The Hindu Business Line : Tata Power net sales up 36%

Mumbai, July 25 Tata Power Company Ltd posted a flat net profit at Rs 190.55 crore for the quarter ended June 30 against Rs 190.20 crore in the corresponding quarter last year.

The company, in a statement, said that the regulatory workings for return on equity, and the adjustments to revenue, were determined at the end of each year. This resulted in a variation in profits in the fourth quarter, as the adjustments were made for the entire year, including the previous three quarters.

“We have, therefore, decided to change the practice and provisionally make these adjustments in each quarter. This has reduced profit after tax by Rs 20 crore and profit after tax and appropriations by Rs 48 crore in the quarter,” the company said in the statement. But for this, the net profit would have been higher at Rs 210 crore, the company said.

Net sales increased by 36 per cent to Rs 2,049 crore for the quarter as against Rs 1,511 crore in the previous quarter. Sale of electricity for the quarter rose by 1.45 per cent at 4115 million units (MUs) against 4056 MUs in the corresponding period last year.

According to a company official, the 36 per cent increase in net sales is due to hike in fuel adjustment cost as a result of global increase in fuel prices.

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