Tata Power swings into Rs 198 cr profit in Q3

Total income of the company during the third quarter rose to Rs 8,806 cr from Rs 8,700 cr in the same period last year

Riding high on the other income, Tata Power reported a Rs 198-crore consolidated net profit in the quarter of this financial year. It had reported a Rs 75-crore loss last year. The total income during the quarter rose to Rs 8,806 crore from Rs 8,700 crore last year due to the increased availability of the Mundra power plant and power trading business. Excluding other operating income, the net revenue at Rs 8,754 crore (up one per cent year-on-year) fell three per cent short of Bloomberg estimates.  

Expenses were up 3.3 per cent to Rs 7,836 crore from Rs 7,579 crore but the higher costs were offset by gains from hedging in foreign currency loan, treasury income and coal dividend income. The company reported other income of Rs 515 crore due to a Rs 421 crore gain on account of exchange rate fluctuation. In the year ago period, it had reported a loss of Rs 160 crore on account of exchange rate fluctuation, leading to other income coming at negative Rs 94 crore.

Tata Power’s managing director Anil Sardana said, “During the third quarter, Tata Power has improved profitability and consistently maintained strong operational performance across our business verticals. Most of our projects and subsidiaries continue to perform well despite very challenging circumstances. We have entered into a share-purchase agreement to acquire 100 per cent shareholding in Ideal Energy Projects Limited (IEPL), a 540 MW domestic coal-based thermal power project near Bela village in the Nagpur district of Maharashtra.”