Tata Power posts surprise loss

Tue Nov 6, 2012 7:42pm IST

People are silhouetted against the backdrop of overhead wires and cables on a street in the old quarters of Delhi October 4, 2012. REUTERS/Mansi Thapliyal

People are silhouetted against the backdrop of overhead wires and cables on a street in the old quarters of Delhi October 4, 2012.

Credit: Reuters/Mansi Thapliyal

Related Topics

Stocks

   

REUTERS - Tata Power Company Ltd (TTPW.NS) posted a surprise second-quarter loss, hit by higher finance and depreciation costs at its power projects and lower revenue from its coal units.

The company, which operates 6,899 MW generation capacity, said its bottomline was mainly impacted by an additional impairment charge of 2.5 billion rupees due to a change in the long-term foreign currency outlook at its western India plant.

It has so far commissioned 2,400 MW out of a 4,000 MW power plant it is building at Mundra in western India. The project, which runs on imported coal from Indonesia, has been suffering from mounting losses after the South East Asian nation last year raised levies on coal exports.

Tata is unable to pass on the cost increase on imported coal, but has asked India's central electricity regulator for a tariff hike. It is still awaiting a decision.

The company posted a consolidated net loss of 838 million rupees, compared with a net loss of 11.9 billion rupees a year earlier. Revenue rose 22 percent to 76.5 billion rupees, helped by the commissioning of new units.

Analysts had expected Tata Power to post a net profit of 2.46 billion rupees, according to Thomson Reuters I/B/E/S.

The company said pre-tax profits at its power business jumped 55 percent to 7.2 billion rupees, mainly due to three new units it started this year.

Tata Power, which also co-owns two mines in Indonesia along with Bumi Plc BUMIP.L, said its coal mining business saw pre-tax profits fall 51 percent to 2.9 billion rupees as global coal prices fell.

Tata Power shares closed 0.9 percent higher in a firm Mumbai market. The stock has gained 22 percent so far this year, matching a rise in the main stock index .BSESN. (Reporting by Sumeet Chatterjee and Prashant Mehra; Editing by Sunil Nair and Mike Nesbit)

FILED UNDER:

INTERNAL SECURITY

REUTERS SHOWCASE

Setback For Sahara

Setback For Sahara

Supreme Court defers verdict on Sahara plea to raise more debt on hotels  Full Article 

SpiceJet Crisis

SpiceJet Crisis

SpiceJet says fleet grounded on lack of fuel  Full Article 

Drug Patents

Drug Patents

Novartis sues Cipla over respiratory drug Onbrez   Full Article 

Boost for Tata Steel

Boost for Tata Steel

Tata Steel restarts key iron mines amid shortage  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

India Outlook

India Outlook

ADB trims growth forecasts for developing Asia, says India to grow 5.5 pct in 2014  Full Article 

Real Estate

Real Estate

HDFC to raise $500 mln real estate private equity fund - sources  Full Article 

Banking Sector

Banking Sector

Japan banks to bulk up India presence on improving ties   Full Article 

U.S. Spending Bill

U.S. Spending Bill

Obama signs bill $1.1 trillion government spending bill  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage