Shares of Tata Power snapped a 6-day fall

Tata Power Co Ltd., a supplier of power to Mumbai and Delhi, snapped a 6-day fall on Thursday after the company swung to a profit mainly on account of lower fuel costs.

Tata Power said its first quarter net profit stood at 241.3 crore rupees compared with a loss of 111.3 crore rupees in the same quarter a year ago. Sales during April-June were higher by 6 percent to 9,234 crores versus 8,707 crores, the company said in a release to the exchanges.

Tata Power said it enjoyed lower fuel costs to the extent of 2,141 crore rupees versus 2,586 crore rupees over the two comparative periods.

Tata Power rose 2.55 rupees, or 3.8 percent, to 70.10 rupees on the National Stock Exchange where 54 lakh shares changed hands compared with a 5-day average of 14.8 lakh shares by 1:50 pm.

Tata Power market capitalisation has gained 21 percent in one year to 18,400 crore rupees. The stock trades at 1.3 times its book value of 52 rupees.

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