Mumbai-based power major Tata Electric Com-panies (TEC) net profit has risen by 39.16 per cent in 1997-98 due to a sharp surge in other income.
The company has stepped up the dividend by two per cent to 37 per cent. Net profit has increased to Rs 319.75 crore in 1997-98 from Rs 229.76 crore in 1996-97. The company's sales remained stagnant rising by 0.72 per cent to Rs 2361.81 crore from Rs 2344.72 crore.
Other income rose sharply by 43.7 per cent to Rs 254.18 crore from Rs 176.89 crore. The company curtailed expenditure by 2.82 per cent. Expenditure fell to Rs 1763.31 crore from Rs 1815.57 crore. Interest charges rose by 18.34 per cent to Rs 174.11 crore from Rs 147.12 crore. Depreciation costs too increased by 18.66 per cent to Rs 183.55 crore from Rs 154.68 crore.
More From This Section
Profit before tax increased by 22.45 per cent Rs 495.02 crore from Rs 404.24 crore. The company's tax burden increased marginally by Rs 0.45 per cent to Rs 175.27 crore from Rs 174.48 crore. Statutory appropriations increased by a whopping 154 per cent to Rs 34.73 crore from Rs 13.67 crore.
Despite this, the distributable profit which is the true index of a power company's performance increased by 32 per cent to Rs 285.02 crore from Rs 216.09 crore.
TEC consists of three companies, Tata Power Company, Andhra Valley Power Supply Company and Tata Hydro Electric Company. The largest of these is Tata Power with Tata Hydro being the smallest.
The company has stated that, "Fuel prices were lower which benefit was passed on to the consumer resulting in lower tariff. In addition, most of the power being generated by BSES at the Dahanu station is being brought into Mumbai.
This resulted in lower power being purchased by BSES and in turn the companies purchase from MSEB were also substantially lower.
The outgo on dividend for the company along with the tax burden is Rs 92 crore.
The company has also said that the profits were primarily due to the returns from the Jojobera unit which was acquired last year, cost reductions and increase in other income.
TEC's proposals for setting up captive power units for other companies is in various stages. This will enhance the generation capacity of the company by 500 mw.
The 80 mw plant at Belgaum is being configured to use cheaper fuels other than naphtha.