Tata Power, on Tuesday, reported a consolidated loss of R66.73 crore in the first quarter of the current fiscal, missing analyst expectations, on lower revenue from coal business, reduced generation from Mumbai operations and lower traded volumes by its power trading subsidiary.
The company reported a consolidated loss of R66.73 crore on sales of R8,739 crore for the quarter ended June 30.
Click here for graphAnalysts had expected a profit of R216 crore on sales of R9,523 crore, according to Bloomberg estimates. The company had reported a loss of R49 crore on sales of R8,942 crore in Q1FY14.
Unlike Adani Power, Tata Power had not accounted for the compensatory tariff awarded by the Central Electricity Regulatory Commission (CERC) in February 2014 as ?the amounts associated are significant?. It said the consolidated profit would have been higher by Rs 225 crore for the quarter, had the amount been booked.
Tata Power said it was, ?legally advised that it had a good arguable case?. The company stands to realise an aggregate revenue of Rs 224.6 crore and Rs 1,019 crore for the period April 1, 2012, to March 31, 2014, through its subsidiary, Coastal Gujarat Power (CGPL).
The state-owned power distribution companies had challenged the CERC order and filed an appeal with the Appellate Tribunal for Electricity (APTEL). In July, the tribunal granted partial stay on the CERC order, but upheld the part which enforces the payment of compensatory tariff from March 1, 2014.
?The procurers have not commenced payment of bills raised by CGPL,? Tata Power said in a statement.
?CGPL will do its utmost to continue to honour its commitment towards the nation?s energy security by providing reliable and competitive power supply through the project and we hope for quicker resolution of the issues,? Anil Sardana, Tata Power chief executive office and managing director, said in a statement.
Consolidated net revenue fell 6% y-o-y to Rs 8,739 crore. The coal business, which contributes to approximately 24% of the company?s revenue, recorded sales of Rs 2,091 crore, a fall of 12% y-o-y. This was due to lower price realisations from coal companies, despite higher volumes sold, the company said. Revenue from power generation business fell 6% y-o-y to Rs 6,516 crore.
The company had a one-time gain of Rs 115 crore in the same period last year, which had boosted its profit in Q1FY14.
Tata Power, however, reduced its expenses with a 5% decrease y-o-y and 3% on a sequential basis to Rs 7,533 crore. Consolidated net loss narrowed on sequential basis.
The company said gross power generation was down 15% y-o-y to 3,301 MUs, on a standalone basis. Generation in Mumbai operations due to forced outage of unit 8 in Trombay plant fell 21% to 2,086 MUs while wind farms registered a lower plant load factor of 2%.
