Tec Profits Up 1.69% At Rs 177.94 Cr

Mumbai-based power major Tata Electric Companies (TEC) net profIt rose by a marginal 1.69 per cent in the first six months of 1997-98, thanks to a lower tax burden.

The company posted a net profit of Rs 177.94 crore for the period ended September 30, 1997, against Rs 174.98 crore for the period ended September 30, 1996. Turnover rose marginally by 3.96 per cent to Rs 1228.22 crore from Rs 1181.48 crore. Other income remained stagnant at Rs 115.42 crore against Rs 114.98 crore. Total expenditure slightly moved up by 4.26 per cent to Rs 922.78 crore from Rs 885.04 crore.

 

The companys interest charges remained stagnant at Rs 74.91 crore against Rs 74.21 crore for the corresponding period of the previous year.

Gross profit, however, fell by 3.15 per cent to Rs 345.95 crore from Rs 357.21 crore. Deprecia-tion charges rose to Rs 91 crore from Rs 77.31 crore. Profit before tax fell to Rs 254.94 crore from Rs 279.90 crore. The company made a net profit despite this due to a sharp 26.61 per cent fall inn the tax burden from Rs 104.92 crore to Rs 77 crore.

The other factor that has contributed to the company bottomline is the due to the returns from the 67.5 mw Jojobera power plant which TEC has acquired from Tata group steel major, Tata Iron & Steel Company (Tisco).This will now serve as a captive power plant for Tisco. The capacity of the power plant will be expanded to over 300 MW.

TEC is actually three companies, Tata Hydro Electric power Supply Company, Andhra Valley Power Supply Company and Tata Power company. The three companies share profits and expenses in the ratio of 50 per cent (Tata power), 30 per cent (Andhra Valley) and 20 per cent Tata Hydro. TEC has a total generating capacity of about 1624 MW from gas based plants in Mumbai and three hydro plants in Maharshtra. TECs customers, BSES, BEST and bulk industrial purchasers.

The company has also obtained an in principle clearance from the Mahrashtra government for setting up a 428 MW power plant at Bhivpuri.