The company's turnover has slipped by over 8 per cent to Rs 560.56 crore from Rs 613.12 crore last year. Its other income has increased marginally to Rs 64.96 crore from Rs 62.54 crore.

The interest burden for the period rose sharply to Rs 53.82 crore compared to Rs 36.81 crore. The gross profit (after interest but before depreciation and taxation) was at Rs 203.31 crore as compared to Rs 207,71 crore earlier. Similarly, profit before tax stood at Rs 115.9 crore compared to Rs 162.21 crore.

However, the company managed to rein in the expenditure. It stands reduced at Rs 368.56 crore against Rs 429.14 crore recorded during the corresponding period last year. TEC comprises the Tata Power Companies, the Andhra Valley Power Supply Company and the Tata Hydro-Electric Power Supply Company.

The power utilityis one of the oldest licensee company in the state. It not only generates but also transmits and distribute power to the bulk consumers which also include other licensees like BSES and BEST.

Of its bulk consumers, BSES consumes around 30 per cent of TEC's total production. BSES, however, has reduced purchase of electricity from TEC over the years as it has began its own generation. This has also made TEC a power surplus company and thus the company is expanding its consumer base in the city.

INSIGHT

The third quarter results are not strictly comparable with those of the corresponding period of 1997, because BSES started paying standby charges at Rs 13.5 crore per month only from February 98. This increased revenue substantially this quarter. The lower unit sales and higher interest cost have more than compensated for savings in fuel cost. Comparing Q3 1998 with Q3 1997, PAT ( which is, however, irrelevant for investors in a utility) is lower by 10 percent. The point to be considered is thatcompared to second quarter of 1998-99, PAT is lower in the third quarter by 26 per cent compared to 16 per cent in 1996-97.