Tata Power Q4 net drops 19 per cent

For the quarter ended 31 March 2006, Tata Power has reported an 18.61 per cent decline in net profits to Rs138.82 crore from Rs170.55 crore for the previous year quarter. Total revenues for the quarter increased 7.98 per cent to Rs1,246.53 crore from Rs1,154.38 crore.

Power revenues for the quarter were higher by 28.49 per cent while revenues from other businesses declined 35.98 per cent. Other income for the quarter declined 60.73 per cent.

Operating profits for the quarter improved by 34.68per cent while operating margins as a percentage of net revenues increased to 13.43 per cent from 12.14 per cent.

Cost of power purchases and fuel costs rose 36.71 per cent during the quarter over the previous year quarter. Operational costs for other businesses declined 30.15 per cent. Other expenses rose 34.79 per cent while staff costs declined 25.6 per cent.

Interest costs rose modesty by 4.74 per cent while depreciation costs declined 28.64 per cent. Provision for taxation increased 56.15 per cent.

For the full year 2005-06, standalone net profits increased 10.73 per cent to Rs610.54 crore, or Rs30.82 per share from Rs551.36 crore, or Rs27.83 per share. Full year standalone revenues increased 13.22 per cent to Rs4,888.4 crore from Rs4,317.57 crore.

Revenues from sale of power increased 17.45 per cent during the year while income from other businesses declined 2 per cent. Other income for the year declined 15.89 per cent to Rs325.61 crore from Rs387.13 crore.

Operating profits for the year declined 12.31 per cent while operating margins as a percentage of net sales declined to 18.31 per cent from 24.24 per cent for the previous year.

Operating margins were impacted by a 30.71 per cent rise in cost of power purchased and fuel. Operational costs for contracts rose 14.77 per cent while other expenditure increased 10.19 per cent. Staff costs increased 11.76 per cent during the year.

The company managed a modest improvement in the bottom line through a reduction in interest, depreciation and tax provisions. Interest costs for the year declined 13.67 per cent while depreciation charges dropped 22.6 per cent. Tax provisions were lower by 34 per cent.

Consolidated profits for the year 2005-06 increased 18.94 per cent to Rs707.33 crore from Rs594.7 crore for the previous year. Consolidated revenues rose 13.19 per cent to Rs6,006.63 crore from Rs5,306.83 crore.