Tata Power on Friday reported a net loss of Rs. 75 crore for the third quarter that ended in December 2013, lower than the year-ago period, mainly due to reduction in overall expenses.
It had reported Rs. 329 crore in net loss for the corresponding period of the previous financial year, due to impairment charges worth Rs. 600 crore, Tata Power said in a stock exchange filing.
Tata Power’s total income from operations in the third quarter of the ongoing fiscal year (2013-14) was down at Rs. 8,700 crore, from Rs. 9,039.31 crore in the year-ago period.
Its cost of fuel during the quarter decreased to Rs. 2,307 crore, from Rs. 2,696 crore in the same period last year.
On standalone basis, the company posted net profit of Rs. 251.13 crore for the quarter as compared to Rs. 216.38 crore for the three months ended December 31, 2012.
Total income decreased however from Rs. 2,580.93 crore for the quarter to Rs. 1,998.59 crore for the quarter ended December 31, 2013.
Last week, the company exited from the Indonesian coal mining firm PT Arutmin for $500 million (Rs. 3,150 crore) to cut debts. The company’s Mundra UMPP project is facing under-recovery challenges.
Tata Power had purchased 30 per cent each in PT Arutmin and KPC for $1.1 billion in 2007.
Tata Power, India’s leading private power generator, through its wholly-owned subsidiary signed an agreement to sell its 30 per cent stake in Arutmin and associated companies in coal trading and infrastructure to an Indonesian firm Bakrie Group entity.
It continues to hold its equity stake in PT Kaltim Prima Coal which owns one of the largest thermal coal producing mines in the world.