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Tata Power net profit rises 25% in 2007-08

In spite of the sharp increase in oil and coal prices globally in the financial year 2007-08, Tata Power Company Ltd has posted 25 per cent increase in net profit at Rs 869 crore up from Rs 696 crore posted in the previous year.
The net sales have also increased by 25 per cent for the fiscal at Rs 5,915 crore (Rs 4,715 crore).
The company reported 3.72 per cent growth in its annual sales at 14,959 million units (MUs) in FY08 against 14,422 MUs. Trombay thermal power station recorded the generation of 10,002 MUs with a plant load factor of 85.61 per cent for FY08.
Jojobera thermal power station generated 2,862 MU in FY08.
The fuel expenditure has climbed to Rs 3,714 crore from Rs 2,708 crore in the last fiscal. The company has recommended a dividend of Rs 10.50 per share.
Talking to mediapersons after announcing the results, Mr Prasad Menon, Managing Director, said that the company plans add about 13,000 MW of generation capacity in the next five years through its various projects, which are underway. The Mundra ultra mega power project is on schedule and the first unit would come up by September 2011, he said.
Mr Menon said that the company is planning to set up large power projects in Maharashtra. For the Shahapur power project, the notice of land acquisition has been issued by the Maharashtra Government and many land holders have shown willingness to sell land. If the company gets 500 hectares it would be able commission the project by 2012, he said.
He said that the 1,050-MW Maithon project, which is being built in joint venture with Damodar Valley Corporation, has completed its financing. The project has a debt-equity ratio of 70:30 and would require Rs 4,450 crore investment, he said. Shipping venture
Mr Menon said that by 2012 the company would be importing about 22 million tonnes of thermal coal for which it would require 9 cape size vessels. $500 million has been earmarked for this. The company has already contracted three vessels on long-term basis, he said.
“Our investments in power projects are for 25 years and prices of commodities like coal go through cycles. Even shipping and freight prices are cyclical. By getting into shipping we have evened out our risk,” Mr Menon said.

At the closing of market hours on the BSE on Monday the scrip was traded at Rs 1,192.60, down by 4.82 per cent over the previous close of Rs 1,253.05.

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