Mumbai: Tata Power Co. Ltd on Tuesday reported a 76% fall in the first quarter net profit due to one-off items and the impact of adopting the new Indian Accounting Standards, sending its shares down as much as 4.4% in afternoon trading.
The power producer, which in June announced the acquisition of Welspun Renewables Energy Pvt. Ltd, said that one-off items during the quarter included Rs.120 crore related to subsidiary Coastal Gujrat Power Ltd (CGPL), Rs.62 crore on account of regulatory orders pertaining to previous years, and adjustments of Rs.130 crore related to the new accounting standards.
Net profit for the quarter ended 30 June fell to Rs.72.49 crore from Rs.303.14 crore a year ago, missing analysts’ estimates.
Total income from operations fell 4.8% to Rs.6,838.30 crore from Rs.7,183.67 crore a year ago.
Ten analysts polled by Bloomberg had expected Tata Power to report a consolidated net profit of Rs.336.90 crore, while 11 analysts had expected net sales of Rs.9,273.20 crore, for the first quarter.
The company had favourable Appellate Tribunal for Electricity (ATE) order in stand-alone revenue of Rs.137 crore in the previous year compared with an adverse Maharashtra Electricity Regulatory Commission (MERC) order in its Mumbai transmission business for stand-alone revenue of Rs.62 crore in the latest quarter, and lower capacity revenue in CGPL.
Revenue from power, its largest business, fell 5.7% to Rs.6,164.88 crore from Rs.6,537.27 crore a year earlier. Most other operations, excluding CGPL, have done better, Tata Power said.
In June, Tata Power agreed to acquire Welspun Renewables for Rs.9,249 crore in a bid to grow its clean energy portfolio to 2.3 gigawatts (GW). The deal is expected to be completed by the second quarter ending September.
“This quarter reflects changes in treatment of forex mark-to-mark; interest on equity in CGPL and several other items that have impacted PAT (profit after tax) due to change in INDAS (Indian Accounting Standards),” said Anil Sardana, chief executive, Tata Power.
During the quarter, Tata Power achieved generation of 11,122 million units across all its plants. Tata Power, across its subsidiaries, has an installed generation capacity of 9,184 MW.
Tata Power’s shares closed down 3.24% to Rs.74.75 each on the BSE.