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Tata Power has posted a consolidated net loss of Rs 75 crore for the December quarter, which truncated from Rs 329 crore in the same quarter last year. This is because in the year-ago quarter, the company had taken an impairment charge of Rs 600 crore on its books on account of the Mundra ultra mega power project (UMPP).
The company also made exceptional expenditure at its coal mines in Indonesia, which went up by Rs 152 crore. The total other expenses swelled 29 per cent. “Exceptional expenditures were made towards settlement of mining rates, mine rehabilitation costs, forex losses and tax demands in Arutmin coal mines,” the company said in a release.
In the quarter under review, Tata Power’s revenues decreased by four per cent to Rs 8,700 crore compared to Rs 9,039 crore in the year-ago quarter. “This is driven by lower fuel and power purchase cost in Mumbai (distribution) operations and Delhi distribution business, which is offset by an increase in revenue in Mundra and Maithon Plants due to full operation and higher sales in Tata Power Solar Systems,” the company said in a statement.
The company also made exceptional expenditure at its coal mines in Indonesia, which went up by Rs 152 crore. The total other expenses swelled 29 per cent. “Exceptional expenditures were made towards settlement of mining rates, mine rehabilitation costs, forex losses and tax demands in Arutmin coal mines,” the company said in a release.
In the quarter under review, Tata Power’s revenues decreased by four per cent to Rs 8,700 crore compared to Rs 9,039 crore in the year-ago quarter. “This is driven by lower fuel and power purchase cost in Mumbai (distribution) operations and Delhi distribution business, which is offset by an increase in revenue in Mundra and Maithon Plants due to full operation and higher sales in Tata Power Solar Systems,” the company said in a statement.
As much as Rs 7,000 crore is hanging on the company's books as 'regulatory asset', which is the amount of money that the company is yet to recover from power distribution. This money can be earned only when the state power regulators give a go-ahead to increase tariffs of consumers.
The central power regulator, CERC, too has been delaying a decision on letting the company increase power sale price at its 4,000 megawatt Mundra power plant. “Delay in Mundra tariff revision continues to severely impact profits and net worth,” the company said. It had been seeking a tariff increase to pass on the increased coal costs from importing from Indonesia, to the power procurers. They sought this relaxation after the country changed its laws that increased the fuel costs manifold.
The profit from operations for the quarter too fell by 11.7% to Rs 1,121 crore due to lower realisation of coal coal prices from the mines its owns in Indonesia. It had also made provisions relating to settlement of mining rates, mine rehabilitation costs and tax demands in Arutmin coal mines. The stake that Tata owns in Arutmin coal mines, however, are being sold off to the Bakhrie family, owners of Bumi Resources that owns majority stake in the mines.
