Moneycontrol Bureau
Tata Power started off the financial year 2016-17 on a disappointing note as consolidated profit in April-June quarter fell sharply by 76.1 percent year-on-year to Rs 72.5 crore, impacted by one-time loss and lower other income.
Revenue also slipped 4.8 percent to Rs 6,838.3 crore during the quarter compared with Rs 7,183.7 crore in corresponding period of last fiscal.
Its revenue (including regulatory expenses) stood at Rs 6,566 crore compared with Rs 7,016 crore last year. "This is mainly because previous quarter had favorable ATE (Appellate Tribunal For Electricity) order impact in standalone for Rs 137 crore, whereas corresponding quarter has an adverse MERC order in Mumbai Transmission Business for standalone of Rs 62 crore and lower capacity revenue in CGPL," the Tata Group company said.
The power company reported regulatory expenses of Rs 272.12 crore for the quarter against regulatory expenses of Rs 224.02 crore & income of Rs 56.59 crore in same period last year.
The Tata Group company has reported one-time loss of Rs 312 crore during the quarter. "One-off items included Rs 120 crore in Coastal Gujarat Power (CGPL) & regulatory orders pertaining to previous years of Rs 62 crore and Indian accounting standards related adjustments of Rs 130 crore," the company said in its filing.
It further said most operations other than CGPL have done better and reported strong performance. Tata Power's Maithon Power, ItezhiTezhi Hydro Power Project(Zambia) and Coal & Infra companies reported higher profits of Rs 30 crore, Rs 69 crore and Rs 65 crore compared to corresponding quarter of last year, respectively.
The company achieved generation of 11,122 million units of power from all its plants in June quarter.
Earnings missed analysts' expectations. Profit was estimated at Rs 328 crore on revenue of Rs 9,250 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.
Earnings before interest, tax, depreciation and amortisation (EBITDA - operating profit) fell 11.3 percent year-on-year to Rs 1,635.5 crore and margin contracted by 180 basis points at 23.9 percent in the quarter ended June 2016.
Other income during the quarter declined 54.1 percent to Rs 112 crore on yearly basis. It reported forex loss of Rs 159.7 crore on consolidated basis in Q1 against loss of Rs 171 crore in corresponding period of last fiscal.
Tax expenses declined significantly to Rs 145 crore from Rs 226.7 crore on a YoY basis.
At 13:31 hours IST, the scrip of Tata Power Company was quoting at Rs 74.35, down Rs 2.90, or 3.75 percent amid high volumes on the BSE.
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