Mumbai: Improved performance by its renewables business and a one-time reversal of a write-off on its Mundra power plant led Tata Power to report 751% recovery in headline net profit for the January-March quarter .

Net profit for the March quarter rose to Rs1,478 crore, against a loss of Rs227 crore in the year-ago period.

Tata Power made a reversal of Rs1,886.72 crore on the impairment charges it had previously made on the struggling Mundra ultra mega power project.

For the full year, the company reported consolidated net profit of Rs2,679 crore against Rs1,099 crore in FY17.

The Mundra plant reported its highest ever losses of Rs489 crore in the quarter due to 25% higher coal prices. However, this was partly offset by higher profits for related ventures in coal.

The company’s clean energy portfolio grew to 3,417 MW as compared to 3,141 MW last year. Tata Power’s city distribution business in Delhi reduced AT&C losses to 8.40% as against 8.59% for the same period last year. Total generation crossed 53,500 MUs (million units) for the first time in FY18.

Praveer Sinha, CEO and MD at Tata Power, said in a statement: “Tata Power Solar has shown excellent performance and turnaround and has been a significant contributor to company’s robust performance. The renewable portfolio continues to do well and has once again made a healthy contribution to PAT. Moreover, the company has been working on charting its next phase of growth for which monetization of various non-core assets like the strategic engineering division and other cross holdings is underway to improve the balance sheet."

Shares of Tata Power closed down 1.36% at Rs86.95 on the BSE on Wednesday.