Analysts had expected the company to report a profit of R270 crore in the latest reported quarter. Tata Power, which is Indias largest private power company, said it recorded the impairment charge on review of the Mundra projects earning capacity compared with its cost.
The company eagerly awaits CERCs decision on PPA tariff revision for Mundra UMPP to address long term sustainability, Tata Power said in a media statement.
Total income from operations rose 36% to R9,039.31 crore, partly driven by additional revenue generated from Mundra and Maithon plants, as well as increased sales from its Delhi distribution business.
Revenue for its power business rose 64% to R6,403 crore, while its sales for the coal division slipped 9% to R2,464 crore. Tata Power Delhi Distribution, joint-venture with Delhi government, reported revenue of R1,300.24 crore, up 19% from last year. In distribution, profit after tax stood at R76.58 crore, up from R30.36 crore in the previous year.
The company, which has an installed generation capacity of nearly 7,700 MW, said sales volume for the quarter stood at 3,998 million units (MUs) versus 3,922 MUs last year, while gross generation fell 2% to 3,970 MUs.
Finance costs increased 72% to R740 crore, while fuel costs rose 53% to R2,696 crore.
Price realisations from the Indonesian coal companies are lower due to falling coal prices in the current quarter, however, the coal prices have stabilised in the recent weeks, managing director Anil Sardana said.
The companys Mundra plant, which is being implemented by Coastal Gujarat Power, runs on imported coal. The company last month commissioned a fourth 800 MW unit at the site. Rating agency Moodys downgraded Tata Power last year, saying it was breaching debt to equity covenants for its CGPL unit because of impairments resulting from coal price hikes and forex losses.
It is hoped that decision in respect of fuel prices is taken early and constant impact on Tata Powers networth is salvaged, Sardana said.
Tata Power, which has been hit by changes in regulations and laws in coal exporting countries such as Indonesia, South Africa and Indonesia, has been seeking waivers for the covenants. When Tata Power won the Mundra bid in 2007, it planned to secure fuel with investment in coal mines in Indonesia, but changes in tax laws in the southeast Asian country upset the companys plans. The companys share closed up marginally at R97.60 on Monday on the BSE.