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Updated: 30/10/2009 | 12:00 AM IST
Tata Power drops after poor quarterly earnings
Capital Market
Friday, October 30, 2009 (New Delhi)
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Tata Power Company fell 1.47% to Rs 1384 at 10:09 IST on BSE, after net profit declined 30.1% to Rs 183.19 crore in Q2 September 2009 over Q2 September 2008.

Meanwhile, the BSE Sensex was up 244.86 points, or 1.53%, to 16,297.58.

On BSE, 9,177 shares were traded in the counter as against an average daily volume of 74,972 shares in the past one quarter.

The stock hit a high of Rs 1410 and a low of Rs 1350 so far during the day. The stock had hit a 52-week high of Rs 1487 on 26 October 2009 and a 52-week low of Rs 591 on 29 October 2008.

Ahead of Q2 September 2009 results, the stock rose 0.48% to Rs 1407.70 on 29 October 2009. Earlier, the stock had dropped 4.32% in three trading sessions to Rs 1397.95 on 28 October 2009 from a recent high of Rs 1461.10 on 23 October 2009.

The large-cap stock had outperformed the market over the past one month till 29 October 2009, rising 7.46% as compared to the Sensex's 4.75% fall. It had also outperformed the market in the past one quarter, gaining 7.85% as compared to the Sensex's return of 5.79%.

The company's equity capital is Rs 237.09 crore. Face value per share is Rs 10.

The current price of Rs 1384 discounts the company's Q2 September 2009 annualized EPS of Rs 30.90, by a PE multiple of 44.79.

Tata Power's total income fell 16.33% to Rs 1796.60 crore in Q2 September 2009 over Q2 September 2008. The company announced the results after market hours on Thursday, 29 October 2009.

During the quarter ended September 2009, the company earned a foreign exchange gain of Rs 3.09 crore.

As per recent reports Tata Power, which is already generating 2,768 megawatts (MW) electricity, will invest Rs 21,600 crore by 2012 to add an additional capacity of around 5,300 MW by 2012. According to the existing projects, under consideration and implementation, the company will have a generating capacity of 12,000 MW by 2014.

Tata Power Company had in July 2009 raised $335 million from an issue of global depository receipts (GDR). The company said a strong investor response enabled the company to raise GDR issue size to $335 million from $250 million. The GDR was priced at $22.577 each.

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.

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