Tata Power net dips 33%

Tata Power Company saw 33 per cent dip in net profit for the January-March quarter to Rs 92.7 crore against Rs 138.82 crore in the same quarter owing to Rs 181.74 crore write-off from the revenue, which is to be paid back to Mumbai consumers on terms to be decided by the regulator. Income during the period was also down 9 per cent from Rs 1,239.23 crore to Rs 1,126.11 crore.

For 2006-07, Tata Power, which has bagged the contract to build the country's first ultra mega power plant in Gujarat, posted 14 per cent increase in net profit to Rs 696.8 crore, while total income was up 4 per cent to Rs 5,059.31 crore.

But for this reversal of tax, the profit before tax for the quarter and for the year would have been higher by Rs 181.74 crore, the company said in a statement. The company also announced a dividend of 95 per cent or Rs 9.50 a share.

Tata power has an installed generation capacity of 2,300 mw. Prasad Menon, managing director, said, "In spite of rising operating costs. We continue to consolidate our power business through capacity expansion and foray into new markets. The company aims to triple its generation capacity over the next five years."

The company is projecting an investment of Rs 2,670 crore in 2007-08. The capex would be at a higher level of Rs 4,800 crore if investments in the special purpose vehicle for the 1,000 mw Maithon project is included.

Considering the planned expansion projects, the company has proposed a preferential issue of equity shares and warrants to Tata Sons to raise about Rs 1,200 crore.