Backed by 13 per cent tariff hike, power utility CESC Ltd., an RP-Sanjiv Goenka Group company Tuesday reported a 137.5 percent jump in its net profit at Rs.2.66 billion for the quarter ended March 31, 2012 as against Rs.1.12 billion during the same period the previous year.
The Kolkata-based company got the nod from the West Bengal Electricity Regulatory Commission in March to hike its average tariff by 13 percent retrospectively for 2011-12.
The regulatory body directed the power the Calcutta Electric Supply Corporation (CESC) to recover the retrospective tariff hike in 48 monthly instalments.
"This quarter (January-March) PAT (profit after tax) is around Rs.135 crore (Rs.1.35 billion) and the additional Rs.130-odd crore (Rs.1.3 billion) is a reflection of the tariff hike," Vice-Chairman Sanjiv Goenka said.
Company's net sales for the quarter under review was Rs.13.48 billion against Rs.9.08 billion for the same period a year ago.
The board of the company Tuesday approved the 1,920 MW Balagarh power project in West Bengal.
"The project would see an investment of Rs.105 billion, which would be from internal accruals," Goenka informed.
The project, which would be set up on 997 acres of land already owned by the company in Hooghly district, is likely to get commissioned by 2016-17.
"We have asked the state government to help us with coal linkages for the plant ... time frame would be 36 months after getting the coal linkages," Goenka said.