Tata Power profit drops 30%

Tata Power profit drops 30%

Mumbai: Tata Power Co. Ltd, the country’s largest independent power producer, posted a net profit of Rs661.54 crore in the March quarter, down 29.83% from the same period a year ago.

The company said the decline in profit was due to lower foreign exchange gains of Rs61 crore from wholly owned subsidiary Costal Gujarat Power Ltd also known as Mundra Ultra Mega Power Project (UMPP), as compared to Rs358 crore in the year ago quarter.

Tata Power’s total revenue for the quarter grew 4.1% to Rs4,985.84 crore from a year ago. Segment wise, net revenue from power and coal business grew by 3% and 14% to Rs3,196.86 crore and Rs1,714.18 crore, respectively.

“Tata Power had posted a mark-to-market gain on its external commercial borrowings (ECBs) in the base quarter," said a power sector analyst.

“The company now moves into the most interesting phase of its business with new capacity additions through our large projects – Maithon and Mundra ultra mega power projects that are nearing commissioning," said managing director Anil Sardana.

On a standalone basis, the company reported a 16% growth in fourth quarter net profit to Rs267.71 crore while revenue declined by 5.1% to Rs1,630.22 crore, said S. Ramkrishna, executive director and chief financial officer.

The board has recommended a dividend of Rs12.5 per share along with a stock split of each share into 10.

Tata Power closed at Rs1,217.25, falling 2.6% on the Bombay Stock Exchange on Thursday.