Tata Power posts loss of ₹246.90 cr in fourth quarter
MUMBAI: Tata Power Co. Ltd on Friday posted a loss for the fourth quarter, against a profit a year earlier, hurt by one-time charges related to contractual obligations.
The power producer reported a consolidated net loss of ₹246.90 crore for the quarter ended 31 March, compared with a consolidated net profit of ₹82.95 crore a year earlier.
Revenue from operations fell 1.8% to ₹7,166.79 crore from ₹7,297.74 crore due to lower power purchase and fuel costs, Tata Power said in a statement.
Thirteen analysts polled by Bloomberg expected Tata Power to report a consolidated net profit of ₹472.4 crore while 14 analysts expected revenue of ₹8,121.8 crore.
Tata Power, which faced a setback last month after the Supreme Court set aside a tribunal ruling that allowed power producers to charge compensatory tariff from consumers, said following the court order, it has “intensified its efforts to contain costs by alternate sourcing of coal and other initiatives to reduce cost”.
Revenue at the company’s largest power business fell 12.3% to ₹5,975.13 crore during the quarter, from ₹6,815.32 crore a year earlier. Other business revenue rose 90.8% to ₹1,471.36 crore from ₹771.17 crore a year earlier. Total expenses rose 0.8% to ₹7,287.22 crore.
For the full year, Tata Power’s consolidated net profit rose 20.6% to ₹948.56 crore, while revenue from operations fell 5.4% to ₹27,897.72 crore.
Generation crossed 52,000 million units for the first time during FY17, said the company, which has added about 1,427 megawatt (MW) of capacity this year.
Together with its subsidiaries, Tata Power operates a gross generation capacity of 10,613 MW.
“Renewables continue to be one of our key focus areas… The renewable energy business made a healthy contribution to PAT (profit after tax) this year,” chief executive Anil Sardana said in the statement.
Tata Power last year announced the acquisition of clean energy company Welspun Renewables Energy Pvt. Ltd in a ₹9,249 crore deal.
Tata Power’s shares closed up 0.60% at ₹84.20 a share on the BSE on Friday.