Tata Power Q1 Net Profit Jumps Four-Fold to Rs 1,735 Cr

Consolidated revenue rose by 16 percent at Rs 7,139 crore as compared to Rs 6,166 crore last year.

Country’s one of the leading integrated power company, Tata Power has reported a four-fold jump in its consolidated net profit after tax at Rs 1735 crore during the first quarter of FY19, helped by exceptional gain from the sale of investments.

It had posted a consolidated net profit of Rs 406 crore in the same period a year ago, the company said.

The company said in a statement that, “Consolidated PAT stood at Rs 1,735 crore up by 328 percent as compared to Rs 406 crore in Q1 FY19 due to all round performance and exceptional gain of Rs 1,483 crore (net of taxes).”

During the June quarter, its consolidated revenue rose by 16 percent at Rs 7,139 crore as compared to Rs 6,166 crore last year. This is mainly due to higher generation at CGPL, TPDDL, commencement of Ajmer Distribution operations, coupled with higher generation in Renewable business, Tata power said in a regulatory filing.

It further added that, higher coal prices, MTM loss and adoption of IND-AS 115 impacted CGPL profit as compared to previous period.

Also, coal companies performance impacted due to change in the Indonesian regulations for Domestic Market Obligations (DMO) and higher mining costs.

Commenting on the company’s performance, Tata Power, CEO & Managing Director, Praveer Sinha said, “During the quarter, Tata Power has redesigned its organization structure to focus on key identified growth areas like renewable generation, transmission, distribution and new & value-added businesses including rooftop solar, smart metering, micro grids in rural areas and setting up of electric vehicle charging units. While the traditional business of thermal and hydro continues to perform well, we believe our future growth areas will bring in greater value and help us align with the consumer needs. The distributed generation business will be of great value to the end users as well as of the best of quality due of our domain expertise.”

“At Present, we are working with the High Powered Committee to resolve the Mundra issue and we hope that the resolution will benefit all stakeholders. During the quarter, all our businesses have done well. Renewable continues to be the higher contributor to the profitability of the company. Our PAT was impacted during the quarter due to change in Accounting standards, higher mining cost, change in Indonesian Regulations in coal companies and forex hit in CGPL. The company is committed to deleveraging the balance sheet by divesting the non-core assets,” he added.