Tata Power Company has posted a 19.94 percent decline in net profit to Rs 391 crore in 2000-01 from Rs 469 crore in 1999-2000. Distributable profits, the true measure of a power company's performance, declined by 14.87 per cent to Rs 363 crore from Rs 417 crore last year. The company has declared a record dividend of 50 per cent.
The figures are not strictly comparable with those of the previous year as the profits for the year ended March 2001, represent those of the merged entity. The Andhra Valley Power Supply Company and the Tata Hydro -Electric power Supply Company were merged with Tata Power Company on April 1, 2001. The 1999-2000 figures are a consolidation of the figures of the three companies.
"The results should be seen in the right perspective. Last year's increase in treasury operations was a product of our redeeming the euro notes and booking profits. We also booked profits on sale of shares last year. The redemption was a one-off phenomenon and this cannot be expected to happen every year," said Adi J Engineer, managing director of Tata Power.
The company's sale of electricity has increased to 9,457 million units from 9,205 units. Engineer attributed this to an aggressive marketing push. Tata Power has, over the last few years, been hit as BSES bought lesser power from it after it commissioned its 500 mw plant at Dahanu in Maharashtra.
Engineer said this was first felt in 1997-98 when the three separate power companies could sell only 9,381 units. This had fallen further in the next two years. Now the situation had been reversed with the company selling 9,457 million units last year, Engineer said.
