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Forex losses pull down Tata Power Q3 net by 88%

The consolidated net profit of Tata Power stood at Rs 24.46 crore in the third quarter (Q3) (October to December, 2015), down 87.63% from Rs 197.74 crore reported during the corresponding period of last year.

Interestingly, the income from operation increased 9.39% during the same period to Rs 9,329.27 crore from Rs 8,528.4 crore in the same period of the previous year. The expenditure incurred was also reduced year-on-year.
 

The company incurred a loss Rs 60.86 crore on foreign exchange in Q3, 2015 as against a gain of Rs 421.01 crore in Q3, 2014. Apart from that, Tata Power lost Rs 223.66 crore in regulatory expenses in respect of earlier years while there were no such expenses charged in Q3 of 2014.

As the fundamental operations of the company remained stable, stock market experts maintained a “buy” advice on this stock.  
 

However, a positive trend was noticed in the cumulative profit for the first 9 months.  From April to December, 2015, the profit sharply increased to Rs 513.10 crore from Rs 8.69 crore posted in the same period of the previous fiscal.