Mumbai, Jan 28 (IANS) Tata Power on Monday reported 67.42 per cent plunge in consolidated net profit for the third quarter ending in December at Rs 204.61 crore mainly caused by lower profits from its coal business and higher losses due to fuel under-recovery from its Mundra plant.
In a statement here, Tata Power said it had posted a profit after tax (PAT) at Rs 628.16 crore in the same quarter a year ago mainly on the back of exceptional gain of Rs 299 crore for deferred tax on sale of investment included in the previous year.
“Continued efforts are being made for cost reduction by higher blending of low CV (calorific value) coal. The coal mines profits were affected due to the Domestic Market Obligations requirements,” it said.
Tata Power’s fuel costs during the October-December quarter rose to Rs 3,189.87 crore, from Rs 2,491.24 crore in the corresponding quarter a year ago.
The company’s finance costs in the third quarter also rose to Rs 1,013.96 crore, from Rs 855.28 crore in the like quarter of 2017-18.
The company’s total income, however, rose to Rs 7,721.52 crore during the quarter in consideration from Rs 6,451.31 crore in the same period of 2017-18.
The statement also said that the company’s net profit over April-December 2018, at Rs 2,333.09 crore, was higher compared to Rs 1,246.52 crore earned on this count in the corresponding 9-month period of 2017.
The Tata Power stock closed on Monday at Rs 70.80 a share, down Rs 3.15, or by 4.26 per cent, on its previous close on the BSE.