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Tata Electric - Other Income boosts bottomline

Jun 14, 2000

Tata Electric Companies (TEC) have posted a 42% rise in bottomline during the year ended 31st March 2000. The three companies comprising the TEC are Tata Power, Tata Hydro and Andhra Valley Power.

(Rs m) FY1999 FY2000 Change
Sales 23,006 27,811 20.9%
Other Income 2,411 3,648 51.3%
Expenditure 16,606 20,726 24.8%
Operating Profit (EBDIT) 6,400 7,085 10.7%
Operating Profit Margin (%) 27.8% 25.5%  
Interest 1,953 2,080 6.5%
Depreciation 1,894 2,018 6.6%
Profit before Tax 4,964 6,635 33.7%
Tax 1,664 1,949 17.1%
Profit after Tax/(Loss) 3,301 4,686 42.0%
Net profit margin (%) 14.3% 16.9%  
Earnings per share 40.15 56.33  

The TECs have benefited from a surge in other income, which grew by 51%. This more than offset the decline in operating margins. The depreciation and interest expenses increased only marginally. The provision for tax to increased sharply mainly owing to the tax on other income.

The board of the company have approved a scheme of merger of the three companies. The swap ratio has been set at 4 shares in Tata Power for every 5 shares in Andhra Valley and Tata Hydro. The companies have also proposed an issue of cumulative redeemable preference shares to the tune of Rs 3 bn on a private placement basis.

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