Tata Power recorded a 40.7 per cent drop in consolidated net profit at Rs 262.6 crore, compared with Rs 442.3 crore in the year-ago period.
The company said the net profit was not comparable to year-ago period’s figure, as it had made provisioning of Rs 648 crore during the quarter for its coal subsidiary, Kaltim Prima Coal in Indonesia.
“In view of the uncertainty involved in estimating the average stripping ratio for the life of the coal mines at PT Kaltim Prima Coal, the entire deferred stripping costs accumulated in prior years was charged off to the profit and loss account,” Tata Power said in a press release.
The company’s revenue increased 51 per cent to Rs 6,645.8 crore from Rs 4,412 crore a year earlier. This was attributed to the robust performance in the power and coal businesses.