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Mixed results in Tata group: power up, telecom down

The Tata electric companies comprising Tata Power Company Limited, the Andhra Valley Power Supply Company Limited and the Tata Hydro-Electric Power Supply Company Limited have posted "satisfactory" increase in net profit during the first quarter of current financial year.

The total sales of Tata Power rose by Rs 162 million to Rs 3.02 billion as compared to Rs 2.96 billion in the corresponding period of previous year and net profit after tax increased by Rs 9.5 million to Rs 371.8 million.

The Andhra Valley Power Supply Company Limited recorded the sale of Rs 1.81 billion showing a gain of Rs 37.2 million as compared to Rs 1.77 billion of corresponding period of last year. The net profit after tax drifted higher by Rs 2.9 million to Rs 236.8 million.

Tata Hydro-Electric Power Supply Company Limited has registered total sale of Rs 1.20 million increasing 24.8 million over the corresponding period of previous year's Rs 1.18 billion. The net profit after tax rose by Rs 8.2 million to Rs 155.8 million.

Tata Telecom Limited incurred a net loss of Rs 56.95 million during the first quarter of the fiscal year ended June 30, 1998 against Rs 28.92 million loss of the corresponding quarter of previous fiscal year.

The unaudited financial results of the company for first quarter show that the net sales and income declined to Rs 232.89 million from 265.75 million while the total expenditure was Rs 257.02 million against 258.77 million of the previous year's quarter. The gross loss increased to Rs 47.92 million during the year from Rs 21.93 million. The interest and depreciation was Rs 31.76 million and Rs 9 million respectively during the first quarter of this year.

The company is engaged in the manufacture and marketing of telecommunication equipment, which are in the nature of capital goods to the ultimate customer. This business has a strong seasonal trend and therefore the quarterly results cannot be considered as a true reflection of the overall annual results, a company release said.

UNI