Tata Power Company lost 0.62% to Rs 71.75 at 9:23 IST on BSE, with the stock witnessing initial volatility after the company reported impressive Q2 September 2016 results after market hours yesterday, 29 November 2016.
Meanwhile, the S&P BSE Sensex was up 70.19 points or 0.27% at 26,464.20.
On the BSE, 1.34 lakh shares were traded on the counter so far as against average daily volume of 4.82 lakh shares in the past one quarter. The stock had hit a high of Rs 72.75 and a low of Rs 71.05 so far during the day. The stock had hit a 52-week high of Rs 84.45 on 24 October 2016. The stock had hit a 52-week low of Rs 55 on 12 February 2016. The stock had underperformed the market over the past one month till 29 November 2016, declining 7.97% compared with the Sensex's 5.54% fall. The scrip had, however, outperformed the market in past one quarter, sliding 4.87% as against the Sensex's 5.41% fall.
The large-cap company has equity capital of Rs 270.46 crore. Face value per share is Rs 270.46.
Tata Power Company (Tata Power) reported consolidated net profit of Rs 336 crore in Q2 September 2016, compared with net loss of Rs 96 crore in Q2 September 2015. Consolidated total income from operations declined 5.96% to Rs 7209 crore in Q2 September 2016 over Q2 September 2015, due to lower revenue at standalone level due to lower fuel cost & lower power purchase, lower million units (MUs) traded at Tata Power Trading Company (TPTCL).
The company reported a turnaround in bottom line in Q2 September 2016 vis-vis corresponding previous quarter mainly due to lower mark-to-market (MTM) losses at Coastal Gujarat Power (CGPL) and better performance by key Indian subsidiaries and Indonesian coal mines.
Tata Power's CEO & Managing Director Anil Sardana said, the company has improved profitability and has maintained strong operational performance across all business verticals. The company's subsidiaries continue to perform well despite challenging circumstances. Management is confident that the company's strong growth trajectory will continue into the next quarter, Sardana said.
Tata Power's 100% subsidiaries viz. Bhira Investments nd Bhivpuri Investments (selling companies) had signed an agreement for sale and purchase of shares on 30 January 2014, to sell its 30% stake in PT Arutmin, Indonesia and associated trading and infrastructure companies for an aggregate consideration of $510 million. Consequent to certain closing adjustments to the sale consideration and other changes agreed between the parties, the selling companies have signed revised definitive agreements with PT Cakrawala Langit Sejahtera (PT CLS) a Bakrie group entity on 28 November 2016.
The sale consideration for PT Arutmin is now revised to $246.64 million from the earlier value of $390 million, pursuant to closing adjustments relating to certain prior period liabilities, which includes settlement of past claims with mining contractor, pursuant to a court order (about $80 million as company's share) and other statutory liabilities (about $50 million.). The consideration is expected to be received in a phased manner over next few years.
With regard to the infrastructure company PT Mitratama Perkasa (PTMP), in which PT Sumber Energi Andalan Tbk (Sumber) holds Tata Power's 30% equity; and Trust Energy Resources Pte, a 100% subsidiary of the company (Trust Energy) which holds Sumber, has entered into an agreement with Rwood Resources, a Bakrie Group Entity, for divestment of 94.61% stake in Sumber. The sale consideration for Infrastructure companies is now revised to $154.28 million from the earlier value of $120 million, pursuant to closing adjustments relating to prior period. The consideration is expected to be received in a phased manner over next few years.
Meanwhile, Tata Power's board decided to convene an extraordinary general meeting of the shareholders of the company on 26 December 2016, for considering and passing a resolution for removal of Cyrus P. Mistry as director of the company.
Tata Power is India's largest integrated power company with a growing international presence. The company together with its subsidiaries and jointly controlled entities has an installed gross generation capacity of 10,477 megawatts (MW) and a presence in all the segments of the power sector viz. fuel security and logistics, generation, transmission, distribution and trading.
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