New Delhi/Mumbai: India’s biggest electricity generator outside state control, Tata Power Co. Ltd reported an 82% decline in group profit after writing off deferred expenses from its coal mines in Indonesia.
Net income, including that of units, fell to Rs92.5 crore in the three months ended 31 December 2009, from Rs505 crore a year earlier, the company said in a statement to the Bombay Stock Exchange on Thursday.
Total income slipped to Rs4,340 crore from Rs4,621 crore in the year-ago period.
The estimates of carrying amount of deferred stripping costs recorded in current and previous periods/years has resulted in a charge of Rs350.89 crore during the quarter, executive director (finance) S. Ramakrishnan said.
A revision of the mine stripping ratio, which is related to long-term estimates of coal extraction costs, forced the company to write down past mining expenses in the quarter, he said.
Other factors included the strengthening of the rupee, which reduced repatriated profits, and a decline in coal prices, Ramakrishnan said.
For the nine months ended 31 December, the company posted a consolidated lower net profit at Rs1,032.95 crore, against Rs1,252.94 crore for the same period in the previous financial year.
Total income for the nine months stood at Rs13,632.78 crore, against Rs13,328.22.52 crore in the year-ago period.
The Tata Power group includes the company’s mining assets in Indonesia and local distribution and trading units. Tata Power holds 30% stakes in two Indonesian coal mines owned by PT Bumi Resources.
PTI contributed to this story.