Tata Power’s net profit for the April-June quarter fell around 87% year-on- year to Rs 230.80 crore after the company recognised an exceptional amount of Rs 354 crore for a standby litigation with Adani Electricity Mumbai, and sale of non-core asset a year ago.
The company noted in its financial statement that the Supreme Court during the June quarter upheld the Appellate Tribunal for Electricity (APTEL) December 20, 2006, order directing the Group to pay around Rs 354 crore along with interest at 10% per annum from April 1, 2004, up to the date of payment.
“Consequently, the group has recognised an expense of around Rs 329 crore net of amount recoverable from customers, including adjustment with consumer reserves,” the company said.
However, the genco’s consolidated operating profit for the June quarter rose 23.6% y-o-y to Rs 2,302 crore while margins rose 449 basis points on account of lower losses at Mundra, new capacity addition in renewables and steady operational performance across all businesses.
The consolidated profit before exceptional items stood at Rs 254 crore compared to Rs 252 crore due to lower losses in Mundra on account of lower freight on board (FOB) price of coal, new capacity addition in renewables and favourable regulatory order in Maithon, the company said.
Amongst the operational projects, the renewables business Ebitda grew 12% y-o-y to Rs 663 crore with around 250 MW project commissioned in last one year and due to an increase in the EPC volume.
Tata Power Renewable Energy won 450 MW of solar bids and executed definitive agreements for a 50-MW open access solar plant. Another 250 MW is under implementation, the company said in its presentation.
Regarding Coastal Gujarat Power (CGPL), the subsidiary that operates the bleeding Mundra Ultra Mega Power Project, the company said it has achieved a positive Ebitda of Rs 168 crore compared to a loss of Rs 26 crore a year ago. The fuel under-recovery has reduced by around 40% y-o-y with lower coal prices, and benefits that accrued from blending of low and mid coal that increased from 30% to 50%. “Correspondingly, coal companies profits are lower than last year due to reducing coal prices. However, at CGPL and coal portfolio level, overall losses reduced,” the company said in its presentation.
Tata Power expects the approval for compensatory tariffs by five states for Mundra plant would get finalised soon.
During an analyst call, the company management said, “Approval of new tariffs is under consideration of other four states. They will update the CERC after deliberation to sign new supplementary power purchase agreements (PPAs). The Gujarat government made certain changes to the high-powered committee recommendations, and shared it with the other procuring states. Some of the states have asked for additional conditions, which, according to them, would help them get the approvals. We have agreed to some of them. We don’t know finally at what stage they are in, but it could be lower than what Gujarat had offered. It is not finally approved so we cannot say anything conclusively. The upper limit would be whatever Gujarat proposed.”
For the 1980-MW Prayagraj project that the company won under NCLT, the company said, “Unfortunately the approval process for the takeover through discoms in UP and its electricity regulator got delayed. We challenged the regulator’s order in the high court, which has asked APTEL to examine it. The hearing in APTEL is over and we expect the order to come anytime now, ”the company said.
Source : financialexpress
