Other income totalled Rs 114.34 crore, down from Rs 115.42 crore. Total expenditure rose to Rs 1,071.81 crore from Rs 922.78 crore and interest to Rs 97.93 crore from Rs 74.91 crore in the previous fiscal. Gross profit after interest but before depreciation and tax stood at Rs 353.96 crore, against Rs 345.95 crore.

Depreciation was Rs 92.84 crore, compared with Rs 91.01 crore in the first half of 1997-98. Profit before taxes moved up to Rs 259.12 crore from Rs 255.04 crore. Provision for taxation fell to Rs 75.33 crore from Rs 77 crore in the previous year.

TEC comprises The Tata Power Company, the Andhra Valley Power Supply Company and the Tata Hydro-Electric Power Supply Company. The company is a licencee for powergeneration, transmission and distribution in Mumbai.

INSIGHT
H2 will be adversely affected

On a half-to-half basis, there has been practically no topline as well as earnings growth in TEC because of lower purchases from BSES despite the fact that BSES has paid Rs 21 crore as standby charges which it did not pay last year. This has marginally cushioned the blow of arbitrary standby charges imposed by MSEB on TEC. Compared with the first quarter of 1998-99, the performance in the second quarter is much better due to lower fuel costs. With standby charges being jacked up by a further Rs 66 crore by MSEB and BSES's share in it being negotiated, the second half will be adversely affected.