Moneycontrol Bureau
Tata Power's first quarter earnings beat analysts' expectations on every front Thursday. It turned profitable during the quarter, reporting net at Rs 241.3 crore against loss of Rs 111.3 crore in same quarter last year.
"This was due to strong operational performance by Mumbai operations & positive impact of truing up of past years regulatory income, in addition to higher contribution by Coastal Gujarat Power. However, this is offset by provision for certain investments," the company reasoned.
Revenue jumped 6 percent year-on-year to Rs 9,234.6 crore compared to Rs 8,707.5 crore during the quarter, driven by higher revenue in Tata Power Trading Company, Tata Power Solar and Mumbai operations which is offset by lower fuel cost in Mumbai operations, said the company in its filing.
According to average of estimates of analysts polled by CNBC-TV18, profit was estimated at Rs 203 crore on revenue of Rs 8,637 crore for the quarter.
Operating profit (earnings before interest, tax, depreciation and amortisation) jumped 31 percent year-on-year to Rs 2,181 crore and margin expanded by 450 basis points to 23.6 percent in June quarter, supported by power business. Analysts had expected operating profit of Rs 1,876 crore and margin of 21.7 percent for the quarter.
Power business revenue rose by 3.6 percent to Rs 6,803 crore in Q1 with EBIT (earnings before interest and tax) showing 43.4 percent increase while coal business declined 4.1 percent to Rs 2,005.5 crore with EBIT falling 68.8 percent.
"With an operating base of 8669 megawatts as of June 30, 2015, the company’s distribution business has crossed 2 million connected customers, 14 lakh in Delhi and 6 lakh in Mumbai," said Anil Sardana, CEO & Managing Director.
Consolidated forex loss for the quarter was Rs 52.8 crore against loss of Rs 136.7 crore in the same quarter last year. Other income shot up 84 percent to Rs 158.3 crore from Rs 86 crore during the same period. At 13:41 hours IST, the scrip of Tata Power Company was quoting at Rs 70, up Rs 2.45, or 3.63 percent on the Bombay Stock Exchange.Posted by Sunil Shankar Matkar
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
