Tata Power net profit plunges 76% to Rs 72 crore

NEW DELHI : Tata Power's consolidated net profit tumbled by 76 per cent to Rs 72.49 crore for the quarter ended June 30, 2016 on account of one-time regulatory expense of Rs 272 crore and forex losses of Rs 160 crore. The company had posted a consolidated net profit after taxes, minority interest and share of profit of associates of Rs 303.14 crore in the year-ago period, Tata Power said in a filing to BSE. However, in a statement the company said "PAT stood at Rs 72 crore mainly due to one off items as well as first time impact on account of IndAS (Indian Accounting Standards)" "One-off items includes Rs 120 crore in CGPL (Coastal Gujarat Power Ltd) & regulatory orders pertaining to previous years of Rs 62 crore & IndAS related adjustments of Rs 130 crore," it said. The consolidated total income from operations (net) during April-June quarter was at Rs 6,838.30 crore, registering a decline of 4.8 per cent. Tata Power together with subsidiaries achieved generation of 11,122 million units (MUs) from all its power plants. On consolidated basis, Tata Power Group's revenue for AprilJune of this fiscal stood at Rs 6,566 crore, including regulatory income/expense, as compared to Rs 7,016 crore, including regulatory income/expense, last year, the statement said. "This is mainly because previous quarter had favourable ATE (Appellate Tribunal For Electricity) order impact in standalone for Rs 137 crore, whereas corresponding quarter has an adverse MERC (Maharashtra Electricity Regulatory Commission) order in Mumbai Transmission Business for standalone of Rs 62 crore and lower capacity revenue in CGPL," it said. Tata Power CEO & MD Anil Sardana said the company's focus on operational improvements have continued to show good results. "All our subsidiaries and plants have shown strong performance despite very challenging circumstances. We have grown our footprint and commissioned projects at South Africa & Zambia. "This quarter reflects changes in treatment of forex- mark-to-mark; interest on equity to CGPL and several items that have impacted PAT due to change to IndAS," he said. To strengthen the company's focus on sustainability, Tata Power has announced acquisition of renewable assets and also commissioned several non-fossil fuel based projects during the year, which is in line with its strategic intent, he said. "The company aims to pursue a well charted growth strategy by demonstrating a high level of commitment towards cleaner sources of generation thus increasing the share of non-fossil fuel based energy output to 30-40 per cent by 2025," he added. Tata Power together with its subsidiaries and jointly controlled entities has an installed gross generation capacity of 9432 MW and a presence in all the segments of the power sector including fuel security and logistics, generation (thermal, hydro, solar and wind), transmission, distribution and trading.