Operational efficiencies bolster Tata Power Q1

CORPORATE SCORECARD

Tata Power, India's largest private sector power company, reported a net profit of Rs 190.20 crore for the first quarter, up 56 per cent, compared with Rs 121.85 crore in the corresponding quarter last year, on the back of operational efficiency.

Revenues rose 10 per cent to Rs 1,511.48 crore for the period compared with Rs 1,368.41 crore in the corresponding period a year earlier. EBIDTA rose to Rs 320.88 crore (Rs 299.06 crore). Profit before tax (PBT) went up to Rs 227.88 crore (Rs 170.61 crore).

"The results during the quarter reflect our focus on robust financial performance through maximising operational efficiencies both in the license area in Maharashtra and also our captive power plants in Eastern India. Stake acquisition in Bumi Resources shows our commitment in securing long-term fuel interests and thereby driving profitable growth," said Prasad R Menon, managing director, Tata Power.

Tata Power said the Mumbai licensed area registered robust financial as well as operational performance during the quarter, due to higher units sold and revised tariffs.

The revenues from license area were up 14 per cent to Rs 1,304.34 crore compared with Rs 1,139.65 crore in the corresponding period last year. The unit sales in licensed area increased by 9 per cent to 3,302 MUs in first quarter of 2007-08 compared with 3,035 MUs in the corresponding period last year.

The company had a foreign exchange gain of Rs 37.87 crore for the period, arising out of exchange differences on borrowed funds and liabilities in foreign currencies due to the strong rupee.

Tata Power said the company was actively pursuing setting up a 2,400 mw mega power project in coastal Maharashtra, based on imported coal to meet the requirements of Mumbai city and Maharashtra, and is in discussion with the state government regarding land for the project.

During the quarter, it completed its acquisition of 30 per cent equity stake in major Indonesian thermal coal companies owned by PT Bumi Resources.

The share price of Tata Power rose 3.17 per cent to Rs 706.10 today on the Bombay Stock Exchange (BSE) compared with its previous close of Rs 684.40.