Tata Power Co. reports strong Q2 FY24-25 results, operating cash flow and PBT on the rise

Nov 05 2024 04:41 PM IST
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Tata Power Co. has reported a strong financial performance in Q2 FY24-25, with a score of 11 out of 13. The company's operating cash flow has been consistently growing, and it has shown improvement in managing interest payments. However, the dividend payout ratio has been consistently low. MarketsMojo has given a 'Hold' call for the company's stock.

Tata Power Co. has declared its financial results for the quarter ending September 2024. The company has shown positive financial performance in Q2 FY24-25, with a score of 11 out of 13. This is a slight decrease from the previous quarter, but still reflects a strong performance.

One of the key factors contributing to Tata Power Co.'s success is its operating cash flow, which has been consistently growing over the last three years. In the last five quarters, the company has also shown improvement in its ability to manage interest payments, with a high operating profit to interest ratio.

The company's profit before tax (PBT) has also seen a significant increase of 43.6% compared to the average of the previous four quarters. This trend is expected to continue in the near term. Additionally, Tata Power Co. has shown a strong operating profit margin of 23.86%, indicating improved efficiency.

On the downside, the company's dividend payout ratio (DPR) has been consistently low at 17.29% over the last five years. This means that Tata Power Co. is distributing a lower proportion of its profits as dividends to shareholders.

Overall, Tata Power Co. has shown a positive financial performance in the quarter ending September 2024. Based on this, MarketsMOJO has given a 'Hold' call for the company's stock. Investors can keep an eye on the company's future financial results to make informed decisions.
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