November 7, 2012 / 4:22 AM / 5 years ago

MARKET EYE-Tata Power falls after surprise Q2 loss

* Shares in Tata Power Co Ltd fall 1.03 percent after
posting a surprise second-quarter loss on Tuesday, hit by higher
finance and depreciation costs at its power projects and lower
revenue from its coal units.
* 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.
* Barclays says profitability at Mundra power project may remain
under pressure until the legal process for tariff revision is
concluded.
* The investment bank has cut its earnings estimates by 17-21
percent to reflect weak first-half performance.
* Barclays maintains its 'neutral' rating on the stock and cut
its target price to 97 rupees from 99 rupees.

 (abhishek.vishnoi@thomsonreuters.com)

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