Tata Power swings to profit, posts net at Rs 74.97 crore

Written by Agencies | Updated: Nov 15 2013, 10:45am hrs
The countrys largest private electricity producer, Tata Power, on Thursday posted a net profit of R74.97 crore for the quarter ended September. The company had reported a net loss of R83.8 crore in the corresponding period of the previous fiscal, when it made a provision of R250 crore, Tata Power said in a filing to the stock exchanges.

Total income increased 14% to R8,764.69 crore due to operations of all units at its Mundra and Maithon plants, the utility said.

The company had made an impairment provision of R250 crore for future cash flows at its Mundra plant due to fuel costs, exchange rate variation and other operating costs. On a standalone basis, the companys net profit fell 11.55% to R261.77 crore, while total income decreased to R2,245.83 crore from R2,716.06 crore a year earlier. Tata Power shares gained 1.09% to R78.70 at the close on the BSE.

The company posted net profit, which was lower-than-expected, despite the high cost of imported coal and populist tariff regimes eating into its margins.

The company has looked to shrug off a worsening economic climate at home to expand its operations overseas with projects in South Africa, Georgia and Southeast Asia.

But its flagship Mundra plant in Gujarat is bleeding as it is forced to sell power at a loss. The losses from the Mundra plant prompted Tata to consider selling some investments to reduce its debt. It has also put on hold any major expansion plans.