Tata Power Q3 profit dips 2.5%

Despite record power generation by its thermal plants, Tata Power Company posted a 2.48 per cent dip in net profit at Rs 197.28 crore for the third quarter ended December 31, 2007, as compared with the corresponding quarter in the last financial year (Q3FY07).

The company, the country's largest private power utility, said net profit for the quarter was not comparable year-on-year as Q3FY07 included higher reversal of tax provisions at Rs 130 crore from favourable assessments and orders for the Mumbai Licence Area operations.

Revenues rose 18.3 per cent to Rs 1,419.40 crore, as compared with Rs 1,199.72 crore in Q3FY07.

According to the consolidated figures, profit before tax grew 48.2 per cent to Rs 195.97 crore, as against Rs 132.23 crore in the corresponding quarter last year.

"We continue to consolidate our power business as an integrated power and energy company through operational excellence, capacity expansion and foray into new markets," said Prasad Menon, managing director, Tata Power.

Tata Power's projects are in various stages of implementation across the country. Our track record of steady project implementation and superior service augurs well for the consumers and various stakeholders moving forward, he added.

For the nine months ended December 31, 2007, the company reported 6.8 per cent growth in net profit at Rs 644.91 crore, as against Rs 604.07 crore in the corresponding period last financial year.

During the period, the company's revenues rose 13.6 per cent to Rs 4,281.44 crore compared with Rs 3,767.92 crore. Sales volume during the nine-month period showed an increase 4.3 per cent at 11,481 MUs.