Mumbai, Oct. 22 (PTI): Higher tax provisions, depreciation and with no extraordinary income, Tata Power Company’s (TPC) net profit fell by 44.87 per cent to Rs 134.95 crore for the second quarter ended September 30 as against Rs 244.81 crore in the previous year.
“The operating profit was up 14.5 per cent to Rs 340 crore but the decline in net profit is due to a Rs 66 crore extraordinary income on sale of investments in the second quarter of the previous year,” TPC managing director Firdose Vandrevala said here today.
He said higher tax provisions at Rs 96 crore in the reporting period as against Rs 58 crore in the second quarter of 2001 and a Rs 10 crore depreciation due to commissioning of additional capacities at the company’s Wadi and Jojobera captive power plants also contributed towards the lower net profit.
The company has registered an 8.8 per cent increase in net sales at Rs 1,202.14 crore as compared with Rs 1,104 crore in the same period of the corresponding year.
TPC’s total sales from power generation was up by 8.3 per cent to 3,315 million units (MUs) from 3,062 MUs with increase in power purchase by Maharashtra State Electricity Board and BSES Ltd.
For the half year ended September 30, TPC’s net profit stood at Rs 218.68 crore while net sales were at Rs 2,242 crore.
Vandrevala said for the first half, in power generation sales, BSES and MSEB contributed to its increase with power purchase at Rs 712 crore (Rs 649 crore) and Rs 84 crore (Rs 56 crore) respectively.
Vandrevala said this time, other businesses like power systems, broadband services and electronics have contributed to a revenue generation of Rs 15.28 crore for the second quarter as compared with Rs 7.14 crore in the same period of the previous year.
“TPC’s power systems division recently bagged a Rs 115 crore order from Power Grid Corporation of India for setting up a transmission line in Jammu and Kashmir and the strategic electronics division has generated a revenue of Rs 21 crore. We have decided to concentrate more on these areas now,” he added.
On TPC’s exposure in the telecom sector, Vandrevala said the company has invested Rs 25 crore in Tata Teleservices Ltd taking its stake to 49 per cent in the loss making Tata group company.
“As of now, TPC’s investment in TTSL is at Rs 500 crore in the form of equity and advanced payments. Our investment in Panatone Finvest is also Rs 500 crore and we have participated in the Hughes Tele.Com India Ltd’s open offer directly by purchasing shares worth Rs 115 crore,” he added.
On recently acquired North-Northwest Delhi Distribution Company of the Delhi Vidyut Board, Vandrevala said in three months of its operations, the company had clocked collections up to Rs 279 crore.