Tata Power reports Rs198 cr Q3 net profit despite delays in Mundra UMPP tariff order

Tata Power has reported consolidated net (after-tax) profit of Rs198 crore for the third quarter of the current financial year ended 31 December 2014, compared to a loss of Rs75 crore in the quarter ended 31 December 2013.

Operating profit for the quarter stood at Rs970 crore compared to Rs1,121 crore in the year-ago quarter while consolidated revenue was marginally up 1 per cent at Rs8,807 compared to Rs8,700 crore in the previous year quarter.

This was mainly due to Coastal Gujarat Power Limited's (CGPL) higher availability coupled with higher generation and TPTCL's increase average rate realisation due to higher power purchase cost. The revenues were adversely impacted by lower price realisation from coal companies, Tata Power stated in a release. .

Delay in compensatory tariff for Mundra UMPP continues to be a concern, the company said.

Tata Power said lower price realisations by coal companies were partially offset by higher contribution from CGPL due to higher availability. The previous year the company had gained Rs185 crore in Mumbai operations (MO) from a favourable Appellate Tribunal For Electricity (ATE) order.

PAT improved and stood at Rs198 crore compared to Rs75 crore in Q3 FY14 contributed by forex gains of approximately Rs500 crore, including Rs410 crore due to VAT settlement in the coal companies; favourable impact of tariff order in MPL and CGPL's higher contribution due to higher availability coupled with higher generation. (Previous year had a favourable ATE order of Rs185 crore in MO business).

Segment-wise, revenues from power were up 10 per cent at Rs6,546 crore compared to Rs5,963 crore in the corresponding quarter last year, due to contribution by CGPL and TPTCL.

PBIT from power was up 5 per cent at Rs1,098 crore compared to Rs1,044 crore in the corresponding quarter, mainly contributed by CGPL and favourable tariff impact in Maithon.

Revenue from coal business stood at Rs2,104 crore compared to Rs2,568 crore in the corresponding period last year due to lower price realisation from coal companies. PBIT from coal business was up at Rs294 crore mainly due to forex gains on VAT settlement.

On a standalone basis, revenues were up 5 per cent at Rs2,109 crore against Rs2,008 crore in Q3 FY14, mainly due to better performance by Mumbai operations, higher fuel and power purchase cost.

Profit from operations stood at Rs360 crore compared to Rs563 crore in the corresponding quarter last year, mainly because of lower contribution from Trombay Unit 8, which is under restoration.

PAT stood at Rs235 crore compared to Rs251 crore, mainly due to increase in treasury income and forex gains.  The corresponding quarter last year had a favourable ATE order of Rs185 crore and thus is not comparable.

During the quarter, Tata Power signed a memorandum of understanding (MoU) with Russian Direct Investment Fund (RDIF) to explore investment opportunities in the Russian energy sector.

The private power utility also signed a share purchase agreement to acquire entire stake in Nagpur-based Ideal Energy Projects Limited.