Mumbai: India’s largest private sector electricity utility, Tata Power Co. Ltd, posted a 40.40% increase in net profit, riding on lower fuel and power purchase costs as coal prices fell in the three months to December.
Net profit rose to Rs141.89 crore in the third quarter from Rs101.06 crore in the same period in 2008. But revenue declined to Rs1,566.51 crore from Rs1,776.87 crore.
The company blamed the decline on changes in the fuel mix and a reduction in fuel prices in the Mumbai licence area compared with the same quarter last year.
Investors didn’t like the results and the stock lost 1.43% of its value to close at Rs1,420 a share in the last few minutes of trade after the quarterly results were announced.
Tata Power will add 318MW in generation capacity in 2010, followed by 1,138MW in 2011 and 1,600MW in 2012, it said in a statement.
The company has an installed capacity to produce 2,900MW of electricity.
Nidhi Agrawal, research analyst with brokerage Sharekhan Ltd, said though the results were below market expectations, the company is still better placed compared with its private sector peers. “The company’s (4,000MW) ultra mega power project is already 42% complete, which is much better than other companies,” she said.
“The first unit (of the plant) is expected to be commissioned by September 2011,” the company said.
Tata Power also said it was exploring opportunities to build solar energy plants to generate 300MW by 2013 under the Jawaharlal Nehru National Solar Mission.