Tata Power shares fell over three percent in early trade on May 9, after the Tata group firm posted a consolidated net profit of Rs 1,045.59 crore for the fourth quarter.
The firm’s net profit grew 11.37 percent from the year-ago period, driven by a strong performance of its core thermal coal generation business.
However, the thermal generation (including coal) cluster saw a sharp 58 percent year-on-year drop in profit after tax (PAT), primarily on account of losses of Rs 43 crore, said Kotak Institutional Equities.
As of 11:45 am, the shares were trading 2.52% lower at ₹424.10 on the National Stock Exchange (NSE).
While Tata Power’s consolidated net profit for the fourth quarter showed an 11.37 percent increase compared to the previous year, driven by the strong performance of its core thermal coal generation business, the thermal generation cluster, including coal, witnessed a significant 58 percent year-on-year drop in PAT.
This drop was primarily attributable to losses of Rs 43 crore, as pointed out by Kotak Institutional Equities. Consequently, Tata Power shares fell over three percent in early trade on May 9, reflecting investors’ response to the mixed financial results.
