317
4.4
54,647
21,671
28.4
6,200
11,439
1,079
-2,000
3,111
-1,286
1,825
1,924
105
1,612
1,513
2,799
FY20
2Q
3Q
76,778 70,710
2.2
-8.2
54,218 52,661
22,560 18,050
29.4
25.5
6,544 6,719
11,300 11,292
1,072
650
-3,490 1,002
2,299 1,691
-747
279
1,552 1,970
520 1,176
33
60
1,725 1,132
2,757 1,927
3,504 1,647
FY19
4Q
66,708
-7.7
50,410
16,298
24.4
6,583
10,907
672
2,601
2,080
5,690
7,770
1,491
19
1,465
7,744
2,054
295,586
0.8
231,359
64,227
21.7
23,931
41,700
3,958
-659
1,895
16,200
18,095
6,561
36.3
10,376
21,909
5,710
FY20
291,364
-1.4
211,936
79,428
27.3
26,336
44,937
5,626
-1,887
11,895
4,099
15,994
8,253
51.6
6,535
14,276
10,177
FY20 vs Est
4QE
(%)
67,051
-1
-7.3
53,963
13,088
44
19.5
6,838
-4
10,828
1
749
-10
4,488
657
216
0
657 1,082
-60
-9
1,485
2,203
252
2,203
-7
*Note: Sum of four quarters for FY19 and FY20 does not match due to restatements
Management call highlights
Asset Monetization
TPWR completed the sale of Cennergi (a Joint Venture) for which the
company has received USD110m.
TPWR expects monetization of Strategic Engineering Division (SED) to start
by 2QFY21.
Also, TPWR is looking to monetize renewable assets.
Due to lack of interest in the current environment, TPWR has restated the
accounting for Tata Power Projects as an associate.
The company believes the sale of the shipping business can fetch INR10-
14b. Income related to shipping is in the range of USD20-25m.
Due to the lockdown, TPWR expects some delay in execution of projects. Also,
the current situation had some impact on deleveraging of the balance sheet.
However, the balance sheet does not reflect the sale proceeds of Cennergi.
Regarding collections, TPWR had normal collections coming in. However, there
are a few delays in the residential segment due to extensions given by the
regulator. The company expects the cash flows for these to begin by end-May or
beginning of Jun’20.
TPWR does not see any delay in terms of payment from DISCOMs. The only
issue is in Andhra Pradesh, where the company has received lower payments.
Total dues from the state stands at ~INR2b. The state’s total outstanding within
renewables greater than 3 months stands at ~INR6b. Plant availability for its
Walwhan assets has been very good. However, challenges have been faced in
terms of weather changes.
At Mundra, the company has brought down the loss funding and is looking to
amend PPAs separately - once the approval is received from the regulator.
Other key takeaways include:
From the recent DISCOM package announced by the govt., TPWR expects
~INR10b. Also, the company has decided not to avail any moratorium.
2
19 May 2020
 Motilal Oswal Financial Services
Tata Power
TPWR is planning to reduce the Debt/Equity to less than 1.25x with
reduction in debt by INR25b.
Regarding coal mine licenses in Indonesia, the country has come out with a
new regulation of 20-year license renewal.
TPWR’s takeover of CESU got delayed due to the lockdown. Once the
lockdown is lifted, the same would be completed.
TPWR capex guidance for renewable in FY21 is ~INR30b while regular capex
guidance stands at INR10b.
TPWR had a true-up impact of INR0.2b in 4QFY20.
Prayagraj contributed ~INR0.1b during FY20.
TPWR has noted that bids for the next 6 months entail ~20GW of renewable
projects.
