The Hindu Business Line : Tata Power Q3 net up 26 pc

TATA Power Company today reported a 26 per cent rise in net profit for the third quarter of fiscal year 2003-04, but said revenues fell 10.5 per cent to Rs 1,027 crore.

TPC said net profit for the quarter ended December 31, 2003, stood at Rs 184.49 crore compared with Rs 145.97 crore for the third quarter of fiscal year 2002-03. The company's shares fell more than 6 per cent from its previous close to Rs 383.75 on the worse-than-expected performance. It was the top loser among Sensex shares on the BSE.

According to an analyst, even though the company's bottomline has grown, it has been achieved mainly by interest and fuel cost savings that it may not be able to repeat. Tata Power saved Rs. 65.55 crore on fuel costs due to change in fuel mix and heat rate improvement, a company release said.

It also said that TPC prepaid loans of about Rs 319 crore during the quarter lowering interest and finance charges by 32.53 per cent to Rs 57.02 crore from Rs 84.51 crore last year.

The release quoted Mr Firdose Vandrevala, Managing Director, TPC, as saying, "Tata Power's management has laid emphasis on improving profitability and enhancing shareholder value via a combination of increased focus on new business areas and greater thrust on reducing per-unit power cost. Over the last two quarters the management has seized the opportunity offered within the ambit of Electricity Act, to lay a strong future growth path."

However, a note to the account says that the numbers may not be representative of the whole year as they do not reflect adjustments required to be made in accordance with the Electricity Act, including deferred tax liability.

TPC said sales to BSES, its largest single consumer, at 861 million units were higher by 11 per cent while sales to MSEB were lower at 165 million units as compared to 400 million units in the third quarter of the previous year. Its total sales have declined from 3,235 million units to 3,174 million units. As part of increasing its customer base Tata Power has commenced sales to Madhya Pradesh Electricity Board in the month of December, the release said.