Tata Power Q1 Profit Tanks 76% on One-Time Loss

Tata Power began the financial year 2016–17 on a sad note as consolidated profit in April-June quarter slumped by 76.1 per cent year-on-year (YoY) to Rs.72.5 crores, affected by one-time loss and lower other income. The company’s revenue slipped by 4.8 per cent to Rs.6,838.3 crores during the quarter as compared to Rs.7,183.7 crores in the corresponding period of last fiscal.

Its revenue, including regulatory expenses, stood at Rs.6,566 crores as compared to Rs.7,016 crores last year. The Tata Group company said that this is majorly because previous quarter had favourable ATE — Appellate Tribunal For Electricity order impact in standalone for Rs.137 crores, while the corresponding quarter has an adverse Maharashtra Electricity Regulatory Commission (MERC) order in Mumbai Transmission Business for standalone of Rs.62 crores and lower capacity revenue in CGPL.

Tata Power reported regulatory expenses of Rs.272.12 crores for the quarter against regulatory expenses of Rs.224.02 crores & income of Rs.56.59 crores in the same period last year. The power company has posted one-time loss of Rs.312 crores during the quarter.

Despite the dip in profit, Tata Power share price was trading 0.94 per cent higher at Rs.75.50 on NSE today. It opened at Rs.74.05 from a previous closing of Rs.74.80.

Tata Power achieved generation of 11,122 million units of power from all its plants in the June quarter. Profit was estimated by analysts at Rs.328 crores on revenue of Rs.9,250 crores for the quarter. However, it missed the estimates.

EBITDA — operating profit slumped 11.3 per cent year-on-year (YoY) to Rs.1,635.5 crores and margin contracted by 180 basis points at 23.9 per cent in the June quarter. Other income during the June quarter declined 54.1 percent to Rs.12 crores on yearly basis.

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