Tata Power has reported a stupendous surge in its consolidated net profit after tax.
The profit figure recorded by the largest power generation company in the country stood at INR 1,735 Crore for the quarter concluded on June 30, 2018. There has been a fourfold increase in its financial gain when compared to the year-ago quarter when the figure stood at INR 405.8 Crore, as per a regulatory filing.
Various factors have contributed to this steep growth in the consolidated profit of Tata Power.
During the quarter that ended in June, it sold off its investments in associate companies, Tata Communications Ltd and Panatone Finvest Ltd. These had been classified as assets meant for sale a year ago. This has reflected in the consolidated profit, because of which the company has witnessed an extraordinary leap in the final results as the financial gain made from the sale of the investments was worth INR 1,897 Crore.
Besides, the company has also benefitted largely from the higher coal process as well as adoption of IND-AS 115, which positively impacted CGPL (Coastal Gujarat Power Ltd).
That apart, the total expenses incurred by the company on the consolidated basis rose to INR 7,156.19 Crore over INR 6,066.8 Crore in the year-ago duration.
Praveer Sinha, CEO and Managing Director, Tata Power observed the upward sloping growth story of Tata Power and identified the key growth areas as “renewable generation, transmission, distribution and new and value-added businesses including rooftop solar, smart metering, micro grids in rural areas and setting up of electric vehicle charging units.”
He further added that though the hydro and thermal businesses were delivering good performance, the company’s future lies in the growth areas, which will add value to it and help align it with the needs of the consumers.
Detailing the consolidated profit, Tata Power said in a statement, “Consolidated PAT stood at INR 1,735 Crore, up by 328% as compared to INR 406 Crore in Q1 FY18 due to all round performance and exceptional gain of INR 1,483 Crore.”
Elaborating on the factors that influenced the PAT, Sinha said that they could be attributed to “change in accounting standards, higher mining cost, change in Indonesian regulations in coal companies and forex hit in CGPL.”
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