Gujarat Industries Power Company dropped 1.96% to Rs 82.50 at 12:30 IST on BSE after the company said its profitability for the year ending 31 March 2015 will be further adversely impacted after repairs to Surat Lignite Power Plant.
The company made announcement during market hours today, 24 February 2015.
Meanwhile, the S&P BSE Sensex was up 32.34 points or 0.11% at 29,014.67.
On BSE, so far 2,214 shares were traded in the counter as against average daily volume of 13,816 shares in the past two weeks.
The stock hit a high of Rs 85 and a low of Rs 82.10 so far during the day. The stock had hit a 52-week high of Rs 106.40 on 1 July 2014. The stock had hit a 52-week low of Rs 54.55 on 25 February 2014.
The stock had underperformed the market over the past one month till 21 February 2015, falling 2.72% compared with 1.04% fall in the Sensex. The scrip had also underperformed the market in past one quarter, declining 4.65% as against Sensex's 2.26% rise.
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The mid-cap stock has equity capital of Rs 151.25 crore. Face value per share is Rs 10.
The Unit -1, 125 megawatts of Surat Lignite Power Plant (SLPP) of the company, Surat tripped on 29 November 2014, due to a technical snag in the stator winding of the generator differential protection. Gujarat Industries Power Company said that Bharat Heavy Electricals (Bhel) has carried out all required tests at their Hyderabad works and on technical assessment of the said results have finally termed the damage to the stator as irreparable. The company had therefore ordered fresh stator assembly on Bhel using the company's existing stator frame casing. The said fresh procurement will cost around Rs 20 crore to the company and to this extent the company's profitability for the year 2014-15 will be adversely impacted apart from what is already incorporated in Q3 December 2014 results. As per the indications available, the fresh stator part ordered is likely to be operational by end of March 2015 first week of April 2015. The company is adequately insured against material damage and business interruption loss aspects arising on account of the said stator failure.
Gujarat Industries Power Company's net profit fell 49.8% to Rs 21.34 crore on 17.9% decline in total income to Rs 294.34 crore in Q3 December 2014 over Q3 December 2013. Profits reported for the quarter was lower by Rs 19.21 crore due to the expected short recovery of fixed costs for the current financial year as per the provision of PPA, as well as the provision for the repairing expenditure on best technical estimates.
Gujarat Industries Power Company (GIPCL) was incorporated in 1985 as public limited company under the auspices of Government of Gujarat. The company is engaged in business of electrical power generation. The total present capacity of Vadodara and Mangrol plants is 815 MW. The company has a vision to transform itself into a national level power sector enterprise.
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