Exhibit 1: TWPR adj. PAT – INR m
a. Standalone
b. Subsidiaries
Mundra
Maithon
Delhi
Trading
Solar Manuf
RE
Logistics
Others
c. Minority interest
d. JVs and associates
Coal mining
Infra
Cennergi
Powerlink
IEL
ITPC
Others
Adj. reported PAT
4QFY19
1,241
-728
-2,910
1,040
400
80
850
790
410
-1,388
-497
2,327
1,180
540
-30
140
230
220
47
2,342
3QFY20
4QFY20
-72
26
587
563
-1,640
-2,180
760
690
930
1,040
130
60
360
510
370
520
660
470
-983
-547
-668
-721
1,800
2,186
980
990
570
290
0
0
120
130
120
510
0
0
10
266
1,647
2,054
Source: MOFSL, Company
Exhibit 2: CGPL
1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20
Revenues
INR m
15,530 15,890 19,380 19,940 18,170 16,030 18,300 17,270
per unit
INR/kwh
2.86
2.94
2.93
2.78
2.81
2.93
2.83
2.85
EBITDA
INR m
180
-630
-990
270 1,680 1,750 2,610 2,080
per unit
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
PAT
INR m
-4,320 -4,650 -4,670 -2,910 -2,470 -2,610 -1,640 -2,180
Generation
MU
5,908 5,999 7,163 7,770 7,003 5,939 6,987 6,566
Sales
MU
5,434 5,520 6,615 7,181 6,459 5,479 6,458 6,067
Availability
%
68
71
85
97
81
71
87
81
FoB price of coal USD/t
62
65
62
55
53
54
49
47
Revenue
INR/kWh
2.70
2.90
3.00
2.81
2.85
2.96
2.83
2.80
Under recovery INR/kWh
-0.92
-0.83
-0.95
-0.64
-0.55
-0.51
-0.32
-0.45
Source: MOFSL, Company
19 May 2020
3
 Motilal Oswal Financial Services
Tata Power
Exhibit 3: CGPL (Mundra) + Coal assets – INR million
Mundra EBITDA
Coal companies PAT
Mining
Infra
Logistics
Mundra+Coal
KPC realn. - USD/t
KPC EBITDA - USD/t
4QFY19
270
2,130
1,180
540
410
2,400
57.5
8.8
1QFY20
1,680
2,470
1,570
500
400
4,150
58.9
10.5
2QFY20
1,750
2,280
1,410
550
320
4,030
55.4
2.9
3QFY20
2,610
2,210
980
570
660
4,820
52.9
10.1
4QFY20
2,080
1,750
990
290
470
3,830
53.8
11.2
Source: MOFSL, Company
Exhibit 4: Maithon Power
1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20
Revenues
INR m
6,460
6,150
7,590
8,160
8,120
5,870
6,830
6,600
per unit
INR/kwh
3.51
4.11
4.25
4.71
4.96
4.17
3.96
4.26
EBITDA
INR m
1,870
1,610
1,960
2,570
1,940
1,770
1,990
1,880
per unit
INR/kwh
1.02
1.07
1.10
1.48
1.19
1.26
1.15
1.21
PAT
INR m
630
400
670
1040
465
520
760
690
Generation
MU
1,944
1,595
1,890
1,839
1,740
1,500
1,694
1,669
Sales
MU
1,842
1,498
1,784
1,734
1,637
1,409
1,725
1,551
Availability
%
93
72
91
94
87
78
95
89
Regulated equity INR m
13,880 14,030 14,030 14,030 14,940 14,980 14,400 15,090
Source: MOFSL, Company
Exhibit 5: Renewables (ex-standalone)
1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20
TPREPL (Renewable)
Revenues
INR m
INR/kwh
EBITDA
INR m
INR/kwh
PAT
INR m
Operating capacity MW
Generation
MU
Sales
MU
WREPL (Renewable)
Revenues
INR m
INR/kwh
EBITDA
INR m
PAT
INR m
Capacity
MW
Wind
MW
Solar
MW
Generation
MU
Sales
MU
Consolidated
Capacity
MW
Generation
MU
Avg. PLF
%
Revenues
INR m
Inter-company
INR m
EBITDA (ex-ic)
INR m
PAT (ex-ic)
INR m
1780
5.4
2,080
6.3
710
724
365
329
3,470
7.1
3,300
1,010
1,153
146
1007
491
491
1,877
820
20.5
5,250
450
4,930
1,270
1950
4.9
1,880
4.7
390
724
409
398
2,910
7.0
2,720
530
1,010
146
864
417
417
1,734
815
20.6
4,860
10
4,590
910
1470
5.4
1,340
4.9
-130
724
276
271
2,820
7.2
