Tata Power has reported a consolidated net loss of Rs 246.9 crore in the quarter ended March 31, mainly due to a payment for "exceptional item" under a contractual obligation for DoCoMo share buy back.
Had the company not been impacted due to share buy back of DoCoMo of Rs 651 crore, the company would have reported a profit of Rs 389 crore in the January-March quarter this year, a Tata Power official explained in a statement on its financial results.
The company had reported a profit of Rs 82.95 crore in the year-ago quarter, Tata Power BSE filing said.
According to the statement, the company has deposited Rs 790 crore to Tata Sons, as part of its share of contractual obligation.
Consequently, it said that the company has as of March 31, 2017, written off other advances of Rs 651.45 crore, being the difference between the fair value of equity share of Tata Teleservices Limited and the consideration payable to DoCoMo deposited with Tata Sons. This has been disclosed as exceptional item.
The company further said that the balance of Rs 138.55 crore, which represents the fair value of shares receivable from DoCoMo based on a valuation as at September 30, 2016, is being carried forward as other advance and included in other non-current financial asset.
Its total income stood at Rs 7,392.95 crore in the fourth quarter, down from Rs 7,434.10 crore a year ago.
However, its consolidated net profit in 2016-17 is Rs 948.56 crore up from Rs 786.39 crore in the previous fiscal.
Total income in 2016-17 was Rs 28,099.94 crore down from Rs 29,592.23 crore in 2015-16.
Apart from approving the financial results, Tata Power board has recommended a dividend of Rs 1.30 per equity share of Re 1 each (@ 130%) to the shareholders for the year ended March 31, 2017, in its meeting held today.
The Annual General Meeting (AGM) of the company is scheduled to be held on August 23, 2017 in Mumbai.
The dividend, if declared at the AGM, will be paid on and from August 24, 2017 to the shareholders, it said.
Commenting on the company's performance, Anil Sardana, CEO & Managing Director, Tata Power said, "The company's relentless focus on operational improvements have shown great results. We have grown our footprint and added 1427 MW through various projects nationally and internationally. Renewables continue to be one of our key focus areas, as is evident in our recent acquisition of solar assets. The renewable energy business made a healthy contribution to PAT this year.
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