Tata Power was positively charged on Friday as the market soaked in news of a solid 34% rise in net profit of the private sector utility.
The scrip of the Tata group company jumped 4.23% to Rs 114.50 in early morning trades as a consequence. By 10:35 IST, it had registered volumes of over 1.52 lakh shares on BSE .
On Wednesday, after market hours, Tata Power announced that third quarter ended 31 December 2002 net profit grew a sterling 34% to Rs 145.97 crore (Rs 1.45 billion) compared to Rs 108.98 crore (Rs 1.08 billion) in the corresponding period of the previous year. Total income increased 19% to Rs 1,180.52 crore (Rs 11.8 billion).
For Q3, in fact, analysts had predicted the power major to register a decline in net profit (Rs 96-100 crore) on revenues of Rs 950-955 crore (Rs 9.5-9.55 billion).
Besides the good results, the scrip has also been boosted by news that Tata Power is close to acquiring 49% stake held by US power major AES in the Orissa Power Generation Company for over Rs 800 crore. OPGC, a joint venture between AES and Grid Corporation of Orissa or Gridco (which holds a 51% stake), runs a 420-MW coal-fired power plant.
Incorporated in 1919, Tata Power Company was promoted by the Tatas. It has worked in tandem with its sister companies, the Tata Hydro Electric Power Company and the Andhra Valley Power Supply Company.
A pioneer in the Indian power sector, Tata Power is rated as one of the country's largest private power utilities. The fully-integrated energy company offers turnkey solutions to the industry and other hi-tech segments.
Tata Power installed and commissioned India's first 500 MW unit at its Trombay thermal generating station. The company has provided economical and reliable power for the last 80 years to the highly industrialised state of Maharashtra and its capital, Mumbai.
Tata Power's main line of business is the generation, transmission and distribution of power. Tata Power supplies 52% of its total generating capacity (installed) to the private sector as a licensee in India, with about 16% going to Maharashtra.
The company's hydro-generation plants are located in Khopoli, Bhivpuri and Bhira. Its thermal power plants are located in Trombay in Maharashtra, Jojobera in Bihar, and Nadi and Belgaum in Karnataka. The pumped storage unit is also in Bhira.
In 2002, TPL announced investment plans of Rs 1,200 crore (Rs 12 billion), out of which Rs 700 crore (Rs 7 billion) was for the power business, Rs 100 crore (Rs 1 billion) for the energy business and the balance Rs 400 crore (Rs 4 billion) for the communications business. In 2003, the company plans on an investment of another Rs 550 crore (Rs 5.5 billion), which will take total investment to Rs 1,750 crore (Rs 17.5 billion).
The promoters held 32.54% stake in Tata Power, while the public, institutions and foreign bodies held 30.24%, 27.76% and 6.39%, respectively.
BSE Code: 500400