Tata Power beats estimates, posts Rs 159 cr profit in Q4

Lower coal price, higher profit from Mumbai operations boosts result

Tata Power reported a consolidated net profit of Rs 159 crore in the fourth quarter of 2015 financial year on the back of lower expenses against Rs 145-crore loss in the same period last year.

On a standalone basis, the company posted a profit of Rs 213 crore (Rs 84 crore in Q4 2014) which was higher than Street expectation. Bloomberg had estimated a stand-alone profit of Rs 203 crore.

The company announced a dividend of Rs 1.30 per share. Consolidated income fell 7.4 per cent to Rs 8,240 crore on account of lower price realisation by the group's coal mining companies but the decline was offset by 12 per cent drop in expenses.

Consolidated operating profit for the quarter was 28 per cent higher at Rs 1,408 crore against Rs 1,097 crore in the same period last year due to lower depreciation, higher contribution from the company's Mumbai operations (which reported 28 per cent growth in operating profit) and lower coal prices in the Mundra ultra-mega power plant.

The sharpest decline in expense was seen in coal processing charges (48 per cent) and royalty towards coal mining (27 per cent). Also, the company spent less on purchase of power, fuel, raw materials. Depreciation charges were lower by Rs 110 crore on account of changes in policy.

“The company has significantly improved its profitability in the fourth quarter of FY15 and for the year 2014-15. All units have consistently maintained strong operational performance across our business verticals, despite very challenging circumstances. We have grown our footprints and ventured into many projects in the international market,” Tata Power chief executive officer Anil Sardana said in a statement. The scrip closed at Rs 75.85 on Tuesday.