Tata Power Company (TATAPOWER) Q4 97/98 earnings summary

Executive summary

• FY98 distributable profit rose 34% to Rs. 143.25 crore, driven by Jojobera returns, cost savings and one-time rate-lock income; power-supply revenue grew only marginally.

• Profit after tax reached Rs. 160.33 crore versus Rs. 114.06 crore; proposed dividend increased to Rs. 3.70 per share from Rs. 3.50.

Financial highlights

• Total income was Rs. 1,308.36 crore versus Rs. 1,262.36 crore; power-supply revenue, net of cash discount, was Rs. 1,181.87 crore.

• Profit before tax and statutory appropriations rose to Rs. 248.30 crore from Rs. 201.61 crore; profit after tax before statutory appropriations was Rs. 160.33 crore versus Rs. 114.06 crore.

• Distributable profit increased 34% to Rs. 143.25 crore; proposed dividend was Rs. 43.02 crore and transfer to general reserve Rs. 25 crore.

• Other income rose to Rs. 126.48 crore from Rs. 87.97 crore, including Rs. 17.41 crore income from rate-lock termination.

Outlook and guidance

• First 120 MW Jojobera unit was targeted for commissioning by December 2000; major turbine and boiler orders had been placed.

• Bhivpuri hydro renovation: first 24 MW unit trial completed, second unit scheduled for commissioning during FY99 and third during the following year.

• Captive generation proposals covered 500 MW, including the Jojobera expansion; Belgaum's 80 MW plant conversion to heavy fuels awaited approvals.

• Feasibility studies began for an LNG terminal serving captive demand and Western India's gas requirements.