Tata Power Net Falls 66% To Rs 146 Crore

The Sensex participant and top private sector power utility, Tata Power has reported 66% fall in its net profit to Rs 146 crore in its consolidated financials for the June quarter. The top line during this quarter witnessed a robust 24% rise to Rs 7254 crore.

The increase in the top line was due to the higher coal volumes as well as higher power generation from its power plants. Company has also seen the generation from Mundra UMPP and Maithon power plant which got commissioned towards the end of the last fiscal. The realizations from its merchant plants were down 9% on YoY basis.

The drop in the net profit was due to the increase in the fuel expenses, employee benefit expenses, rupee depreciation etc. The interest expenses also rose by whooping 77% due the rupee depreciation as well due to the commissioning of the Maithon and Mundra UMPP.

Though the revenues from coal business and power business increased there is drop in the margins in both the businesses which has dragged the financial permanence of the firm.

We expect the shares of the company to open negative and remain under pressure whole day.