Shares of Tata Power declined after the company reported an unexpected loss of Rs.6.29bn in the quarter ended March 31 versus profit of Rs.6.25bn in the same period a year ago. Analysts estimated a profit of Rs.5.67bn for the quarter.
The company attributed the loss to an impairment provision for its Mundra plant and currency losses. The company said it made a provision of Rs.8.15bn anticipating lower cash flows at the 4,000-megawatt plant being built at Mundra in Gujarat on account of fuel costs, exchange rate fluctuations and other operating expenses.
Forex losses amounted to Rs.1.66bn, compared with a gain of Rs.721.3mn a year earlier, on the back of a weaker rupee.
Reports said that a cool down in coal prices was also exerting downside pressure on the stock as as the company has excess coal at its Indonesia coal business.
The company had a generation capacity of 5,297MW, which it plans to increase to 25,000MW by 2017.
Shares of Tata Power were trading at Rs.87.35 down 3.4% over the previous close. It had touched a day’s high of Rs.88.60 and a day’s low of Rs.86.10. The total traded quantity of the shares stood at 7.41 lakh shares on the BSE.