Tata Power Company drops after weak Q1 outcome

Tata Power Company lost 3.3% to Rs 74.70 at 14:45 IST on BSE after consolidated net profit fell 76.09% to Rs 72.49 crore on 6.42% decline in total income to Rs 6790.58 crore in Q1 June 2016 over Q1 June 2015.

The result was announced during trading hours today, 23 August 2016.

Meanwhile, the S&P BSE Sensex was down 65.94 points, or 0.24%, to 27,919.60

On BSE, so far 16.86 lakh shares were traded in the counter, compared with average daily volume of 4.67 lakh shares in the past one quarter. The stock hit a high of Rs 78.30 and a low of Rs 73.80 so far during the day. The stock had hit 52-week high of Rs 79.20 yesterday, 22 August 2016. The stock had hit 52-week low of Rs 55 on 12 February 2016. The stock had outperformed the market over the past 30 days till 22 August 2016, gaining 7.22% compared with 0.66% rise in the Sensex. The scrip also outperformed the market in past one quarter, advancing 7.74% as against Sensex's 10.59% rise.

The large-cap company has equity capital of Rs 270.46 crore. Face value per share is Re 1.

Tata Power Company said that Q1 bottom line was impacted due to one off items as well as first time impact on account of Indian Accounting Standards (Ind AS). During Q1 June 2016, the company's wholly-owned subsidiary Coastal Gujarat Power (CGPL) had Rs 286 crore adverse profit after tax (PAT) impact due to overhauls had a lower than 80% availability factor which has led to Rs 90 crore PAT impact. CGPL had one time cost on account of dredging of Rs 33 crore. CGPL had extra depreciation of Rs 30 crore due to impairment reversals. Tata Power also had an impact of Rs 133 crore due to mark-to-mark forex movement in the profit & loss (P&L).

Tata Power Company's CEO & Managing Director Anil Sardana said that the company's focus on operational improvements have continued to show good results. All the company's subsidiaries and plants have shown strong performance despite very challenging circumstances, Sardana said. The company has grown its footprint and commissioned projects at South Africa & Zambia, he said. This quarter reflects changes in treatment of forex mark-to-mark, interest on equity to CGPL and several items that have impacted PAT due to change to Ind AS, Sardana said. He said that the company aims to pursue a well charted growth strategy by demonstrating a high level of commitment towards cleaner sources of generation thus increasing the share of non-fossil fuel based energy output to 30-40% by 2025.

Tata Power Company is India's largest integrated power company with a growing international presence. The company has presence in all the segments of the power sector viz. fuel security and logistics, generation (thermal, hydro, solar and wind), transmission, distribution and trading.

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