Markets
BSE See NSE See 26,743.05
48.77 (0.18%)
collapse Related Readings collapse

Tata Power Interview

By Shrikant Akolkar | 2/20/2013 3:22 PM Wednesday

Tata Power, in a conversation with DSIJ, throws light on its Q3 performance and the company’s view on the power sector.

How do you read the December 2012 quarter results of Tata Power? Did they meet the management’s expectations?

Tata Power Company: Tata Power delivered a strong Q3FY13 and YTD operational performance. The company recorded increased operating profits and a growth in revenues. The consolidated Q3 revenues crossed Rs 9000 crore, while the YTD revenues were up by 28% at Rs 23993 crore.

How has the coal price movement in the international market been during the quarter? What should we expect going ahead?

Tata Power Company: The coal prices were stable for this quarter. They are influenced by a number of external factors that are difficult to predict. We generally rely on market experts for their views.

The gas-based plants have continued to face problems during this quarter. GAIL, however, has started operations from its LNG terminal in Dabhol. It is expected that this terminal will improve the gas supply to the adjacent states. What is your view on this?

Tata Power Company: The LNG terminal is expected to improve the receiving capacity of imported gas, which would increase the inflow to southern states. Gas-based power generation, however, remains expensive compared to coal-based generation.

On the gas front again, it is expected that the gas prices will increase in 2014 (Reliance Industries will be allowed to hike the gas prices). Since you are also operating a few gas- based plants, have you started factoring this hike in your projections? As for the gas-based plants, will the margins decline further or will this gas hike be a pass through?

Tata Power Company: Tata Power’s gas-based production capacity is very limited. If the gas prices increase, the cost of fuel may go up too. However, Tata Power’s Mumbai operations are on a regulated basis and hence, there won’t be any impact on profitability. With a shortage of gas in the country, we see a limited gas-based capacity addition in the coming future.

The government has continued with its power sector reforms. After SEB debt restructuring and FDI in power trading, it has now announced the coal price pooling policy. How will that help the sector? Also, the new policy will increase the coal prices for domestic coal consumers, pressuring their margins. What is the management’s take on this?

Tata Power Company: Coal price pooling will help the power sector by ensuring higher fuel supplies, reliable fuel availability and easing the demand-supply mismatch in the country. Domestic coal consumers are currently meeting deficits through coal imports, buying coal at spot prices or by operating at sub-optimal capacity. We are awaiting details regarding its implementation and would be able to comment on it thereafter.

Tata Power is also expecting a tariff hike in its Mundra project. The developments there would be very important for the power sector, especially for the power generating companies consuming the imported coal. Can you share the progress made so far?

Tata Power Company: The matter is sub judice before the CERC. The Commission has heard all the parties in the dispute and the next steps in the hearing are expected.

Find More Articles on: Markets, DSIJ Mindshare, Quarterly Results, Q3 Earnings

DSIJ
Mindshare

Ten stocks close to their 52-week low

Ten stocks close to their 52-week low

Following stocks are close to their 52-week low as at 12.15 p.m. on December 9.

Beneficiaries of the cashless mantra trade higher on bourses

Beneficiaries of the cashless mantra trade higher on bourses

There are a host of stocks which are likely to benefit from the governments' big Digital push. These stocks have already seen a big run-up, post demonetisation. However, more upside is left in the stocks.

Ten stocks close to their 52-week high

Ten stocks close to their 52-week high

The markets on December 9 opened up. BSE Sensex is trading at 26779.11, up by 84.83 points and the Nifty is trading at 8266.65, up by 19.80 points. Meanwhile, following stocks are close to their 52 week high as on December 9.

Banco Products runs low after rollback of buyback

Banco Products runs low after rollback of buyback

Banco Products’ board of directors have decided to drop the proposal of buyback of equity shares of the company and decided not to further proceed with the proposal.

Quarterly Result: Jindal Steel & Power Ltd

Quarterly Result: Jindal Steel & Power Ltd

Jindal Steel & Power Ltd., is currently trading at Rs. 73.95, up by 0.85 points or 1.16% from its earlier closing of Rs. 73.1 on the BSE. The company's net loss for the quarter stands at Rs 745.98 cr against Rs 909.53 cr.

Markets @ 11 am: Movers and Shockers

Markets @ 11 am: Movers and Shockers

Following are the top gainers and losers as of December 9. Intellect Design is the largest gainer; whereas MMTC is the largest loser. 

IL&FS Engineering & Construction Company shines on bagging REC order

IL&FS Engineering & Construction Company shines on bagging REC order

IL&FS Engineering & Construction Company (IL&FS ECC) has emerged as the lowest bidder for Rural Electrification Corporation (REC) works worth Rs 225 crore crore in Jharkhand. 

Sheela Foams IPO lists at a premium of 39%

Sheela Foams IPO lists at a premium of 39%

Maker of India’s most loved mattresses brand ‘Sleepwell’ has listed with a massive premium of close to 39 per cent on the bourses. The Rs 510-crore initial public offer was oversubscribed 5.09 times on December 1, the last day for subscription. The issue was opened on November 29.

Tanla Solutions hits new 52-week high

Tanla Solutions hits new 52-week high

Tanla Solutions has hit new 52-week high on December 9. The scrips are witnessing high volume with thirty day SMA of 40.85. The shares of the company which previously closed at Rs 49.95; opened at Rs 51.50 and as at 9.52 am are trading at Rs 57.35, up by 14.81 per cent.

Stock in focus: KPR Mill

Stock in focus: KPR Mill

KPR Mill, which had earlier proposed a buy-back has finally got approval from its board. The scrip of KPR Mill by default is expected to spice up. 

Market
CHIT CHAT

What is your view on markets today?

200  Characters Remaining.
Please LOGIN  to post your comments or Click here to go back.
Shubham Maheshwari Dec 09 12:58PM
Buy ugar sugar work for short term profit
MANISH TYAGI Dec 09 12:54PM
@rajiv Nice timing, swing on tara
VINAY HEGDE Dec 09 12:49PM
PASSWORD iA9u1LVE
rajiv jha Dec 09 12:44PM
Elnet tech for short term
rajiv jha Dec 09 12:43PM
Pincon spirit also good for long term

news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »