Tata Power today posted a consolidated loss of Rs 78 crore for the September quarter as the company was impacted by lower revenues from coal business, among other factors.
The leading power producer had a consolidated profit after tax of Rs 75 crore in the July-September quarter of last fiscal.
On a standalone basis, the company's the profit after tax in the second quarter of the current fiscal rose to Rs 306 crore from Rs 262 crore in the year-ago period.
Its revenue on consolidated basis fell to Rs 8,394 crore from Rs 8,765 crore in the year-ago period. This was due to lower realisation by coal companies, and lower fuel cost in Mumbai operations, Tata Power said in a statement.
The company's bottom line was hit mainly "due to lower coal prices impacting profitability of coal mines".
However, it added: "All other operations have performed well. The company has also made provision for certain expenses pertaining to coal mines following deallocation of coal mines by the Supreme Court."
According to the company, the Q2 revenue from coal business was Rs 2,079 crore, compared to Rs 2,324 crore in the corresponding period last year.
Despite falling global coal prices, losses in coal companies have been minimised by prudent cost control measures, it added.
Meanwhile, the loss of CGPL narrowed to Rs 274 crore in the latest September quarter. It was at Rs 297 crore in the same period a year ago.
Coastal Gujarat Power Ltd (CGPL) is operating the 4,000 MW Mundra ultra mega power project, which is facing tariff issues in the wake of changes in pricing norms for Indonesian coal. The plant, located in Gujarat, is fired by coal imported from Indonesia.
Tata Power CEO and Managing Director Anil Sardana said that in the second quarter, the company reported robust operational performance by its businesses maximising shareholder value.
"We await and are hopeful of a quick resolution of India's fuel issues including the unprecedented rise of imported coal prices and issues around domestic coal," he said.
