Tata Power booked a net loss of Rs 83.8 crore in the second quarter of the current financial year, against loss of Rs 1,187 crore in a year ago period.
The company has said the loss was on account of increasing expenses and provision for impairment for its 4000 MW Mundra power plant.
Rise in expenses
Though sales grew 23 per cent, total expenses rose at a higher rate on account of higher fuel, manpower, coal processing and other expenses. This led to an EBITDA margin squeeze of 200 basis points at 20 per cent.
The net loss shrank from Rs 1,159 crore in Q2-12 to Rs 60 crore this quarter.
The current quarter includes an impairment charge of Rs 250 crore for its subsidiary Coastal Gujarat Power Ltd (CGPL), following the change in the long-term rupee/dollar exchange outlook from 45 to 50.
In Q2-12, an impairment charge of Rs 823 crore was booked based on an assessment of fuel and other operating costs.
Further, the quarter logged a forex loss of Rs 638.96 crore by CGPL.
Sales, revenue
Consolidated net sales increased to Rs 7,399 crore from Rs 6,282 crore during the previous similar period.
Revenues from the power business increased by 40 per cent to Rs 5,488.54 crore (Rs 3,934.43 crore).
Revenue from the coal business was Rs 2,056.77 crore (Rs 2,167.29 crore).
All-round performance
Anil Sardana, Managing Director, Tata Power, said: “During the last few quarters, the company recorded significant increase in its revenues driven by all-round performance of its business divisions. All our projects and subsidiaries have performed well, though coal companies posted lower PBIT as compared to the previous year due to falling coal prices.”
shanker.s@thehindu.co.in