Tata Power Files Rs 221-Crore Insurance Claim For Damages In Fire Incident At Trombay Plant

Tata Power Co. has submitted an insurance claim of approximately Rs 221 crore for the damages incurred in a fire at the cable vault and the control room of the Trombay plant last month.

The claim is currently being evaluated by the insurer. An initial advance of Rs 50 crore has been released, while the final settlement will be determined once the assessment is complete, according to an exchange filing on Wednesday.

The preliminary evaluation suggests damages of around Rs 221 crore, not including business interruption costs, which will depend on how long operations are halted, it said.

The fire incident is not expected to materially affect production, services, or the company's financial status, as the damages are covered under the insurance claim, it said.

Tata Power reported a 7% rise in its consolidated net profit in the second quarter of the current financial year, beating analysts' estimates.

The Mumbai-based company posted a profit of Rs 1,093 crore for the three months ended September. That compares with the Rs 1,052-crore consensus estimate of analysts tracked by Bloomberg.

Revenue declined 3% to Rs 15,698 crore. Analysts tracked by Bloomberg had a consensus estimate of Rs 16,957 crore.

Its earnings before interest, tax, depreciation and aromatisation was up 21% to Rs 3,745 crore for the second quarter of the current fiscal, while its margin expanded to 23.9% as against 19.6%.

Shares of Tata Power closed 0.38% higher at Rs 427 apiece on the National Stock Exchange, compared to a 0.51% fall in the benchmark Nifty 50. The stock has risen 78.59% in the last 12 months and 28.56% on a year-to-date basis.

Out of the 23 analysts tracking the company, 14 have a 'buy' rating on the stock, one recommends 'hold' and eight suggest 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price target implies a potential upside of 2.7%.