What to expect from Tata Power's Q2 result?

Tata Power, part of Tata Group of companies will be coming out with its second quarter earnings on Tuesday, November 29, 2016. Tata Power is one of the largest power generation companies in the private sector.

Revenue for the second quarter is expected to come down compared to the corresponding quarter of the previous fiscal. Revenue for the quarter may see a decline of close to 20 per cent, also operational performance of the power producer can see a decrease.

Margins in Q2 may also take a hit. However, higher plant availability factor at Mundra Ultra Mega Power Projects (UMPP) is likely to aid margins from tumbling further in the quarter in review.

Key things to watch out would be management commentary, execution of power projects and integration of Welspun wind power business which it acquired.

Board meeting would also hold importance as Cyrus Mistry would chair the meet and it would be interesting to see if Tata Sons, the majority shareholder would pass any resolution for his ouster from the company.

Ahead of the result, shares of Tata Power closed flat with negative bias at Rs 72.20 on NSE.