Tata Power Company (TATAPOWER) Q4 98/99 earnings summary

Executive summary

• FY99 profit after tax rose to Rs 161.61 crore from Rs 160.33 crore; lower regulated returns were offset by growth at Jojobera and Wadi and higher other income.

• Power supply revenue declined to Rs 1,139.85 crore from Rs 1,184.44 crore; proposed dividend remained Rs 3.70 per share, or 37%.

Financial highlights

• Total income was Rs 1,151.50 crore vs Rs 1,195.69 crore; profit before tax was Rs 244.68 crore vs Rs 248.30 crore.

• Profit after tax before statutory appropriations was Rs 161.61 crore vs Rs 160.33 crore; distributable profit was Rs 145.61 crore vs Rs 143.25 crore.

• Total expenditure fell to Rs 1,024.02 crore from Rs 1,060.06 crore; cost of power purchased rose to Rs 172.31 crore from Rs 155.54 crore.

• General Reserve transfer increased to Rs 50 crore from Rs 25 crore; balance carried forward was Rs 52.60 crore vs Rs 75.24 crore.

Outlook and guidance

• Permitted licensee return falls to 13% of capital base from FY00 after the RBI rate decline; additions to capital base after 1 Apr 1999 qualify for 16%.

• Targeted projects of Rs 4,800 crore over three years, with Rs 2,600 crore already commenced; projects expected to add over 600 MW and expand operations across several states.

• Jojobera 2x120 MW first unit targeted for Dec 2000 and second a year later; Belgaum 81.3 MW diesel plant awaits statutory approvals to begin construction.

• LNG terminal at Trombay planned at initial capacity of 3 mtpa; awaiting Foreign Investment Promotion Board clearance, with supplier discussions underway.