2,730
620
1,010
146
864
390
390
1,734
661
17.4
4,290
0
4,070
490
1970
5.6
1,890
5.4
-50
824
357
351
3,420
0.0
3,010
840
1,010
146
864
455
455
1,834
806
20.6
5,390
0
4,900
790
2330
4.6
2,120
4.2
200
974
514
507
3,490
0.0
3,280
1,000
1,010
146
864
487
483
1,984
994
23.8
5,820
0
5,400
1,200
2,340
4.7
2,110
4.2
40
1130
513
503
2,780
0.0
2,510
800
1,010
146
864
373
372
2,140
876
19.4
5,120
0
4,620
840
2,050
4.3
1,830
3.8
-150
1134
478
476
2,640
0.0
2,450
520
1,010
146
864
340
336
2,144
816
17.4
4,690
0
4,280
370
2,450
4.2
2,160
3.7
-80
1139
585
579
3,100
0.0
2,690
600
1,010
146
864
340
336
2,149
919
19.5
5,550
0
4,850
520
Source: MOFSL, Company
19 May 2020
4
 Motilal Oswal Financial Services
Tata Power
Exhibit 6: Delhi Distribution
Revenues
EBITDA
PAT
Regulated equity
Regulatory assets
INR m
INR m
INR m
INR m
INR m
1QFY19
20,280
2890
940
13,480
43,270
2QFY19
20,330
2730
820
13,600
41,250
3QFY19
17,420
3160
1200
13,790
41,850
4QFY19
19,770
3230
400
14,030
45,790
1QFY20
22,110
3430
1130
14,850
47,420
2QFY20
21,680
3,340
1040
15,000
45,740
3QFY20
20,910
3,130
930
15,110
48,500
4QFY20
18,800
3,340
1,040
15,410
52,220
Source: MOFSL, Company
Valuation and View
Net debt has reduced to INR471b (from INR491b in FY19), but still remains
elevated. The company’s divestment related measures could aid cash inflow and
subsequent debt repayment. However, with continued capex on renewables
and given the current environment, we await further steps on this front.
Besides, upcoming new regulations for Indonesian coal mines (concerning tax
and royalty) could be an overhang.
The amendment of Mundra PPA, on the other hand, still awaits state approval
and we do not build in any benefit from this. Successful renegotiation of this
PPA - based on HPC recommendations - would provide an upside. With the
stock down ~40% over the past three months, TPWR does look attractive but we
await further steps on the monetization front and the company to come out of
the current situation without stretching debt. We cut our SOTP to reflect higher
debt estimate and lower valuations for its certain EPC businesses. Maintain
Neutral with a SOTP-based target price of INR38/share.
P/BV
(b)
1.5
1.5
1.6
EBITDA Equity TPWR's share
Value (%) Eq. Val.
d=axb
(e)
17,581 67,527 100
67,527
8,065 22,876 51
11,667
10,591 27,172 74
20,107
36,238
Reg. Enterprise
Debt Value (EV)
(f)
(e+f)
40,696
108,223
35,230
46,897
17,620
37,727
192,846
EV
(g x h)
132,526
-108,735
56,895
80,686
EV
(j x k)
172,288
67,960
25,164
265,411
538,943
-460,959
5,962
7,812
5,272
3,977
761
101,769
2,705
38
Remarks
RoE = 15.5%, g = 3%
RoE = 15.5%, g = 3%
RoE = 17%, g=0
Ke=11.3%
Assumptions
no under recoveries
HBA Index USD85
HBA Index USD85
Exhibit 7: SOTP valuation
Reg. Eq.
Mumbai & Jojobera (S/A)
Delhi
Maithon
Subtotal (A)
CGPL (Mundra) and coal JVs
(a)
44,568
15,098
16,982
DCF value of fixed charges
Under recoveries in Var. cost
PAT from coal JVs
Subtotal (B)
Other businesses
EV/EBITDA(x) EBITDA
(g)
(h)
19,733
8
-13,592
8
7,112
13,253
EV/EBITDA(x) EBITDA
(j)
(k)
8.0
21,536
6.0
11,327
10.0
2,516
32,863
75,242
Assumptions
Renewables
Haldia, trading etc.
