The second largest private utility Tata Power today said its consolidated net plunged a whopping 87.6 per cent to Rs 24.46 crore in the three months to December due to an exceptional loss of Rs 187.15 crore arising from falling global coal prices.
The company had reported consolidated net profit of Rs 197.74 crore in the year-ago period.
The company in a statement said, “net profit before exceptional items stood at Rs 212 crore (Rs 24 crore after exceptional items) compared to Rs 198 crore in Q3 of FY15.
Exceptional items include adjustments of Rs 187 crore for assets impairment and goodwill due to falling international coal prices.”
Consolidated income increased to Rs 9,329.27 crore from Rs 8,528.40 crore. Income from the core power business declined to Rs 6,450 crore from Rs 6,600 crore driven down mostly by falling international coal prices.
“Revenue from coal business declined to Rs 1,922 crore from Rs 2,104 crore due to lower price realisation from coal companies. However profit from this business stood at Rs 237 crore,” the statement said.
“Exceptional items (net) of Rs 187.15 crore during the quarter and nine months ending December comprise of impairment of goodwill in Indonesian companies of Rs 2,507.15 crore..and reversal of impairment loss in Coastal Gujarat Power of Rs 2,320 crore,” the filing said.
The release further said “profit from operations (after adjustment for regulatory income) rose 29 per cent at Rs 1,253 crore mainly due to all round strong operational performance and strong asset management.”
Commenting on the performance, managing director and chief executive Anil Sardana said, “despite a tough market environment, we could improve profitability and maintain strong operational performance across our business verticals during the reporting quarter.”
He said the company continued to expand and strengthen its global presence and noted that it commissioned a 120-mw hydel project in Zambia, and synchronized a 67.5-mw plant at Kalinganagar in Odisha.
During the quarter the company has also inked a memorandum of understanding with the ministry of development of Russian Far East to explore and develop investment opportunities in the energy sector.
Tata Power and its subsidiaries have an installed gross generation capacity of 9036 mw and is present in all the segments of the power sector–generation, transmission, distribution and trading.