The country's largest private electricity producer, Tata Power, today reported that its net loss narrowed to Rs 75 crore in the October-December quarter after discontinuing a provision related to its plant at Mundra made a year earlier.
The company had reported a loss of Rs 329 crore in the year-ago period, Tata Power said in a stock exchange filing.
Earnings were also affected by lower realisation of coal prices, provisions related to settlement of mining rates, mine rehabilitation costs and tax demands in the Arutmin coal mines in Indonesia, the company said.
Finance costs rose and foreign-exchange losses widened in the three months ended December 31.
The utility had set aside Rs 600 crore as an impairment charge related to its Mundra plant a year earlier.
Tata Power said the management had reassessed the recoverability of the carrying amount of the assets at Mundra, considering the fuel cost, exchange rate variation and other operating costs that would impact future cash flows.
The management concluded that no further provision for impairment loss is needed on this account, according to the statement.
Total income from operations declined to Rs 8,700 crore from Rs 9,039.31 crore. The cost of fuel decreased to Rs 2,307 crore from Rs 2,696 crore.
Finance costs climbed to Rs 875 crore from Rs 741.8 crore a year earlier. Tata Power reported foreign exchange losses widened to Rs 159.69 crore in the quarter from Rs 86.03 crore in the corresponding quarter of the previous financial year.
Last week, Tata Power signed an agreement to sell its 30 per cent stake in Indonesian coal mining firm PT Arutmin for USD 500 million to cut debt and boost cash flows.
The company hasn't been able to pass on higher coal costs to consumers of electricity generated at the 4,000-MW plant at Mundra. The utility is waiting for a decision by the regulator on its request to increase power tariffs.
Tata Power continues to hold its equity stake in PT Kaltim Prima Coal, which owns one of the largest thermal coal producing mines in the world.
On a standalone basis, Tata Power posted a profit of Rs 251.13 crore in the quarter, compared with Rs 216.38 crore a year earlier. Total income decreased to Rs 1,998.59 crore from Rs 2,580.93 crore.
Tata Power shares declined 0.33 per cent to Rs 75 at the close on the BSE.
