Tata Power posts Q1 loss of Rs.115 crore

Tata Power Tuesday posted a net loss of Rs.115 crore in the April-June quarter caused by higher finance costs and foreign exchange losses due to the weakening rupee.

The company's revenue for the quarter went up by 29 percent at Rs.9,339.49 crore as compared to Rs.7,253.89 crore for the same quarter a year ago.

Profit from operations rose 56 percent at Rs.1,416.04 crore as compared to Rs.908.16 crore for the corresponding quarter of the last fiscal.

The company said higher fixed costs and fuel under-recovery have adversely impacted net profits from its Mundra power plant in Gujarat.

Tata Power's biggest domestic power plant has come under financial stress pending implementation of a regulatory decision allowing it to pass on the rising costs of imported coal to customers.

Tata Power, has been expanding its business abroad, including in Africa and the Middle East and the company said that during the quarter it has been awarded the 1200 MW Long Phu 2 project by the Vietnam government.

The Tata Power stock fell almost 18 percent Tuesday to Rs.71.35, down 12.35 points or 14.76 percent, on the Bombay Stock Exchange (BSE).