Hit by higher finance costs and forex losses, Tata Power on Tuesday posted a consolidated net loss of R114.7 crore during the April-June quarter, against a profit of R145.9 crore in the year-ago period.

During the period the company?s forex losses due to a weaker rupee stood at R292.76 crore. Total income from operations rose 29% to R9,339.5 crore from R7,254 crore in the year ago quarter, while cost of fuel increased 32% to about R2,790 crore. Finance costs surged 64% to R902 crore.

Tata Power?s unit, Coastal Gujarat Power (CGPL), which operates the 4,000 MW Mundra ultra mega power project (UMPP), reported a nearly five-fold increase in revenue at R1,359.40 crore during the period, compared with R285.07 crore in the same period last year, due to commissioning of all units.

However, the Mundra plant, which relies on imported fuel, reported a net loss of R548.84 crore, compared with a loss of R164.78 crore last year, primarily on account of forex liabilities due to a weaker rupee. The weak results sent the stock crashing 15% to close down at R71.35 on Tuesday on the BSE.

Tata Power has been seeking a hike in power tariffs at its flagship Mundra plant, which has been facing mounting losses and debts due to an increase in fuel costs after Indonesia changed its laws to link coal prices to international benchmarks. It has also been seeking waivers from lenders on certain covenants at its CGPL unit.

Tata Power and Adani Power received a major boost earlier this year, when they were awarded ?compensatory? tariffs by the Central Electricity Regulatory Commission (CERC) to account for the increases in fuel costs. However, there is no clarity on when the quantum of the tariff will be finalised as a committee has been formed by the CERC to evaluate the matter. Analysts expect the decision on the tariff hike to be a long-drawn out affair, considering the weak financial health of the country?s state electricity boards (SEBs).

?This decision of the CERC is an important step in resolving the major impasse affecting imported coal based power projects. Meanwhile, CGPL is honouring its commitment and hopes for quicker resolution of the issues as the pain is making it tougher to operate,? managing director Anil Sardana said in a media statement.