Tata Power swung to a quarterly profit after posting losses for four quarters as it recorded forex gains of Rs 421 crore against forex losses in the previous quarter and in the year-ago period.
Significantly, the company started accounting for compensatory tariff, which is stuck in litigation in the Appellate Tribunal for Electricity (APTEL). For the quarter ended December 31, Tata Power recorded revenue of Rs 220 crore.
The second-largest private power producer posted a consolidated net profit of Rs 198 crore, compared with a loss of Rs 75 crore in the corresponding quarter in FY14. Net revenue rose marginally to Rs 8,754 crore. The profit was also helped by an increase in profit of its subsidiary, Coastal Gujarat Power, which operates the ultra mega power plant located in Mundra, and profits from its power trading subsidiary owing to higher power purchase costs. Mundra reported generation of 7298 MUs compared to 5554 MUs in corresponding quarter last year.