Tata Power slips after dismal Q2 numbers

Tata Power Company fell 2.65% to Rs 86.40 at 10:45 IST on BSE after reporting consolidated net loss of Rs 77.75 crore in Q2 September 2014, compared with net profit of Rs 74.97 crore in Q2 September 2013.

The result was announced after market hours on Thursday, 13 November 2014.

Meanwhile, the BSE Sensex was up 45.49 points, or 0.16%, to 27,986.13.

On BSE, so far 3.03 lakh shares were traded in the counter, compared with an average volume of 5.22 lakh shares in the past one quarter.

The stock hit a high of Rs 87 and a low of Rs 85.50 so far during the day. The stock hit a 52-week high of Rs 115.25 on 9 June 2014. The stock hit a 52-week low of Rs 68.95 on 30 January 2014.

The stock had underperformed the market over the past one month till 13 November 2014, rising 4.29% compared with 5.90% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 0.17% as against Sensex's 7.80% rise.

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

On a consolidated basis, Tata Power Company's total income decreased 1.32% to Rs 8359.44 crore in Q2 September 2014 over Q2 September 2013.

Total income from operations fell 4.23% to Rs 8394 crore in Q2 September 2014 over Q2 September 2013, mainly due to lower realisation by coal companies, and lower fuel cost in Mumbai Operations.

Profit from operations fell 13.86% to Rs 1156 crore in Q2 September 2014 over Q2 September 2013, mainly due to lower sales realisation from coal companies and lower contribution from Trombay Unit 8. However all operations continue to perform well.

Net loss was reported at Rs 78 crore in Q2 September 2014 compared with net profit of Rs 75 crore in Q2 September 2013, was mainly due to lower coal prices impacting profitability of coal mines. All other operations have performed well. The company has also made provision for certain expenses pertaining to coal mines following deallocation of coal mines by Supreme Court.

On consolidated segment-wise performance for the quarter, revenues from power fell 3% to Rs 6201 crore in Q2 September 2014 over Q2 September 2013, due to lower fuel cost due to lower generation and lower volume traded by Tata Power Trading Company Limited (TPTCL).

Segment result of power rose 12.44% at Rs 994 crore in Q2 September 2014 over Q2 September 2013, due to lower depreciation charge in Coastal Gujarat Power Limited (CGPL).

Revenue from coal business fell 10.54% to Rs 2079 crore in Q2 September 2014 over Q2 September 2013. Segment results from coal business fell 26.05% to Rs 159 crore in Q2 September 2014 over Q2 September 2013, due to lower price realisation from coal companies despite higher volumes sold. Despite falling global coal prices, losses in coal companies have been minimized by prudent cost control measures.

The company continued its robust operations and performed well despite a volatile macro environment. Consolidated Generation for the quarter stood at 10,946 million units (MUs). Mundra reported generation of 5722 MUs as compared to 5425 MUs in corresponding quarter last year. Maithon plant reported 1577 MUs as compared to 1211 MUs. Trombay Thermal Power Station generated 1416 MUs while Hydro Power Stations generated 398 MUs. Wind Farms generated 282 MUs .Jojobera Thermal Power Station generated 818 MUs and Haldia reported generation of 209 MUs. Industrial Energy Limited reported generation of 468 MUs and. TPREL generated 55 MUs. Solar plants recorded generation of 1 MU, the company said.

Tata Power Company's Board of Directors of the company (Transferee Company or Company) at meeting held on 13 November 2014 considered and approved the Scheme of Amalgamation of Chemical Terminal Trombay, a wholly owned subsidiary (Transferor Company) with the Company (Scheme). As per the Scheme, the entire undertaking of the Transferor Company would be transferred to the Transferee Company as a going concern together with all assets and liabilities of the Transferor Company. The Appointed Date of the Scheme would be 1 April 2014. Tata Power Company said that no shares of the Company will be issued to the shareholders of the Transferor Company as it is a wholly owned subsidiary of the Company. Upon the Scheme coming into effect, the Transferor Company will be dissolved without being wound up, Tata Power Company added.

Tata Power is India's largest integrated power company with a growing international presence. The company together with its subsidiaries and jointly controlled entities has an installed gross generation capacity of [8613] MW in India and a 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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