Tata Power shares rally 9 per cent after Q1 result and on merger proposal
Published On: Thursday, August 13, 2020 | By: Team KnowMyStock
Tata Power shares surged as much as 9 per cent to Rs 57.9 on the BSE on Thursday after the firm reported a 10 per cent on-year rise in consolidated net profit at Rs 268 crore in the April-June quarter on the back of reduced expenses. The company had posted a net profit of Rs 243 crore in the corresponding quarter of the preceding year. Revenue from operations fell 16.9 per cent YoY to Rs 6,453 crore in the first quarter of FY21Its consolidated profit before tax (PBT) and exceptional items for the June quarter dipped 31 per cent to Rs 480 crore, as against Rs 605 crore PBT posted in Q1FY20.In a span of three months, Tata Power share price has rallied 114 per cent from Rs 27 apiece to Rs 57.85. The company also announced its three wholly-owned subsidiaries, Coastal Gujarat Power Ltd (CGPL), Tata Power Solar Systems (TPSSL) and Af-Taab Investment Company (Af-Taab) are proposed to be merged with the parent company for greater synergies in the financing, compliance, and oversight.
"Considering power supply being an essential service and lockdown restrictions being relaxed by the government, the management believes that there is not much of an impact likely due to this pandemic except that there exists some uncertainty over the impact of COVID-19 on future business performance of its coal mining companies and its EPC operations," Tata Power said in its BSE filing.
Source: Money Control, Business India, Financial Express
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