Ajay Piramal. Image Source: IANS News

Mumbai, Jan 28 : Tata Power on Monday reported 67.42 per cent plunge in consolidated net profit for the third quarter ending in December at Rs 204.61 crore mainly caused by lower profits from its coal business and higher losses due to fuel under-recovery from its Mundra plant.

In a statement here, Tata Power said it had posted a profit after tax (PAT) at Rs 628.16 crore in the same quarter a year ago mainly on the back of exceptional gain of Rs 299 crore for deferred tax on sale of investment included in the previous year.

"Continued efforts are being made for cost reduction by higher blending of low CV (calorific value) coal. The coal mines profits were affected due to the Domestic Market Obligations requirements," it said.

Tata Power's fuel costs during the October-December quarter rose to Rs 3,189.87 crore, from Rs 2,491.24 crore in the corresponding quarter a year ago.

The company's finance costs in the third quarter from Rs 2,922 crore in the year-ago-quarter to Rs 3,592 crore in the third quarter of this fiscal.

"For Q3 FY2019, PEL's revenues grew by 22 per cent to Rs 3,489 crore and net profit grew by 23 per cent to Rs 603 crore, led by growth across financial services and pharma businesses," said Ajay Piramal, Chairman, PEL.

"Our group's credibility, robust track record and balance sheet strength enabled us to get enough liquidity from banks and mutual funds, despite tightened liquidity for the sector over the last few months."

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