Tata Power plunges by 8 pc on bourses over muted Q2 numbers

MUMBAI: Shares of Tata Power plunged by as much as 8 per cent in morning trade on the bourses today after the leading power utility posted a staggering consolidated net loss of Rs 1,218.86 crore for the three months ended September.

The company's September quarter results took a beating on account of provisioning of Rs 1,461.96 crore toward impairment charges and forex losses related to its upcoming Mundra UMPP.

The company had reported a consolidated net profit of Rs 672.54 crore for the second quarter last fiscal.

Reacting to the numbers, shares of the company opened on a weak note and then lost 7.46 per cent to an early low of Rs 93 on the BSE. In a similar fashion, they tanked by 7.94 per cent to Rs 93.30 on the National Stock Exchange.

However, the stock made up some of the lost ground in later trade and was quoting 3.98 per cent lower at Rs 96.50 on the BSE and was down 4.69 per cent at Rs 96.60 on the NSE at 1025 hours.

Apart from provisioning related to Mundra, Tata Power said its profitability was hit by a differential cost of Rs 50.39 crore in connection to its 1,050-MW Maithon project.

"The 4,000-MW Mundra UMPP and the 1,050-MW Maithon Power Project are in advanced stages of completion. We are also on track on all our other projects, which are under implementation," Tata Power Managing Director Anil Sardana said.