Tata Power limited; an Indian electric utility company based in Mumbai, Maharashtra saw its share price rallying 114 percent from Rs.27 a piece to Rs.57.85. The company’s consolidated net profit grew by 10% to Rs.268 crores for the quarter ended June against a net profit of Rs.243 crores during the same period a year ago, on the back of lower finance cost. Tata Power share price soared over 9 percent to hit day’s high of Rs.57.85 apiece on BSE (Bombay Stock Exchange), a day after the company clocked a 10 percent on-year rise in consolidated net profit at Rs.268 crores in the April-June quarter.
In Another update, Tata Power announced that its three wholly owned subsidiaries, Coastal Gujarat Power Limited (CGPL), Tata Power Solar systems (TPSSL) and Af-Taab Investment Company (Af-Taab) are proposed to be merged with the parent company. The company said that the merger aims to achieve long-term objectives by facilitating efficient use of cash and making available corporate support to the businesses of the said wholly-owned subsidiaries as needed.
This Merger, subject to necessary approvals, is a part of strategic initiative to simplify the group holding structure and a broader plan to set the company for future growth through fiscal consolidation and strengthening of the balance sheet.
The Tata Power share price opened with a gain of 3.87% at Rs.55 and later climbed 9.25% to the intraday high of Rs.57.85 on the BSE, as against the earlier closing of Rs.52.90. The stock also touched an intraday low of Rs.52.65 during Friday’s session. The stock price of Tata Power has jumped 13% in one week and 13.51% in one month. Tata Power shares trade higher than 5,20,50,100 and 200-day moving Averages.
During the quarter ending June 30th, Tata power maintained stable performance despite lower profits from solar EPC Businesses mainly on account of lower financing cost and stable performance across all the clusters. The company won new renewables bids totaling 220 MW. The sale of Ships completed at $212.76 million. Solar EPC (engineering, procurement, and construction) order book stood at Rs.8700 crore including GST. The company also reported strong cash generation due to strong collection and tighter control over working capital.
