Tata Power Company (TATAPOWER) Q4 96/97 earnings summary

Executive summary

• FY97 distributable profit rose 26.25% to Rs 10,722.22 lakh despite PAT falling 48.85% to Rs 11,405.61 lakh, mainly due to lower statutory and special appropriations.

• Power generation fell 7% to 9,315 MU amid scheduled outages of both 500 MW units and forced outages at other thermal units; major capacity and network projects advanced.

Financial highlights

• Revenue from power supply increased 2.08% to Rs 117,438.71 lakh; total income was Rs 126,235.77 lakh vs Rs 124,370.55 lakh in FY96.

• PBT after depreciation was Rs 20,161.45 lakh vs Rs 31,218.27 lakh; PAT was Rs 11,405.61 lakh vs Rs 22,299.92 lakh.

• Distributable profit was Rs 10,722.22 lakh vs Rs 8,492.62 lakh; proposed dividend remained Rs 3.50 per equity share, or 35%.

• The MSEB tariff increase of Rs 49.5 crore from 1 Oct 1996 was largely absorbed; consumer tariffs rose Rs 12.5 crore.

Outlook and guidance

• Preliminary work began on a further 240 MW at Jojobera; the 450 MW multi-fuel proposal remained under discussion with the Maharashtra government.

• An 80 MW multi-fuel project was awarded by Karnataka, with final fuel linkage awaited and land and water acquisition in progress.

• Bidding was underway for captive power plants; the 220 kV Dharavi–Backbay underground transmission project was estimated at Rs 416 crore.

• Abu Dhabi/Al Ain substation work was expected to finish by the end of FY98; additional 220 kV switching stations at Parel and Mahalaxmi were planned.