The Hindu Business Line : Power woes cut TCC profit

Because of good value realisation for its products, despite 37 per cent production loss and a monthly additional outgo of around Rs 65 lakh towards power surcharge at the rate of 50 paise a unit, the company has been able to break even now, Dr M.P. Sukumaran Nair, Managing Director of TCC, told Business Line.

He said that the PSU had made a turn over of Rs 14.5 crore in July while it has come down to Rs 12 crore in August following the introduction of 25 per cent power cut from August 18.

In September, the turnover is estimated to be Rs 9 crore as capacity utilisation during the full month will be limited to 63 per cent. Added to this is the surcharge on power used.

TCC could, however, achieve break even because of the good price realisation as all the user companies such as minerals, petrochemicals and newsprint are on a growth path resulting in a demand push raising the price of Electro-chemical Unit (ECU) to Rs 25,000 a tonne, he said.

In fact, the company had been making good profits during June – August till the introduction of power cut and surcharge this year, Dr Nair said.