India Inc’s energy spend up 11.9%

The aggregate expenditure of 286 companies on power and fuel increased by 11.9 per cent to Rs 10,132 crore during April-Sept 2004 from Rs 9,055 crore during April-Sept 2003.

According to the data provided by these firms on power and fuel costs, the total expenditure of the sample companies rose by 22.9 per cent to Rs 60,350 crore in April-Sept 2004 from Rs 49,075 crore in April-Sept 2003. The decreasing share of power and fuel in total expenditure not only increases margins, but also helps control the cost. The average cost of power and fuel accounts for just over16.7 per cent of the total expenditure and even a small decline here influences bottomline significantly.