A foreign exchange gain of ₹421 crore helped Tata Power Co Ltd post a net profit of ₹198 crore for the December quarter against a net loss of ₹75 crore in the corresponding period last year.

Total income was marginally up at ₹8,807 crore, compared to ₹8,700 crore a year ago.

Revenue from the power business rose 10 per cent to ₹6,546 crore (₹5,963 crore), while coal business revenue was down 18 per cent to ₹2,104 crore(₹2,568 crore).

Operational profit was at ₹970 crore, mainly due to lower price realisation by coal companies and partially offset by higher contribution from Coastal Gujarat Power Ltd, a subsidiary, the company said.

The previous year had a favourable Appellate Tribunal order of ₹185 crore relating to Mumbai operations.

“During the third quarter, Tata Power has improved profitability and consistently maintained strong operational performance across our business verticals. Most of our projects and subsidiaries continue to perform well despite very challenging circumstances,” said Anil Sardana, CEO and MD.

The net profit improved on account of forex gains of about ₹500 crore, including ₹410 crore due to a VAT settlement with coal companies.

The favourable impact of a tariff order on Maithon Power (in Jharkhand) as well as Coastal Gujarat Power’s higher generation also helped the company report profit.

The Mundra plant in Gujarat posted an operating income of ₹1,616 crore (₹1,311 crore).

Net loss reduced to ₹243 crore, from ₹318 crore.

“This quarter, we have entered into a share purchase agreement to acquire 100 per cent shareholding in Ideal Energy Projects Ltd, a 540 MW domestic coal-based thermal power project near Bela in the Nagpur(Maharashtra),” said the CEO.

On Wednesday, the company’s scrip closed 3.32 per cent higher at ₹90.20 on the BSE.

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