Tata Power posts quarterly loss on higher costs

NEW DELHI (Reuters) - Tata Power Co Ltd reported a net loss of 1.45 billion rupees ($24.6 million) in the quarter ended March, after a rise in operating costs at its mega Mundra power plant.

Tata Power, part of India's salt-to-steel Tata conglomerate, reported a net profit of 1.81 billion rupees a year earlier.

The company said in a statement late on Thursday that the 4,000 megawatt Mundra plant, which has suffered from higher coal costs during the past year, was now fully operational.

The company got a boost in February after the power regulator said it could raise tariffs for electricity from the Mundra plant.

 

Consolidated revenue in the fourth quarter ended March rose 8 percent to Rs 35,649 crore from 33,025 crore last year.

The company also recommended a 125 percent hike in dividend to 1.25 rupees per share to reflect the potential boost to future earnings from the regulator's decision.

(Reporting by Tommy Wilkes; Editing by Prateek Chatterjee)