Shares of Tata Power, the country's largest private electricity producer, gained as much as 1.5 per cent in the morning trade on Bombay Stock Exchange (BSE) after the company announced it has posted the net profit of Rs 75 crore in second quarter ended September 2013 as against a net loss of Rs 83.8 crore in the year ago period.
At 10:00 hours, shares of the company were trading at Rs 79.65 a piece, up 1.14 per cent from previous close on BSE. Total income increased 14 per cent to Rs 8,764.69 crore in Q2 FY'14 from Rs 7,699.77 crore in Q2 FY'13, helped by operations of all units at its Mundra and Maithon plants.
The bottomline also boosted as company made no provision for impairment during September quarter as against Rs 250 crore in the corresponding quarter of last fiscal. Meanwhile, the forex loss of Tata Power increased to Rs 354.5 crore in the reporting quarter as against Rs 31.6 crore in a year ago period.
"The management has reassessed the recoverability of the carrying amount of the assets at Mundra considering the fuel cost, exchange rate variation and other operating costs that would impact future cash flows and has concluded that no further provision for impairment loss for the half-year ended September 2013 in CGPL," the company said in its release.
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