Tata Power has reported a dip in profits, largely due to a one-time tax impact.

In the September-ended quarter, the 100 year old utility posted profits of ₹350 crore, an almost 11 per cent dip when compared to the ₹393 crore it posted in the same period last year. Tata Power had a one-off tax impact of ₹158 crore, without which profit would have been ₹509 crore.

Also, finance costs was up by ₹1,129 crore when compared to ₹1,034 crore in the year-ago period, which partly affected profit.

Revenues for the September-ended quarter was ₹7,904 crore, an almost 6 per cent increase when compared to ₹7,458 crore posted in the year-ago period.

Praveer Sinha, CEO & Managing Director, Tata Power said: “We have performed well across all our businesses and operations and aim to stay focused on our key growth areas of renewable generation, Transmission and Distribution along with new value-added services such as Rooftop Solar, EV charging, home automation Micro Grids in rural areas.”

In Q2, Tata Power also had positives as power regulator APTEL upheld the approval granted for transfer of 75.01 per cent ownership of Prayagraj Power Generation Company Ltd (PPGCL) to Renascent Power Ventures, a 100 per cent subsidiary of Resurgent Power Ventures Pte Ltd, without any reduction of adopted tariff.

In the first half of FY20, consolidated EBITDA was ₹4,343 crore up by 23 per cent when compared to the year-ago period, mainly driven by lower losses in Mundra, capacity addition in renewables and better operational performance across all the businesses.

In the quarter Tata Power entered into collaboration with the Rockefeller Foundation to set up 10,000 micro grids through 2026, in addition to winning projects for building solar power plants such as the Solapur, Maharashtra for NTT-Netmagic.

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