Private power producer Tata Power on Wednesday reported a net profit of Rs 6.11 billion, witnessing a marginal decline in profit on a year on year basis. Even as expenses for the company rose higher than revenue from operations, the company gained from deferred tax benefits.
For the October-December 2017 quarter, the company reported a net profit of Rs 6.11 billion attributable to the owners of the company, with a one percent decline from Rs 6.19 billion reported in the same quarter a year ago. Total expenses for the quarter under review rose 9% to Rs 71.83 billion, from Rs 66.03 billion reported in the same period a year ago. Revenue from operations, at the same time, rose 6% to Rs 69.49 billion against Rs 65.74 billion in the corresponding quarter last year.
The company also reported deferred tax to the extent of Rs 2.72 billion on indexation benefit, available on certain investments that have been classified as an asset held for sale.
Tata Power, in its statement, also said it has started the process for disposal of its Strategic Engineering Division subject to requisite approvals. On its planned sale of shared in PT Artumin mine in Indonesia, the company said the deal has not been concluded pending requisite consent and approvals.
The deal was valued at Rs 25.61 billion. For its Mundra Ultra Mega Power Project (UMPP), the company said it continues to hold discussions with its procurers for alternative solutions to minimize operating losses. The alternatives, the company said, includes offering 51% stake in the subsidiary for a nominal value to the procurers.