1

Press Meet

The Tata Power Company Ltd.

23rd October 2003

2

Performance

3

Income Statement for Q2 FY04

Rs croresQ2 FY03 Q2 FY04 % Change

3480 Generation (MUs) 3182 (9)%

1202 Net Sales / Income from Operations 1062 (12)%358 Operating Profit 340 (5)%56 Other income 49 (13)%

103 Interest and finance charges 62 40%80 Depreciation 82 (2)%

231 PBT 245 6%96 Tax including Deferred Tax 75 22%

135 PAT 171 27%

Note: -ve means Adverse

4

Income Statement for H1 FY04

Rs croresH1 FY03 H1 FY04 % Change

6472 Sales (MUs) 5989 (7)%

2243 Net Sales / Income from Operations 2145 (4)%614 Operating Profit 627 2%86 Other income 73 (15)%

183 Interest and finance charges 140 24%163 Depreciation 164 1%354 PBT 396 12%136 Tax including Deferred Tax 126 7%219 PAT 270 24%

Note: -ve means Adverse

5

H1FY 04 H1FY 03 Variance %

Sales - MUs 5989 6472 (483) (7.5%)

Licensee (449)

Jojobera 27Wadi 48 Belgaum (109)

BSES (284)BEST 27Rlys 10MSEB (203)

Sales - Details

• Higher sales to BSES in previous year on account of • breakdown of Dahanu Plant due to flooding• higher PLF at Dahanu

6

Income from Operations

H1FY 04 H1FY 03 Variance %

Income from Operations. Rs.Crs. 92.7 49.6 43.1 86.9%

Power Business (Rs. 1.7 crores) Others Rs. 44.8 crores

Rs. crores % Variation

Strategic Electronics 7.4 42%

Power Systems 23.3 226%

Broadband 14.2 -

7

Cost Control Results

• Cost Control Measures introduced have significantly reduced cost

Savings over H1 FY03 Rs. crores

Savings in Other Expenditure 39

Savings due to Change in Fuel Mix 68

Savings on account of improvement in Heat Rate 11

Savings in Finance Charges 43

Total 162

8

Ratio Analysis

• Strong Financial Performance with increase in EBITDA margin, Net Profit margin and Return on Equity

• EPS has shown an increase 24%

• Low Debt : Equity ratio enhances Companies ability to borrow further loans

H1 FY03 H1 FY0431.2% EBITDA margin 32.6%9.8% Net Profit Margin 12.6%

11.2% Return on Equity 12.2%11.1 EPS (not annualised) 13.70.68 Debt:Equity Ratio 0.54

9

Road Ahead

10

• We are starting a 330 MW Shrinagar Hydro project in Uttaranchal .The Salient Features are follows:

Name of the Company : Duncans North Hydro Power Company Ltd

Location : Shrinagar, Uttaranchal

Project : 330 MW Hydro Project on Alaknanda River

Project Cost : Rs 1650 Crores

Existing Sponsors : Synergics Hydro Asia Ltd

11

• Setting up Separate Trading Company and approaching CERC for a trading license

• Approaching SERCs for 2nd Distribution Licenses

• Approaching SEBs for Distribution under Franchisee Scheme

12

Generation

Project Fuel Capacity (MW)

Capital outlay (Rs Crs)

Jojobera Coal 120 350

Shrinagar hydro project (Uttaranchal)

Hydro 330 1650

Total 450 2000

Generation Plans

Projects Under Review

• Interest in Dabhol Power Project.

• TPC to focus on Captive Power Plants for Industrial Consumers

13

• The JV ( with Powergrid Corporation) company is renamed “Powerlinks

Transmission Ltd” (Powerlinks)

• The grant of Transmission License for Powerlinks has been approved by

CERC

• Supply Contracts under finalisation

• Financing Offers received from Lenders in the range of 8 to 8.5 % which

is lowest for a project financed investment

• Financial Closure expected by 31st December 2003

Tala Project

14

Setting Standards in Emissions

180

100

54

27

2420

0

20

40

60

80

100

120

140

160

180

Me

tric

To

nn

es

pe

r D

ay

World Bank IFC USA Poland TPC, Trombay Sweden

International SO2 Emission Limits

•TPC’s Trombay plants operate under environmental norms ( SO2), which are more stringent than IFC norms.

15

Emission Permitted Actual

Sulphur di-oxide 24 tonnes/ day 23 tonnes/ day

Particulate Matter 150 mg/ NM3 50 mg/ NM3

Ash generation 500 tonnes/day 50 tonnes/day

Environment friendly Trombay Thermal Power Station

16

Pumped Storage Operation at Bhira

• The Pumped Storage at TPC’s Bhira Station designed to pump water during off peak period and meet peak load demand

• Availability Based Tariff regime will enable TPC to use cheap power during offpeak to pump water and sell power from the Pump Storage at high price during peak time

• This will enable TPC to sell about 113 additional Mus resulting in profit of about Rs 15 Crs

17

Standby charges

BSES

• As per the High Court/ Supreme Court order, BSES to pay the balance

Standby arrears of Rs 242 Crores (for the period upto June 03)

• BSES to continue to pay monthly standby charges of Rs 16.5 Crores @

50% from July 03

TPC

• TPC to continue to pay Rs. 16.5 crores per month for as Standby

Charges (50 %)

• Supreme Court has directed MERC to examine the issue again

• Interim order of the Mumbai High Court to continue to apply till MERC

decides on the issue.

18

Other Divisions

19

Power System Divisions

Orders in Hand : Rs 296 Crs (Rs 159 Crs in the previous year)

(Rs. Crores)

Apr - Sep FY 03 (Act)

Apr - Sep FY 04 (Act)

10 Turnover 34

20

Strategic Electronics Divisions

Major win in design programmers for Army & Air force missile launcher

• Orders and LOI in hand are in excess of Rs 102 Crores

(Rs. Crores)

Apr - Sep FY 03 (Act)

Apr - Sep FY 04 (Act)

18 Revenue 25

21

TATA MBRL (PINAKA) ROCKET

LAUNCHER

The Tata MBRL (Pinaka) Launcher

being presented during the Republic

Day Parade 2003, which has been

cleared for production &

induction into the Indian Army

Strategic Electronics Divisions (Contd.)

22

Broadband

Crossed Rs 2 Crs recurring revenue per month

Launched MPLS VPNs on Mumbai – Delhi with partner networks

First Video-over-IP broadcast

Cumulative PBT positive

(Rs Crores)

Apr - Sep FY 03 (Act)

Apr - Sep FY 04 (Act)

NA Revenue 14

23

Community Development

24

Initiatives towards Community Development

• Plantation of 7.2 Lakh saplings (against 6.5 Lakhs) completed in the catchment area

• 1 Lakh fingerlings were released in village ponds

• 7 Medical camps were held in the Hydro head works villages and over 1600 patients were treated.

• Medical camp was organized at Kondali village in Jamshedpur and 140 patients were treated

25

Share Price Performance

26

Share Price and Price Earnings

P/E TableTata Power BSE Sensex!

FY03 EPS 26Share Price 216 4741P/E 8 17

Share Price Comparison Tata Power BSE Sensex

Price in Apr 1 114 3081Price in Oct 22 216 4741% Rise 89% 54%

90% jump in the share price,

resulting in a out performance

of almost 70% vis-à-vis the

SENSEX.

Tata Power still trading at a

50% discount to the SENSEX

in terms of the PE.

Thank You