Tata Power Company (TATAPOWER) Q4 00/01 earnings summary

Executive summary

• FY2000-01 results include the amalgamation of Tata Hydro, Andhra Valley and Jamshedpur Power, effective 1 Apr 2000; prior-year figures are not comparable.

• Profit after tax was Rs 389.60 crore; total income was Rs 3,650.66 crore, including Rs 3,341.31 crore from power supply.

Financial highlights

• Profit before tax and statutory appropriations was Rs 530.02 crore, up from Rs 329.62 crore; distributable profits were Rs 363.29 crore versus Rs 206.80 crore.

• Proposed dividend: Rs 5 per share, compared with Rs 0.50 final dividend for FY1999-2000; dividend rate was 50%.

• Other income included Rs 67.88 crore net profit on investment sales, Rs 23.23 crore profit on repatriation of certificates of deposit and Rs 23.47 crore prior-year adjustments.

Outlook and guidance

• Mumbai licensed-area demand was expected to grow ~4% annually; a 24 MW Khopoli replacement unit and Kundli water augmentation were expected to increase generation.

• Jojobera's second 120 MW unit was expected to enter service in Dec 2001; Wadi expansion to 75 MW was expected in FY2001-02.

• Captive plants were expected to generate over 2,000 MUs in 2003 and contribute ~16% of total revenues from 2003 onward.

• Broadband launch in Mumbai was planned for 2001; network expansion plans cited Rs 300 crore for metro networks and Rs 500 crore for an intercity backbone.

• Lakshmi gas production was expected from mid-2002; Tata Petrodyne initiated PY-3 redevelopment to capture estimated additional recovery potential of 7.2 MMBO.