PAT of other JVs and assoc.
Subtotal ( C )
Consolidated
Consolidated EV (A+B+C)
Less: Debt
Assets held for sale
Zambia & S.Africa
Tata Projects
Others
Investment unquoted
Investment quoted
Net Equity value
No. of shares
Target Price (INR/share)
1.0
15.0
1.0
1.0
0.8
x BV
x PAT
x BV
at book value
20% discount to MTM
Source: MOFSL, Company
19 May 2020
5
 Motilal Oswal Financial Services
Tata Power
Financials and Valuations
Income Statement
(INR Million)
Y/E Mar
Net Sales
Change (%)
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
Other Income
Extraordinary items
PBT
Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
2015
337,276
-5.4
69,405
18.7
21,742
47,663
36,993
4,167
0
14,837
10,749
72.4
6,004
7,600
352.9
2015
2,705
122,716
125,421
423,419
14,014
587,779
583,351
202,217
381,133
36,505
27,326
243,207
18,442
55,640
21,064
148,062
166,650
76,557
587,779
2016
295,009
-12.5
61,718
24.2
16,487
45,230
32,358
913
-978
12,807
6,803
53.1
-2,687
13,969
83.8
2016
2,705
113,629
116,334
403,486
20,969
558,286
476,643
112,536
364,108
13,449
114,468
215,266
13,734
35,402
16,740
149,389
142,311
72,955
565,036
2017
278,977
-5.4
52,372
21.0
19,886
32,487
31,140
2,022
-6,515
-3,145
-458
14.6
11,252
14,458
3.5
2017
2,705
115,090
117,795
503,154
17,598
657,237
577,520
130,311
447,209
21,779
108,592
226,458
15,996
38,321
20,521
151,621
164,127
62,332
657,237
2018
293,312
5.1
59,471
21.7
23,981
35,490
37,230
4,327
10,308
12,895
1,643
12.7
11,534
5,710
-60.5
2018
2,705
149,897
152,602
500,892
5,166
678,813
604,390
155,993
448,398
16,526
119,928
227,068
16,231
27,889
16,219
166,729
149,522
77,546
678,813
2019
295,586
0.8
64,227
21.7
23,931
40,296
41,700
3,958
16,200
18,095
6,561
36.3
11,534
5,710
-60.5
2019
2,705
164,507
167,212
500,060
10,568
699,507
599,714
173,081
426,633
25,757
128,511
234,378
17,064
44,453
9,544
163,317
132,189
102,190
699,507
2020
291,364
-1.4
79,428
27.3
26,336
53,093
44,937
5,626
4,099
15,994
8,253
51.6
7,741
10,177
78.2
2020
2,705
177,955
180,660
498,755
11,740
714,476
659,664
199,416
460,248
16,115
138,353
266,349
17,524
44,259
27,937
176,630
183,006
83,344
714,476
2021E
291,212
-0.1
75,242
25.8
27,869
47,373
45,006
5,250
4,769
12,386
3,942
31.8
8,444
10,511
3.3
2021E
2,705
186,425
189,130
502,784
11,740
728,622
703,385
227,285
476,100
16,115
140,727
262,294
17,524
42,918
41,824
160,029
183,030
79,264
728,622
2022E
305,776
5.0
77,966
25.5
29,260
48,706
43,595
5,250
0
10,361
4,640
44.8
5,721
13,119
24.8
2022E
2,705
192,486
195,191
475,056
11,740
707,860
715,763
256,545
459,218
16,115
143,723
256,464
17,524
41,103
38,809
159,029
184,074
72,390
707,861
Balance Sheet
Y/E Mar
Share Capital
Reserves
Net Worth
Debt
Deferred Tax
Total Capital Employed
Gross Fixed Assets
Less: Acc Depreciation
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash & Bank
Loans & Adv, Others
Curr Liabs & Provns
Net Current Assets
Total Assets
(INRMillion)
19 May 2020
6
 Motilal Oswal Financial Services
Tata Power
Financials and Valuations
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Price / Book Value
EV/EBITDA
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios (%)
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Leverage Ratios (%)
Net Debt/Equity (x)
2015
0.6
8.7
46.4
1.3
209.5
124.3
1.7
10.1
1.7
1.4
6.1
0.6
60
20
2.7
2015
69,405
-5,611
4,101
-8,085
59,809
-34,936
24,873
2,078
0
-2,457
-35,315
20,692
-1,026
-33,842
-5,121
-3,089
-22,386
2,109
18,956
21,064
2016
2.8
8.9
43.0
1.3
46.3
23.0
1.5
8.2
2.0
6.3
8.6
0.5
44
17
2.9
2016
61,718
20,488
19,625
-4,295
97,536
-39,864
57,672
2,141
-5,109
-10,097
