Tata Power Q3 net plummets over 87% to Rs75 crore

Tata Power, one of India's largest integrated power companies in the private sector, has reported consolidated net (after-tax) profit of Rs74.91crore for the third quarter of the current financial year, compared to a net profit of Rs328.92 crore for the similar quarter of the previous financial year.

Consolidated revenues for the quarter stood lower at Rs8,700.02 crore due to provisions relating to exceptional expenditures towards settlement of mining rates, mine rehabilitation costs, forex losses and tax demands in Arutmin coal mines, the company said in a regulatory filing on Friday.

Consolidated profit for the April-December period of the current financial year improved to Rs114.64 crore while consolidated operating profit for the period was up 23 per cent at Rs3,879.53 crore. Previous year had an impairment provision of Rs850 crore.

Tata Power had reported consolidated revenues of Rs9,039.31 crore in the corresponding quarter of the previous financial year.

Nine months consolidated revenues were up 12 per cent at Rs26,804.20 crore.

After-tax (net) profit for Q2 of 2013-14 was up 16 per cent at Rs251.13 crore, mainly due to favourable ATE order in Mumbai licence area. Standalone profit from operation was up 27 per cent at Rs563.41 crore.

Standalone revenue for the third quarter of the 2013-14 financial year stood at Rs2,007.92 crore.

For the nine months ended December 2013, standalone net profit of the company was up 5 per cent at Rs869.90 crore. Profit from operation for the period was up 57 per cent at Rs1,632.99 crore.

Standalone revenues for the nine months ended 31 December 2013 stood at Rs6,814.95 crore.

The company said lower fuel and power purchase cost in Mumbai operations and TPDDL has been offset by increase in revenue in Mundra and Maithon plants due to full operation and higher sales in Tata Power Solar Systems Ltd.

Previous year net profit included provision for impairment of Rs600 crore in Mundra.

Profit from operations stood at Rs1,120.95.crore compared to Rs1,268.93 crore in Q3-FY14. Profit for the quarter was impacted by lower realisation of coal prices, provisions relating to settlement of mining rates, mine rehabilitation costs and tax demands in Arutmin coal mines, it added.

On a consolidated segment-wise basis, revenues for the quarter in the power business was down 8 per cent at Rs5,962.78 crore compared to Rs6,462.53 crore in the corresponding quarter last year, mainly due to lower fuel prices and power purchase costs.

Revenue from the coal business was marginally up at Rs2,567.55 crore compared to Rs2,476.85 crore in Q3 FY13.

PBIT from the power business was up at Rs1,043.78 crore against Rs844.81 crore in the corresponding quarter last year, due to continuing strong operational performance and regulatory orders in Mumbai operations and better capacity utilisation at Maithon Plant.

During the quarter, price realisations and margins were lower from the coal business due to continuing depressed international coal prices in addition to certain onetime provisions at Arutmin mines.

Consequently, PBIT from coal business stood at Rs16.89 crore compared to Rs444.49 crore reported in the corresponding quarter.

Tata Power is India's one of the largest integrated power company with a significant international presence.

The company has an installed generation capacity of 8521 MW in India and a presence in all the segments of the power sector, viz fuel and logistics, generation (thermal, hydro, solar and wind), transmission, distribution and trading.