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Updated: 26/06/2009 | 12:00 AM IST
Tata Power strengthens on overseas initiative
Capital Market
Friday, June 26, 2009 (New Delhi)
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The company made this announcement after trading hours on Thursday, 25 June 2009.

Meanwhile, the BSE Sensex was up 73.74 points, or 0.51%, 14,419.36.

On BSE, 9,731 shares were traded in the counter. The stock had an average daily volume of 1.14 lakh shares in the past one quarter.

The stock hit a high of Rs 1183 and a low of Rs 1152 so far during the day. The stock hit a 52-week high of Rs 1225 on 12 June 2009 and a 52-week low of Rs 531.50 on 27 October 2008.

The large-cap stock had outperformed the market over the past one month till 25 June 2009, rising 7.22% as compared to the Sensex's return of 3.11%. It had also outperformed the market in the past one quarter, gaining 55.91% as compared to the Sensex's return of 48.38%.

The company's current equity is Rs 221.73 crore. Face value per share is Rs 10.

The current price of Rs 1158.90 discounts the company's Q4 March 2009 annualized EPS of Rs 64.06, by a PE multiple of 18.09.

The proposed plant in Netherlands will be ready in 2013 and partly replace the existing power supply agreement with another utility, Tata Power said. This power plant will use most of the excess production of gases of Corus' IJmuiden facility to produce steam and power. The power plant will enable Corus IJmuiden works to secure its own long-term steam and power needs.

Meanwhile, Tata Power Company, which supplies 500 megawatts (MW) of power to the Anil Dhirubhai Ambani group company Reliance Infrastructure's distribution area in Mumbai, has decided to discontinue the supply from 1 April 2010.

Tata Power Company's net profit rose 57.6% to Rs 354.64 crore on a 19.9% decline in sales to Rs 1309.64 crore in Q4 March 2009 over Q4 March 2008.

On a consolidated basis, the net profit rose 27% to Rs 1264.04 crore on a 67% rise in total income to Rs 17529.48 crore in the year ended March 2009 over the year ended March 2008.

Tata Power Company generates and supplies electricity in Mumbai and its suburbs. The company also constructs and operates independent power plants as well as captive power plants for industrial concerns. Tata Power also provides various services related to electricity distribution, erects and commissions transmission lines.

Promoters of the company have pledged 3.23 crore shares of 14.59% equity. The total promoter holding in the company is 33.26% (as on 31 March 2009).

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