RTN Power Ltd (Rs.4.50): Quarterly Result Analysis:

On both Standalone and Consolidated basis, RattanIndia Power Ltd came up with good set of numbers. I've already displayed the Consolidated number. Now let's look at the Standalone quarterly Result.

Standalone:

The total income of the company for the June, 2022 quarter came at Rs.923.98 Cr Vs Rs.958.10 Cr in June, 2021 quarter, showing a marginal decline.

The profit before tax (PBT) in Q1FY23 came at Rs.113.95 Cr Vs Rs.87.10 Cr, showing a sharp rise in profit.

The net profit of the company in Q1FY23 is the same as PBT.

The most important part of the June quarter result is that interest outgo has come down to Rs.127.18 Cr as against Rs.154.49 Cr in Q1FY22. The management has said that the company hopes to become debt free within a couple of years.

The EPS of the company improved to Re.0.21 in June quarter Vs Re.16 in Q1FY22.

Also, the net profit margin of the company on Standalone basis shot up to 13.52% Vs 9.96% in June, 2021 quarter.

Now there's another catch: The cost of material consumed is expected to come down further as the coal prices are correcting. This Positive development will show up in the following quarter numbers.

Massive Land Bank:

Moreover, the company has good land bank, which we will see below. 

Nashik Thermal Power Plant in situated near Sinnar, 40 kilometers from Nashik city in Maharashtra, India. 

The plant spreads over an area of 1,040 acres has an installed capacity of 1,350 MW. Sinnar Power Plant has coal linkages from Coal India Limited (CIL) subsidiaries.

Amravati Thermal Power Plant is situated in Nandgaonpeth, 13 kilometers from Amravati city, Maharashtra in India.

Amravati Plant comprises of 5 units of 270 MW, bestin-class, BHEL units with total installed capacity of 1350 MW.

The company has 25 years power purchase agreement with Maharashtra State Electricity Distribution Company Limited (MSEDCL). Amravati Plant had 100% plant availability factor and is currently operating at a plant load factor of 86%.

Amravati Power Plant is spread over 1350 acres of land at MIDC Industrial Area. 

Buy the stock of this power company, which is available at the price of dirt in market declines, with the anticipation of the company becoming debt free within a couple of years.