The company reviewed provisions for impairment of its investments in CGPL, coal mines and other investments leading to provision of Rs 4,330 crore during the quarter in standalone results.
Tata Power today reported a consolidated net profit of Rs 1,477.5 crore in the quarter ended March 2018 on account of all-round good performance, mainly coal business and renewables. The company had reported a consolidated net loss of Rs 226.93 crore in the quarter ended March 31, 2017, a company statement said. Its total income rose to Rs 7,959.34 crore in the quarter under review, from Rs 7,167.69 crore a year ago. For the full fiscal 2017-18, the company’s consolidated net profit stood at Rs 2,679.11 crore, against Rs 1,099.63 crore in the previous fiscal year. Total income for the fiscal was Rs 29,763.91 crore as compared to Rs 28,173.49 crore in 2016-17. Besides approving the financial results, its board in a meeting held today also recommended a dividend of Rs 1.30 per equity share of Rs 1 each to the shareholders for the year ended March 31, 2018.
The company’s operating profit for the March quarter rose 18 per cent to Rs 1,445 crore as compared to Rs 1,221 crore a year ago mainly due to renewable business and all round good performance of all businesses, it said. It said that exceptional items of Rs 1,103 crore contributed to the higher profits and the CGPL (Mundra UMPP) posted its highest ever losses due to 25 per cent higher coal prices but it was offset by higher profits at coal companies. Its clean energy portfolio grew to 3,417 MW as compared to 3,141 MW last year. In 2018, Tata Power’s consumer base crossed 2.6 million mark across the country and its power generation crossed 53,500 MUs (million units) for the first time in FY’2018. The company reviewed provisions for impairment of its investments in CGPL, coal mines and other investments leading to provision of Rs 4,330 crore during the quarter in standalone results.
However, at a consolidated level this gets offset and net gains of Rs 1,245 crore has been recognised. Its standalone power generation for the quarter stood at 12,237 MUs. Mundra plant reported generation of 26,686 MUs. Maithon plant reported 7,406 MUs. Trombay Thermal Power Station generated 6,294 MUs. Jojobera Thermal Power Station generated 2,978 MUs and Haldia reported generation of 775 MUs. Industrial Energy Limited reported generation of 2,592 MUs, TPREL (Tata Power Renewable) generated 919 MUs through clean sources of energy (solar and wind) and WREL generated 1,688 MUs. Praveer Sinha, CEO and managing director, Tata Power, said in the statement, “Tata Power Solar has shown excellent performance and turnaround and has been a significant contributor to company’s robust performance. The renewable portfolio continues to do well and has once again made a healthy contribution to PAT (profit after tax).”
He further said,” The company has been working on charting its next phase of growth for which monetisation of various non-core assets like SED and other cross holdings is underway to improve the balance sheet. “We are committed to pursuing a well charted growth strategy by demonstrating a high level of commitment towards cleaner sources of generation. While the CGPL’s under recovery for the quarter and full year has been offset by gains in coal mines to some extent but tangible steps need to be taken by procurers to resolve the viability issue at the earliest.”