The Tata Power Company, India’s largest private power company, today announced its financial results for the first quarter ended June 30 for FY 2008-09.
Revenues rose by 34.05 per cent to Rs2,026.13 crore as against Rs1,511.48 crore a year earlier. PAT for the quarter stood at Rs190.55 crore and was not comparable with the same period last year owing to the change in the accounting method that the company undertook this quarter. Regulatory adjustments which used to be made on an annual basis in the fourth quarter would now onwards be made on a provisional basis every quarter. But for this, the PAT would have been at Rs210.55 crore. The PAT for the corresponding period last year was Rs190.20 crore.
(Note: By practice, the regulatory workings for return on equity, and the adjustments to revenue were determined at the end of each year. This resulted in a variation in profits in the fourth quarter, as the adjustments were made for the entire year, including the previous three quarters. We have therefore decided to change the practice and provisionally make these adjustments in each quarter. This has reduced profit after tax by Rs20 crore and profit after tax and appropriations by Rs48 crore in the current quarter.)
Commenting on the company’s performance, Prasad R Menon, managing director, Tata Power, said, “One of the key milestones for the company is the Supreme Court’s judgment on the retail licence issue. We welcome the Supreme Court’s order upholding our distribution rights in the Mumbai Licence Area. The company takes this opportunity to thank its consumers for the extra-ordinary support and confidence that they have shown in us for the last few years. It will be our endeavour to continue to provide reliable and quality power to our consumers and we look forward to servicing Mumbai as we have been doing for the last nine decades. All our generating units are running at high plant load factor leading to higher generation and enhanced efficiencies. Our future growth plans are in accordance with the expectations of our stakeholders and the growth continues as per our stated objective.”