Tata Power net profit falls 42% in first quarter

India's largest private power utility Tata Power has announced its financial results for first quarter of the fiscal year 2010-11. The company has informed that it has posted a net profit of Rs 318 crore in the first quarter of the current financial year. For the same period of time, the net profit was Rs 553 crore in the previous fiscal year.

So there has been a decline of almost 42% in the net profit of the company in the Q1 of the current fiscal against its corresponding quarter in the preceding year.The company has produced this fact to the Bombay Stock Exchange in a filing. According to the company officials, the higher power purchase cost and foreign exchange loss have been the basic reason of such drop in net profit this time.However, the net sales of the company have gone up in the quarter under review. The net sales of the company has gone up Rs 5,285 crore in Q1 of 2010-11 which is 7% up from the last year figure.