Mumbai: Tata Power on Thursday reported an exponential rise in its consolidated net profit for the first quarter ended June at Rs 1,735 crore on the back of exceptional gain.
In a statement here, the integrated power major said that the over fourfold jump in its net profit for the quarter in consideration was a one-time gain of Rs 1,897 crore on sale of its investments.
The company had posted a profit after tax (PAT) of Rs 405 crore in the same quarter of the last fiscal.
“Q1 FY19 consolidated PAT rose to 1,735 crores due to all round performance and exceptional gain of Rs 1,483 crore (net of taxes) as against Rs 406 crore in the same period last year,” Tata Power said.
The company’s PAT in the first quarter before one-time gain stood at Rs 441.1 crore, as against Rs 633 crore in the like quarter of last year.
“PAT was impacted by lower profit in coal companies mainly due to change in the Indonesian regulations for Domestic Market Obligations, adoption of new accounting standard IND-AS115 and forex impact at CGPL (Coastal Gujarat Power Ltd).”
The company’s consolidated revenue during the April-June quarter at Rs 7,139 crore rose 16 per cent over the same quarter last year.
However, Tata Power’s earnings before interest, taxes, depreciation and amortisation (EBITDA), or operating income, was down 8.5 per cent at Rs 1,771 crore.
Revenue from operations during the quarter in question increased 14 per cent at Rs 7,313 crore, as against the Rs 6,415 crore income in the same period of 2017-18.
During the quarter ended June, the company sold investments in associate companies Tata Communications and Panatone Finvest for Rs 1,897 crore.
“During the quarter, the company added 100 MW of capacity and won new renewables bids worth 400 MW,” the statement added.
The Tata Power stock closed on Thursday at Rs 70.85 a share, up Rs 3.05, or by 4.50 per cent over its previous close on the BSE.