Tata Power, the country’s largest power utility company, has reported net profit after tax and other statutory appropriations of Rs 141.9 crore for the third quarter of this financial year. The net profit was at Rs 101.1 crore which is 40.4 percent higher than Rs 101.1 crore reported for the same quarter last year.
The company increased net profit mainly due to additional power generation capacities of over 250 Mw. Hydropower generation was up 21 MUs while wind power increased by 32 MUs. Hydro, wind and merchant plant recorded a 40% increase in volume and accounted for 15% of total generation.
The customer base of the firm grew 7,124 to a total of 35,576. 14,700 customers had applied for the changeover, of which 6,257 have moved. The total addition for the year stood at 9,511.
The savings in fuel cost is Rs 344 crore for the quarter which accounted for more than two-thirds of the rise in pre-tax profits. In other costs, depreciation rose by 50%, while tax provisions were four times higher.
Firm’s net sales dropped by 16.7 percent to Rs 1,449.80 crore in the third quarter from Rs 1,741.5 crore in the corresponding period a year earlier. The revue mainly fell due to a change in the fuel mix and reduction in fuel prices. Analysts expected a net profit in excess of Rs180-190 crore.
All projects of the firm are being implemented steadily. Any of the major projects will open only after about 18 months. The company will commence the first unit of its 4,000 MW Mundra project in September 2011 which will nearly double the company’s capacity.
The shares of the firm declined 1.4 percent to close at Rs 141.9 on BSE.