Tata Power Q2 profit falls 45% on one-time charges
Mumbai: Tata Power Co. Ltd on Friday reported a 45% drop in September quarter net profit because of one-off charges amounting to Rs152 crore.
Consolidated net profit fell to Rs386 crore from Rs427 crore (before the one-off impact) in the year-ago period, the company said in a statement to the BSE.
The one-off charges were provisions made for its stake in Tata Teleservices Ltd and the Rithala power plant in Delhi. The Tata group recently paid $1.29 billion awarded to former Tata Teleservices partner NTT DoCoMo Inc. by an arbitration court.
Consolidated revenue rose to Rs7,393 crore in the quarter from Rs7,285 crore in the corresponding period last year, it added.
The company said its board had approved a proposal to issue non-convertible debentures of up to Rs3,500 crore on a private placement basis in one or more portions.
In the quarter, its renewable power business’s profit jumped twofold to Rs173 crore from Rs86 crore in the year-ago period, led by profit from acquisitions.
“During the quarter, the company reported robust operational efficiency and performance in spite of a difficult business environment... We are confident that our strong growth trajectory will continue into the next quarter,” said Anil Sardana, chief executive officer and managing director, in a statement.
Tata Power shares fell 0.24% to Rs84.55 at the close of trading on BSE on a day the benchmark Sensex gained 0.33% to 33,685.56 points.
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