Tata Power Co Ltd on Friday reported a fourth-quarter adjusted profit that missed analysts' estimates, as lower recovery on the cost of fuel at one of its major power plants and higher fuel costs hurt margins.On an adjusted basis, excluding a one-time charge, the company posted an increase in consolidated net profit to 3.89 billion rupees for the quarter ended March 2017.Analysts on average had expected a consolidated profit of 4.26 billion rupees, according to Thomson Reuters data.
The charge is related to a write-off of a major part of the company's investments in the equity shares of Tata Teleservices Ltd (TTSL), in which Tata Power holds an interest.Including the charge, Tata Power posted a consolidated net loss for the quarter of 2.47 billion rupees ($38.1 million).
Tata Power had made a provision of 6.51 billion rupees that came from Tata Teleservices' share buy-back from Japan's NTT DoCoMo, after an arbitration award in favour of DoCoMo, Tata Power said in an exchange filing. The Delhi high court last month had approved the settlement of a dispute between Tata Sons and NTT DoCoMo, allowing the Indian firm to buy out the Japanese firm's stake in the telecoms joint venture.
Tata Power said consolidated revenue from its power business dipped 12 percent to 59.75 billion rupees in the March quarter.Shares of the Mumbai-based power company closed up 0.5 percent on the National Stock Exchange.($1 = 64.7975 rupees) (Reporting by Samantha Kareen Nair in Bengaluru; Editing by Gopakumar Warrier and Sai Sachin Ravikumar)
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Updated Date: May 19, 2017 22:00 PM