Tata Power surges over 2% on strong Q2 results

Market capitalisation of the company has jumped by Rs 459 crore to Rs 19,987.21 crore

Shares of Tata Power today rose by over 2% after the company reported a turnaround in second quarter profits, following which the market capitalisation of the company shot up by Rs 459 crore.

Shares of Tata Power closed at Rs 73.90, up 2.35%, on BSE. During the day, the stock touched an intra-day high of Rs 74.35, up 2.97% from its previous closing.

Following the uptick on the counter, the market capitalisation of the company jumped by Rs 459 crore to Rs 19,987.21 crore.

On the NSE, the stock settled at Rs 74.05, up 2.49%, Intra-day the stock jumped 3.11% to Rs 74.50.

Tata Power on Tuesday have posted a consolidated net profit of Rs 336.2 crore for the quarter ended on September 30, 2016, on better performance by key Indian subsidiaries as well as Indonesian coal mines.

The company had posted a consolidated net loss of Rs 95.8 crore in the July-September period of previous financial year.

Total income from operations (net) declined to Rs 7,208.8 crore in the quarter under review from Rs 7,666.3 crore in the year-ago period.

The income from operations declined due to "lower revenue at standalone level due to lower fuel cost & lower power purchase," the company had said.

Meanwhile, Tata Power today said it will sell its 30% stake in Indonesia-based coal company PT Arutmin for a sharply lower consideration of $246.64 million after entering into revised pacts that take into account certain prior liabilities.