Calcutta, April 30: RPG Enterprises flagship CESC Ltd has reported a 68 per cent growth in profit after tax last fiscal.

The number surprised analysts since the power utility reported a marginal decline in sales during this period. The PAT for the fourth quarter increased 35 per cent though sales were down 5 per cent due to falling tariffs.

CESC vice-chairman Sanjiv Goenka attributed the good show to operational efficiency attained by the company. “The plants are running flat out. We also reduced theft of power. Interest cost has gone down significantly too,” Goenka said.

In 2006-07, CESC posted Rs 336-crore profit on Rs 2,583 crore of sales compared with Rs 197-crore profit on Rs 2,590-crore sales in the previous year.

For the fourth quarter of 2006-07, between January and March, the PAT was Rs 61 crore on Rs 576-crore sales compared with Rs 48-crore PAT on Rs 605-crore sales in the previous year. The company also retired Rs 400 crore of debt last fiscal. Depreciation costs too fell to Rs 254 crore from Rs 164 crore. The new norm reducing the depreciation rate for power companies helped the company.

Sumantra Banerjee, CESC managing director, said the company has scripted a “textbook turnaround”.

“Average tariff has come down by 41 paise over the last three years. Our tariff is lower than what it used to be seven years ago. During the period, cost has gone up substantially. But we still managed to deliver this result,” he said.

CESC produces 975 mega watt of electricity and is setting up a 250 mw unit at Budge Budge. It is buying power to meet the demand for electricity during the peak hours. It is also exporting power during the off-peak hours.

Sources said since the company was operating at peak efficiency, it was in no position to accommodate any further hike in costs without raising tariffs.