Tata Power and Adani Power dropped 2.7% and 2.34% respectively at 14:30 IST on BSE after reports of a tribunal rejecting a power regulator order allowing them to charge higher electricity prices from procurers than agreed upon from plants in Mundra.
Meanwhile, the BSE Sensex was down 125.33 points, or 0.53%, to 24,769.77.
Shares of Tata Power Company dropped 2.7% to Rs 64.85. The stock hit high of Rs 70 and low of Rs 60.60 so far during the day. On BSE, so far 59.46 lakh shares were traded in the counter, compared with an average volume of 4.41 lakh shares in the past one quarter.
Shares of Adani Power declined 2.34% to Rs 33.40. The stock hit high of Rs 35.65 and low of Rs 30.20 so far during the day. On BSE, so far 57.40 lakh shares were traded in the counter, compared with an average volume of 9.88 lakh shares in the past one quarter.
According to reports, Appellate Tribunal For Electricity (APTEL) has rejected a power regulator's order that allows these two power companies to charge higher prices from procurers than agreed upon for electricity produced from their plants at Mundra in Gujarat. Tata Power and Adani Power might go to the Supreme Court against the order, reports suggested.
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Adani Power, which had already factored-in the revenues of the compensatory tariff in their account books, will be reportedly hurt more by the APTEL's order. APTEL while pronouncing the order, also remarked that Central Electricity Regulatory Commission (CERC) has no power to grant compensatory tariffs, report added.
Tata Power Company's consolidated net profit fell 87.6% to Rs 24.46 crore on 8.9% rise in net sales to Rs 9230.47 crore in Q3 December 2015 over Q3 December 2014.
Adani Power reported consolidated net profit of Rs 101.75 crore in Q3 December 2015 compared with consolidated net loss of Rs 428.68 crore in Q3 December 2014. Net sales rose 12.5% to Rs 6184.08 crore in Q3 December 2015 over Q3 December 2014.
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