Anil Sardana, CEO & MD, Tata Power spoke to CNBC-TV18 from the sidelines of the ambit India access conference underway in Singapore on the company’s second quarter performance and the business outlook going forward.
Talking about the stake sale of Mundra Plant to GUVNL, he said the proposal was from the lenders and they are in talks with procurers to sell stake in the plant. He said the sale process will take time because the procurers are keen to get competitive power, and so they are engaged into discussion to ensure every stake holders take some kind of a haircut and they get a competitive tariff.
We are hopeful that the lenders will continue to bring all the parties together for Mundra stake sale. We have also been participating in all the discussion, he confirmed.
The power distributor reported a fall of 43.6 percent in its September quarter net profit to Rs 268.5 crore. The bottomline was dragged largely because of a one-time loss of Rs 148 crore.
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However, the company posted good operational performance as earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 27.3 percent at Rs 1,850 crore against Rs 1,453 crore year on year. Meanwhile, the operating profit was reported at 24.2 percent against 20.1 percent.
As a group, the Tata’s have been looking to divest and demerge lot of non-core assets.
So, when asked if Tata Power was looking at demerging other businesses and also raise funds, Sardana said there is a clear growing interest that all the cross holdings that exist in the group companies are simplified and streamlined.
He further said, the proceeds from the sale of non-core assets will be used to pare debt.