Tata Power on Wednesday reported a 66% year-on-year fall in net profit at Rs. 146 crore during the April-June quarter, hit by rising production expenses, high interest costs and foreign exchange losses.
The company had reported a net profit of Rs. 430 crore in the corresponding period of the last fiscal year.
Revenues, however, grew 25% at Rs. 7,254 crore.
Depreciation cost started kicking in as its ultra mega power projects (UMPP) in Mundra and Maithon were commissioned during the quarter that just came to a close.
"Tata Power's generation capacity crossed 6,000 MW with the commissioning of the 800-MW unit 2 of the Mundra UMPP," said Anil Sardana, managing director, Tata Power.
"Our coal companies showed lower realisations on the back of the global economic slowdown and falling coal prices," Sardana said.
Tax expenses rose by 55% to Rs. 226 crore from Rs. 509 crore on a year-on-year basis.