Thanks to the  provision for impairment loss of Rs.600 crore for Q3 and Rs.850 crore for 9MFY13, the company posted a “surprising” consolidated net loss at Rs.329 crore despite a 35% (YoY) rise in net sales at Rs.8992 crore. Its revenue from power business also soared 64% at Rs.6403 crore. Explaining the impairment loss, the company has stated, “Coastal Gujarat Power (CGPL), a wholly owned subsidiary, is in the process of implementing the 4,000 MW ultramega power project at Mundra. The management has reviewed and reassessed the recoverability of the carrying amount of the project considering the fuel cost, exchange rate variation and other operating costs that would impact future cash flows on commencement of commercial operations, the management has concluded that a provision for impairment loss of Rs 600 crore for the December quarter and Rs 850 crore for the nine months of FY13."

But for this, the company actually had a very good Q3. Its EBIDTA margin saw a sharp 550 bps jump at 20.6% and this was inspite of cost of power purchased rising 71% and cost of fuel soaring 53% due to higher power purchases and higher cost per unit,. Its depreciation cost was up 69% and interest outgo rose 72%. Its consolidated tax was lower mainly due to lower tax in Tata Power Standalone and lower tax in coal companies due to lower profits. During the quarter, its revenue from coal business was down 9% due to lower realization which was offset by higher quantity of coal sold and depreciation of Rupee. The company seems set for much better times in the quarters to come.