Tata Power reports PAT lower owing to low coal profits

Tata Power, India's largest integrated power company with an installed capacity of 10,857 MW, on Monday reported a consolidated profit after tax of Rs 205 crore for the December quarter.

The performance was lower from Rs 628 crore in the same period of previous year due to lower profits from coal business.

However, revenue for the quarter stood at Rs 7,571 crore, up by 16 per cent from Rs 6,506 crore. The company's renewable segment EBITDA was higher at Rs 511 crore in Q3 FY19 as compared to Rs 471 crore in Q3 FY18.

"All our businesses continue to perform well," said Praveer Sinha, CEO and Managing Director of Tata Power. "Our renewable business has added 356 MW over previous year and have a healthy order book of 1,255 MW" he said.

The company has launched residential solar rooftops in Mumbai, New Delhi, Ajmer, Bhubaneshwar and Bangalore. However, profit after tax is adversely affected due to coal companies profitability that is under pressure due to domestic market pricing obligation and increase in fuel prices.