Tata Power Company on August 12 reported a consolidated profit of Rs 268.1 crore for the quarter ended June 2020, a 10.3 percent year on year increase driven by lower tax cost and exceptional gain.
Revenue from operations fell 16.9 percent year-on-year to Rs 6,453 crore in the first quarter of FY21.
The company earns most of its revenue from power generation and distribution segments, which showed weak performances.
Revenue from generation business declined 15 percent to Rs 3,303.16 crore, and transmission and distribution segment registered a 15.1 percent fall YoY at Rs 3,230.92 crore. Renewables business fell 12 percent to Rs 849.7 crore in June quarter YoY.
The company also has investments in joint ventures and associates involved in coal mining and providing engineering, procurement and construction services.
"Considering power supply being an essential service and lockdown restrictions being relaxed by the government, the management believes that there is not much of an impact likely due to this pandemic except that there exists some uncertainty over the impact of COVID-19 on future business performance of its coal mining companies and its EPC operations," Tata Power said in its BSE filing.
The management believes that the said uncertainty was unlikely to impact the recoverability of the carrying value its investment in such joint ventures and associates.
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