 "Tata Power's arm acquires 30 MW solar project in Maharashtra")
Tata Power’s net profit for the June quarter declined 76 per cent to Rs 72.5 crore compared with Rs 303 crore in the year-ago period, impacted by one-time loss, lower other income and first-time impact on account of Indian Accounting Standards (IndAS). The company also missed the Bloomberg estimates of Rs 336 crore.
The firm had reported one-time loss of Rs 312 crore. “One-off items included Rs 120 crore in Coastal Gujarat Pvt Ltd, which runs the 4,000-Mw ultra mega power project at Mundra, and regulatory orders, pertaining to previous year of Rs 62 crore and IndAS-related adjustments of Rs 130 crore,” the company said.
Revenue also slipped 4.8 per cent to Rs 6,838 crore during the quarter against Rs 7,184 crore in the year-ago period.
Net revenues at Rs 6,838 crore were below Bloomberg estimates of Rs 9.273 crore. Tata Power stock on the BSE closed at Rs 74.74 down 3.24 per cent.
According to the company, most operations other than CGPL have done better and reported strong performance. MPL, Itezhi Tezhi Hydro Power Project (Zambia) and coal and infra companies reported higher profits of Rs 30 crore, Rs 69 crore and Rs 65 crore, respectively, compared to the corresponding quarter last year.
CGPL had a one-time cost of Rs 33 crore due dredging. It also had extra depreciation of Rs 30 crore due to impairment reversals.
“This quarter reflects changes in treatment of forex mark-to-market, interest on equity to CGPL and several items that have impacted PAT due to change to IndAs. To strengthen the company’s focus on sustainability, Tata Power has announced acquisition of renewable assets and also commissioned several non fossil fuel based projects during the year, which is line with its strategic intent. The company plans to increase the share of non-fossil fuel based energy output to 30-40 per cent by 2025,” said Anil Sardana, CEO and managing director of Tata Power.
