A unit of the Tata group, Tata Power has reported a consolidated net loss of Rs 1,218.86 crore in the second quarter o the financial year. The company had reported a consolidated net profit of Rs 672.54 crore in the second quarter of 2010.

The reasons for the huge looses incurred in the quarter were provisioning of Rs 1,461.96 crore for impairment charges and losses in the foreign exchange market. The company said that its profitability was also affected by a differential cost of Rs 50.39 crore in linked to its 1,050-MW project in Maithon.

Tata Power Managing Director Anil Sardana said, "The 4,000-MW Mundra UMPP and the 1,050-MW Maithon Power Project are in advanced stages of completion. We are also on track on all our other projects, which are under implementation."

The shares of the company fell 7.46 per cent to Rs 93 on the Bombay Stock Exchange while the shares fell 7.94 per cent to Rs 93.30 on the National Stock Exchange in the early trade. The shares rose somewhat and were trading at Rs 96.50 on the BSE and at Rs 96.60 on the NSE at the time of reporting.