Tata Power slumps after Q1 results

Tata Power slumped 13.20% to Rs 72.65 at 15:24 IST on BSE after company announced Q1 June 2013 results during trading hours today, 6 August 2013.

Meanwhile, the S&P BSE Sensex was down 317.90 points, or 1.66%, to 18,864.36.

On BSE, 25.68 lakh shares were traded in the counter as against an average daily volume of 2.56 lakh shares in the past one quarter.

The stock hit a low of Rs 68.25 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs 83 so far during the day. The stock had hit a 52-week high of Rs 113.20 on 5 December 2012.

The stock had underperformed the market over the past one month till 5 August 2013, sliding 2.22% compared with the Sensex's 1.61% fall. The scrip had also underperformed the market in past one quarter, falling 10.72% as against Sensex's 2.01% fall.

The large-cap company has an equity capital of Rs 237.31 crore. Face value per share is Re 1.

On a consolidated basis, Tata Power reported a net loss of Rs 114.70 crore in Q1 June 2013 compared with a net profit of Rs 145.93 crore in Q1 June 2012. The company reported a net loss due to higher forex loss on realignment of liabilities due to weakening of rupee and higher financing costs related to Mundra project. Total income jumped 24.54% to Rs 9111.57 crore in Q1 June 2013 over Q1 June 2012.

Profit from operations rose 56% to Rs 1416.04 crore on 29% increase in revenues to Rs 9339.49 crore in Q1 June 2013 over Q1 June 2012.

Profit from operations jumped on account of full operations in Mundra and better performance of Maithon. Higher fixed costs and fuel under-recovery have adversely impacted net profits from Mundra operations.

Revenues rose mainly on account of commissioning of all the units in Mundra, Maithon and higher volume traded by Tata Power Trading Company.

On consolidated segment-wise performance for the quarter, revenues from power business increased 43% to Rs 6893.68 crore in Q1 June 2013 over Q1 June 2012. Revenues from coal business fell 4% to Rs 2184.12 crore during the period under review.

Commenting on the company's performance, Mr Anil Sardana, managing director, Tata Power, said, "During the first quarter of FY14, the company reported revenue growth of 29% driven by robust performance of its businesses and subsidiaries. We continue to expand our international presence by entering new markets like Vietnam with 1200 megawatts (MW) Long Phu thermal power project and Europe with Hydro project in Gerogia. We are also happy to expand our solar portfolio through 28.80 MW in the Satara district in Maharashtra and continue to be a lead performer in solar power generation in India.

On the Mundra UMPP front, CERC has notified Coastal Gujarat Power (CGPL) of its decision for a compensatory tariff to be paid till the fuel situation stabilizes. A committee has been formed to evaluate the same. The decision of the CERC is an important step in resolving the major impasse affecting imported coal-based power projects. Meanwhile, CGPL is honouring its commitment and hopes for quicker resolution of the issues as the pain is making it tougher to operate."

Tata Power is India's largest integrated power company with a significant international presence.

Powered by Capital Market - Live News