Tata Power Net Dips 45% In Q2; H1 Profit Lower By 34%

Mumbai, October 22: | Updated: Oct 23 2002, 05:30am hrs
Tata Power Company (TPC) has recorded a 44.87 per cent drop in net profit to Rs 134.93 crore in the second quarter of the fiscal ended September 30, 2002 as against a net profit of Rs 224.81 crore in the corresponding quarter of the previous fiscal. Sales for the period was higher by eight per cent at Rs 1202.14 crore, as against Rs 1104.48 crore in the previous fiscal. Operating profit increased by 14 per cent to Rs 340 crore from Rs 297 crore.

According to the company, the net profit was influenced by an extraordinary income on sale of investments in the second quarter of the previous year and increase in depreciation from Rs 70 crore to Rs 80 crore due to commissioning of additional captive power plants (CPP) at Wadi and Jojobera. Further, the company has said that provision for tax in the quarter was also higher at Rs 96 crore in the second quarter of the fiscal as against Rs 58 crore in same periiod of the previous fiscal. Other Income for the company in the second quarter stood at Rs 56.46 crore as against Rs 98.46 crore in the previous fiscal. Interest paid during the second quarter was, however, lower at Rs 85.36 crore as against interest of Rs 89 crore paid in the same quarter of the previous fiscal. TPCs total sales from power generation was up by 8.3 per cent to 3,315 million units (MUs) from 3,062 MUs with increase in power purchase by Maharashtra State Electricity Board and BSES. For the half year ended September 30, 2002, TPCs net profit stood at Rs 218.68, a drop of 34 per cent compared to net profit of Rs 331.38 crore in the previous fiscal. Net sales for the half year ended September 30, 2002 were at Rs 2,242 crore as against Rs 2097 crore in the previous fiscal.

According to the company, BSES and MSEB contributed to the increase in the sales, with power purchases at Rs 712 crore by MSEB as against Rs 649 crore in the previous fiscal, while BSES purchased Rs 84 crore of power as against last years Rs 56 crore. According to TPC managing director Firdose Vandrevala, This time, other businesses like powerstems, broadband services and electronics have contributed to a revenue generation of Rs 15.28 crore for the second quarter as compared to Rs 7.14 crore in the same period of the previous year. TPCs power systems division recently bagged a Rs 115 crore order from PowerGrid Corporation for setting up a transmission line in Jammu and Kashmir and the strategic electronics division has generated a revenue of Rs 21 crore.