-52,929
149
-13,037
-33,515
-5,908
-3,369
-55,680
-11,073
21,064
9,991
2017
5.2
12.5
43.5
0.0
0.0
11.2
1.3
11.3
0.0
11.9
6.8
0.4
50
21
3.5
2017
52,372
21,843
1,686
-6,323
69,578
-33,223
36,356
6,263
-35,396
-6,630
-68,986
9
49,608
-32,704
-4,159
-2,816
9,937
10,530
9,991
20,521
2018
5.3
14.2
56.4
0.0
0.0
10.9
1.0
10.4
0.0
10.7
6.3
0.4
35
20
2.8
2018
59,471
9,584
602
-6,019
63,639
-35,604
28,035
11,256
1,505
2,165
-20,677
2
4,370
-45,704
-5,067
-864
-47,263
-4,301
20,521
16,219
2019
2.1
11.0
61.8
1.3
61.6
15.3
0.5
9.3
4.0
3.6
5.5
0.4
55
21
2.6
2019
63,568
-13,234
462
-5,058
45,738
-35,762
9,976
4,480
24,592
-5,546
-12,236
0
-6,416
-39,761
-4,927
-740
-51,845
-18,343
16,219
-2,124
2020
3.8
13.5
66.8
1.6
41.2
8.6
0.5
7.3
4.8
5.9
7.1
0.4
55
22
2.3
2020
77,541
6,743
-4,440
-6,091
73,753
-22,258
51,495
5,626
0
11,203
-5,429
0
0
-44,937
0
-6,158
-51,096
17,228
9,544
26,773
2021E
3.9
14.2
69.9
1.3
33.5
8.3
0.5
7.6
4.0
5.7
6.7
0.4
54
22
2.2
2021E
75,242
2,366
0
-3,942
73,666
-43,721
29,945
12,505
0
20,370
-10,846
0
4,029
-45,006
-6,245
-1,710
-48,932
13,887
27,937
41,824
2022E
4.9
15.7
72.2
1.3
26.8
6.7
0.4
7.0
4.0
6.8
6.9
0.4
49
21
2.0
2022E
77,966
Cash Flow Statement
Y/E Mar
EBITDA
FX gain/loss
WC
Others
Direct taxes (net)
CF from Op. Activity
Capex
FCF
Int & div income
Investments(subs/JVs)
Others
CF from Inv. Activity
Share capital
Borrowings
Finance cost
Dividend
Others
CF from Fin. Activity
(Inc)/Dec in Cash
Opening balance
Closing balance (as per B/S)
(INR Million)
3,859
0
-4,640
77,185
-12,378
64,807
12,486
0
0
108
0
-27,728
-43,595
-7,276
-1,710
-80,308
-3,015
41,824
38,809
19 May 2020
7
 Motilal Oswal Financial Services
Tata Power
NOTES
19 May 2020
8
 Motilal Oswal Financial Services
Tata Power
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
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registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
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buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
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specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
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https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
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Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
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This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
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For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
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to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
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located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
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intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
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dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
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For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
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Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
19 May 2020
9
 Motilal Oswal Financial Services
Tata Power
********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
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the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
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Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
19 May 2020
10