Mumbai: Tata Power Co. Ltd on Tuesday reported higher-than-expected fiscal second-quarter profit, swinging from a year-earlier loss, after a board meeting presided over by ousted group chairman Cyrus P. Mistry.
Helped in part by lower finance costs, Tata Power Co. logged net profit of Rs336.24 crore in three months ended 30 September, compared with a loss of Rs95.87 crore a year ago. Net revenue in the quarter fell by 5.6% to Rs7,190.54 crore from Rs7618.35 crore a year ago, missing analysts’ estimate.
Thirteen analysts polled by Bloomberg had expected Tata Power to report a profit of Rs323.9 crore, while 11 analysts had expected net sales of Rs7,286.3 crore.
Tata Power said it will hold an extraordinary general meeting (EGM) on 26 December in Mumbai to pass a resolution for the removal of Mistry as a director of the company.
The firm’s board meeting on Tuesday was chaired by Tata Sons Ltd’s ousted chairman Mistry without any contest, people aware of the development said.
“Mistry chaired the Tata Power board meet, and there was no resolution brought up by directors for his removal,” said an independent director who attended the meeting, adding that there was no separate meeting of independent directors.
The director requested anonymity.
Tata Sons, the group holding company, has been seeking Mistry’s removal from various operating companies after sacking him as chairman on 24 October, in a move that triggered a bitter feud. Tata Sons requisitioned all seven group firms, including Tata Power in which Mistry is a director, to call for EGMs for his removal.
Mistry has been removed as the chairman from the boards of Tata Consultancy Services Ltd, Tata Global Beverages Ltd and Tata Steel Ltd.
Tata Power said Tuesday it had paid its share of Rs790 crore to Tata Sons in connection with NTT DoCoMo Inc. exercising its option to exit from its investment in Tata Teleservices Ltd.
Tata Sons lost a $1.17 billion arbitration case against NTT DoCoMo following which the Delhi high court ordered Tata Sons to deposit the amount in an escrow account.
Tata Power’s finance costs in the September quarter fell 23.7% to Rs724.27 crore from Rs949.03 crore a year earlier. Revenue from power, its largest business, shrunk 2.7% to Rs6,484.64 crore in the second quarter from Rs6,665.66 crore a year earlier. Revenue from “others” business also fell 1.7% to Rs511.46 crore, the firm said in a results filing to BSE.
On Tuesday, Tata Power’s shares fell 0.76% to Rs72.20 on BSE while benchmark index Sensex gained 0.17% to end the day at 26,394.01 points. The results were announced after market hours.