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Tata Power's first quarter loss declined 3 percent over the same period last fiscal, despite a fall in revenue and an increase in interest cost. Net loss for Q1 FY15 stood at Rs 111.30 crore against Rs 114.70 crore in Q1 of the previous fiscal.
Revenue fell from Rs 9,340 crore to Rs 8,766 crore and profit from operations too was down due to outage in one of units of Trombay power plant, lower contribution from wind energy business and coal companies. Standalone power business contributes about a quarter of company's consoldiated topline and it reported 13 percent lower revenue and 28 percent drop in profit in this quarter.
Tata Power continues to grapple with high debt and its consolidated loan book doubled in last five years. Last month, it signed an agreement to sell its five percent stake in a coal mine in Indonesia for around $250 million, the second such transaction this year, to retire debt.
In February, the Central Electricity Regulatory Commission (CERC) allowed Tata Power to levy additional compensatory tariff upto Rs 329 crore to offset the high cost of imported coal in its Mundra plant.
In its statement Tata Power said compensatory tariff for Mundra plant was not accounted in this quarter. Inclusion would have led to rise in profit by Rs 225 crore. Also, a one-time deferred tax of Rs 113.78 crore has been accounted for on account of depreciation.
Anil Sardana, CEO & Managing Director, Tata Power said, “During the first quarter of FY15, the Company reported robust operational performance by its businesses and subsidiaries. We are delighted to update that we commissioned yet another large solar project of 25 MW in Palaswadi, Maharashtra. We have achieved a significant presence of 1,206 MW installed capacity in the clean energy space which is in line with the government's vision to strengthen the renewable energy sector.
"Mumbai distribution business is also growing at a rapid pace with more than 5 lakh consumers. Tata Power is awaiting the renewal of distribution license due in this month," he added.
