Tata Power Group has made a turnaround by reporting a consolidated net profit of Rs. 75 crore for the second quarter ended September 30, 2013, as compared to a net loss of Rs. 84 crore in the same period last year.
The company’s consolidated revenue stood at Rs. 8,764.69 crore up 14 per cent against Rs. 7,699.77 crore in the same period last year. The consolidated profit from operations was up 39 per cent at Rs. 1,341.64 crore, the company said.
On a standalone basis, Tata Power reported a lower net profit of Rs. 261.77 crore as compared to Rs. 295.98 crore in the same period last year, down 12 per cent. The net profit was down mainly due to lower interest and dividend income and forex loss during the quarter, the company said. Revenue was lower at Rs. 2,199.52 crore against Rs. 2,519.80 crore in the same period last year mainly due to lower demand leading to lower fuel cost and generation in Mumbai.
“In the second quarter, the company reported a revenue growth of 14 per cent driven by operations of all the units of Mundra and Maithon. All our projects and subsidiaries have performed well. However, we continue to be pressurized by higher forex losses,” said Anil Sardana, Managing Director, Tata Power.
“On the Mundra UMPP tariff revision front, we have continued to honour our commitment towards the nation’s energy security by providing reliable and competitive power supply through the project. This has put immense pressure on our bottom line and no company can afford to continue to incur such heavy losses. We are eagerly awaiting quicker resolution of this issue,” Mr Sardana said.
“We are happy with the start of construction of the first phase of the hydro project in Georgia which puts us in a strong position to pursue our commitment to sustainability. We have further augmented our wind generation capacity in line with our commitment towards generating 20-25 per cent of energy from clean sources,” he added.
The company said it continued its ‘robust’ operations and performed ‘well’ despite a ‘volatile macro environment’. Sales volume for the quarter stood at 3,762 million units and the overall generation was 3,404 million units (MU). Tata Power shares closed with a gain of 1.09 per cent at Rs 78.70 on the BSE.
