The Hindu Business Line : Tata Power Q4 net up at Rs 170.55 cr, to pay Rs 7.5

PROCEEDS from the sale of investments have enabled Tata Power to report a multi-fold increase in net profit for the fourth quarter ended March 2005, despite a decrease in revenues during the period.

Net profit amounted to Rs 170.55 crore, up from Rs 54.35 crore reported for the corresponding previous period.

However, operating profit was lower at Rs 157 crore (Rs 286 crore).

Revenue from power supply fell to Rs 861 crore (Rs 935 crore), while total income was down at Rs 962 crore (Rs 1,039 crore).

A one-time income of Rs 181 crore as profit from sale of investment in Tata Petrodyne Ltd shored up the bottomline for the quarter.

The realisation of higher profits has been through sale of investments while the margins have been under pressure due to regulatory guidelines on tariffs, said a company release.

Net profit for the year ended March 2005 was higher by 8.3 per cent. In fact, the company said, its PAT for the year has been its highest ever recorded.

Revenues from power supply fell to Rs 3,655 crore (Rs 3,991 crore), with total income down at Rs 3,930 crore (Rs 4,239 crore).

The decline in revenues was mainly on account of reduced tariffs and lower fuel cost, the release added.

Consumers in the Mumbai licence zone received the benefit of 10.1 per cent reduction in tariff.

Operating profit was lower at Rs 953 crore (Rs 1,287 crore). Profit before tax was modestly higher at Rs 758.79 crore (Rs 734.27 crore).

Annual generation, at 13,663 million units (MUs), and annual sales, at 12,663 MUs, were the highest ever, the release said.

"The company has achieved significant milestones this fiscal through higher generation and sales," said Mr Firdose Vandrevala, Managing Director.

During the year, the company realised additional savings of Rs 100 crore through its ongoing cost reduction initiatives by optimising fuel-mix and improving fuel logistics. The Wadi plant was also sold, for a consideration of Rs 235.45 crore.

The board of directors has recommended a dividend of Rs 7.50 per share.

It has also authorised the management to negotiate and finalise the sale of Tata Power Broadband, which offers services to telecom companies and bulk users of bandwidth.

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