Tata Power's Q1 net profit drops 66% on interest cost, forex loss

MUMBAI: Tata Power Company reported a 66 per cent year-on-year decline in consolidated net profit in the first quarter of 2012-13 at Rs 146 crore, dented by high interest cost and foreign exchange loss.

"Our coal companies posted lower realization due to global economic slowdown and falling coal prices," Anil Sardana, managing director, was quoted as saying in a release.

The power generator's consolidated revenue was Rs 7,253.89 crore in April-June, up 25 per cent year-on-year. The company's bottom line was hurt as finance cost soared almost 89 per cent to to Rs 548.11 crore. Tata Power also reported a forex loss of Rs 45.2 crore during the first quarter as against gain of Rs 89.8 crore in a year ago period.

Tata Power, which now has an installed capacity of 6,099 megawatt, is looking to expand overseas to tap the opportunity available at a time when the domestic power sector is going through a rough patch. The company aims to increase its capacity to 25,000 mw by 2017.

The power producer holds a 30 per cent stake in the Kaltim Prima and Arutmin coal mines of Bumi Resources in Indonesia.

Tata Power said that it has approached Central Electricity Regulatory Commission to increase the price of power supplied from its 4,000 MW Mundra plant in Gujarat since the project has been making losses due to escalation in cost of imported coal. The company is in pact to sell electricity from the unit at 2.26 for every unit to state-run power distribution companies.