Tata Power today reported more than four-folds increase in consolidated profit after tax at Rs 1,735 crore for the quarter ended on June 30, 2018, on the back of exceptional gain from the sale of investments.
The company had posted a consolidated profit of Rs 405.8 crore in the year-ago quarter, according to a regulatory filing.
"Consolidated PAT stood at Rs 1,735 crore, up by 328 per cent as compared to Rs 406 crore in Q1 FY19 due to all round performance and exceptional gain of Rs 1,483 crore (net of taxes)," Tata Power said in a statement.
Higher coal prices and adoption of IND-AS 115 among others impacted Coastal Gujarat Power Ltd (CGPL) profit as compared to the previous period, the statement said.
During the quarter ended on June 30, 2018, the company sold investments in Tata Communications Ltd and Panatone Finvest Ltd (associate companies), which were classified as assets held for sale in the previous year, Tata Power said.
"The resultant gain on sale of investments of Rs 1,897 crore has been disclosed as an exceptional income in the financial results," the filing said.
The consolidated income of the company in the April-June quarter this year increased to Rs 7,403.18 crore from Rs 6,559.4 crore in the year-ago period.
However, total expenses of the company on the consolidated basis increased to Rs 7,156.19 crore, over Rs 6,066.8 crore in the year-ago period.
Commenting on the company's performance, Praveer Sinha, CEO and Managing Director, Tata Power said, During the quarter, Tata Power has redesigned its organisation structure to focus on key identified growth areas like renewable generation, transmission, distribution and new and value-added businesses including rooftop solar, smart metering, micro grids in rural areas and setting up of electric vehicle charging units."
While the traditional business of thermal and hydro continues to perform well, Sinha said that the company believes that its future growth areas will bring in greater value and help it align with the consumer needs.
"The distributed generation business will be of great value to the end users as well as of the best of quality due of our domain expertise," he added.
At present, Sinha said, the company is working with the high powered committee to resolve the Mundra issue and expressed hopes that the resolution will benefit all stakeholders.
"During the quarter, all our businesses have done well. Renewable continues to be the higher contributor to the profitability of the company. Our PAT was impacted during the quarter due to change in Accounting standards, higher mining cost, change in Indonesian Regulations in coal companies and forex hit in CGPL. The company is committed to deleveraging the balance sheet by divesting the non-core assets," he added.
Tata Power partnered with Tata Motors to make Maharashtra EV ready and to establish Electric Vehicle Charging Stations in the State for public use.
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