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In spite of a dip in income from operations, Tata Power has reported a 38 per cent increase in net profit for the quarter ended December 31, 2016. Higher profit has been clocked due to reduction in cost of purchased power, dip in raw material consumption and lower tax expenses.
The company for the quarter under consideration reported ₹599 crore as net profit, which in the year ago quarter was ₹433 crore. Improved performance by key Indian subsidiaries and coal companies also helped the company reach higher net profit.
The total income from operation for the quarter stood at ₹6,683 crore (₹7,353 crore).
For the quarter, the cost of purchased power dipped by 19 per cent to ₹1,696 crore (₹ 2,103 crore). Tax expense also almost halved to ₹70 crore (₹147 crore).
In a press statement, Anil Sardana, CEO and Managing Director, said that during the quarter Tata Power has improved profitability and has maintained strong operational performance across all business verticals. With a gross installed generation capacity of 10,496 MW, the company continues to be India’s largest integrated power player as also largest green generator. The subsidiaries continue to perform well, despite challenging business environment, he said.
The company in a BSE statement said that it has paid ₹790 crore to Tata Sons, which is the parent company of Tata Group, in connection with the ongoing legal tussle between NTT DocCoMo and Tata Teleservcie Ltd (TTSL). Tata Power is a shareholder in TTSL.
In a related development, the board on Friday has appointed N Chandrasekaran as the Chairman and Additional Director of the company, effective from Saturday. Chandrasekaran is the Chairman designate of Tata Sons and currently the CEO and Managing Director of Tata Consultancy Services.
The appointment of Chandrasekaran was passed at a Tata Power board meeting held today in Mumbai.
He is currently the Chairman of Tata Steel and Tata Motors. He is also director of Indian Hotels Company Ltd and the Reserve Bank of India, the statement said.
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