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BSES 3QFY01 net dips 5% - Views on News from Equitymaster
BSES Limited, India's leading power generation and distribution company, has recorded a 5% decline in its 3QFY01 bottomline to Rs 769 m. The company's turnover growth was a marginal 7% during the period. A 36% jump in its expenditure pruned its bottomline.
(Rs m)
3QFY00
3QFY01
Change
9m FY00
9m FY01
Change
Sale of electrical energy
5,103
5,466
7.1%
14,558
16,735
15.0%
EPC, Contracts, Computer Service Income
426
1,336
213.8%
3,202
3,592
12.2%
Other Income
180
210
16.8%
589
581
-1.2%
Expenditure
4,070
5,544
36.2%
13,424
16,395
22.1%
Operating Profit (EBDIT)
1,459
1,257
-13.8%
4,336
3,933
-9.3%
Operating Profit Margin (%)
28.6%
23.0%
29.8%
23.5%
Interest
198
145
-26.7%
666
507
-23.8%
Depreciation
472
494
4.6%
1,416
1,444
1.9%
Profit before Tax
969
829
-14.5%
2,842
2,563
-9.8%
Tax
160
60
-62.5%
640
330
-48.4%
Profit after Tax/(Loss)
809
769
-5.0%
2,202
2,233
1.4%
Net profit margin (%)
15.9%
14.1%
15.1%
13.3%
No. of Shares (eoy) (m)
137.9
137.9
137.9
137.9
Earnings per share*
21.3
21.6
*(annualised)
Current P/e ratio
10.5
The company's increasing cost of electrical energy purchased continued to be its bane. The cost of electrical energy jumped 40% during the quarter to Rs 2,627 m.
On the operational front however, the company managed to prune its interest costs by 27% in 3QFY01, and by 24% on a nine month consolidated basis. Another redeeming factor in its 3QFY01 results was a whopping 214% jump in the income from EPC, contracts and the computer division.
On a nine month consolidated basis, the company's sale of electricity revenues improved by 15%, and its bottomline showed a small improvement of 1% YoY.
At the current price of Rs 226, the stock trades at a P/e multiple of 10.5 times its nine month annualised FY01 earnings.
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