Tata Power on Friday reported a 43.7 per cent year-on-year decline in its consolidated net profit for the July-September quarter to Rs 268 crore on account of forex losses in Mundra and exceptional provisioning towards DoCoMo and the gas-based power plant in Rithala near Delhi.
The rupee depreciation during the quarter led to a foreign exchange loss of Rs 113 crore at its wholly owned subsidiary Coastal Gujarat Power that operates the 4,000-MW Mundra Ultra Mega Power Project.
The company also made an impairment charge of Rs 35.63 crore towards the 108-MW gas-based Rithala power plant that has not been operating for the last four years. Besides, the company made provisions of Rs 113 crore towards investments in Tata Teleservices, the company said in notes to the consolidated financial statement. Earnings before interest, tax, depreciation and amortisation (Ebitda) during the quarter under review was up 27.3 per cent to Rs 1,849 crore, while the Ebitda margin was up 400 basis points to 24.14 per cent on better operational efficiency.
The cost of power purchased dropped to Rs 2,190 crore, compared with Rs 2,458 crore a year ago, while expenses on raw material consumed fell to Rs 151 crore from Rs 221 crore. However, fuel costs rose to Rs 2,529 crore, compared with Rs 2,116 crore a year ago, owing to higher price of imported coal. (With inputs from FE)