Lower profit from coal subsidiaries resulted in a massive fall of Tata Power’s consolidated net profit for the first quarter. Net profit fell 66 per cent to Rs 146 crore, compared to Rs 430 crore in the year-ago period.
“Coal companies had lower profit due to reduction in prices. China has stockpiled coal, and has stopped spot lifting of coal. Coal prices for intervening period are suppressed,” said Managing Director Anil Sardana.
The company has 30 per cent in two coal mines in Indonesia.
Higher interest and depreciation cost due to the commissioning of two units at the Mundra and Maithon projects, also contributed to the fall in profits. Besides, a change in multi-year rate regulations its Mumbai distribution business also impacted the company by Rs 155 crore. “We will take it up with the tribunal,” Sardana said.
Consolidated revenue went up by 24.5 per cent to Rs 7,254 crore, compared to Rs 5,824 crore in the corresponding quarter last year.
