Tata Power’s Profit Nearly Halves In September Quarter

Tata Power Company Ltd.’s profit declined during the July-September quarter, missing analyst estimates.

The power producer and supplier’s net profit fell 45.2 percent year-on-year to Rs 234 crore, the company said in an exchange filing today. The was way below the Bloomberg consensus estimate of Rs 439.9 crore. The bottom line was impact by a one-time charge of Rs 152 crore include provisions for Docomo and Rithala plant, the company said in a separate media statement.

Revenue rose 6.2 percent to Rs 7,657 crore as compared to the same quarter last year, surpassing the Bloomberg consensus estimate of Rs 7,280.5 crore.

Earnings before interest, tax depreciation and amortisation rose 27.3 percent to Rs Rs 1,850 crore on a yearly basis while the operating margin expanded to 24.2 percent from 20.1 percent in that same period.

Segmental Performance

• Revenue from power business rose 2.9 percent to Rs 7,089.84 crore year-on-year.
• Revenue from other business such as defence electronics, solar equipments among others rose 23.4 percent year-on-year to Rs 631.35 crore.

The board has approved raising Rs 3,500 crore via non-convertible debentures, according to a separate exchange notification.

Shares of Tata Power rose as much as 4.3 percent to Rs 88.50 apiece, after the results announcement. The stock has returned 17 percent so far this year and a gain of 16 percent in the past 12 months.