Tata Power on Tuesday reported a 76% drop in its consolidated net profit for the April-June quarter, primarily due to changes in Indian Accounting Standards (IndAS), coupled with lower power production from its Gujarat-based 4,000-MW ultra mega power project (UMPP) due to maintenance and overhaul.
The company’s first-quarter consolidated net profit came in at R72.5 crore against R303.1 crore in the year-ago period, Tata Power said in a filing to BSE. The consolidated total income from operations for the quarter ended June 30 stood at R6,838.3 crore, a decline of 4.8% from a year ago period.
However, in a statement the company said, “PAT stood at R72 crore mainly due to one off items as well as first time impact on account of IndAS (Indian Accounting Standards)”. It added that one-off items included R120 crore in CGPL (Coastal Gujarat Power) and regulatory orders pertaining to previous years of R62 crore and IndAS related adjustments of R130 crore. Tata Power, together with subsidiaries, achieved generation of 11,122 million units (MUs) from all its power plants. However, the power generation from its UMPP was down nearly 14% to 5420 million units on account of low availability due to overhauls in the first quarter. The UMPP’s standalone profit after tax also declined by nearly 56% to R147 crore.
On consolidated basis, Tata Power’ operating income for April-June quarter came in at R6,566 crore, compared with R7,016 crore last year. The firm’s EBITDA declined nearly 25% to R1,316 crore.