Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
BSES Ltd net up marginally by 2.8% - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jan 31, 2000

    BSES Ltd net up marginally by 2.8%

    BSES Ltd has reported a net profit of Rs 808.9 m for the 3QFY2000, which is an increase of only 2.8% over the 3QFY99 figure of Rs 787 m. Its net sales from sale of electrical energy went up by 20.6% for the 3QFY2000 to Rs 5,103 m.

    BSES Ltd a power distribution and generating company reported a turnover of Rs 23.5 bn for FY99.

    (Rs m) 3QFY2000 3QFY1999 Change
    Net Sales - sale of electrical energy 5103.1 4231 20.6%
    Income of EPC, Contracts, Computer and International Divisions 425.7 1107 -61.5%
    Other Income 179.9 262.1 -31.4%
    Total Expenditure 4,069.9 4,021.1 1.2%
    Interest 198.0 208.1 -4.9%
    Depreciation 471.9 433.7 8.8%
    Profit before Tax 968.9 937.0 3.4%
    Tax 160.0 150.0 6.7%
    Profit after Tax/(Loss) 808.9 787.0 2.8%
    Net profit margin (%) 15.9% 18.6%  

    Though electrical energy sales showed a buoyant growth this came about not from any increase in the number of units sold or from any increase in tariff, it came about from the increase in fuel prices which as per law the company can pass on to the customers.

    Income from EPC, contracts, computer and international divisions fell by 61.5% in the 3QFY2000 to Rs 426 m from Rs 1,107 m in the 3QFY99. According to a newspaper article its order book stands at Rs 13 bn as on the 31st December'99 and hence contract revenues in the 4Q is likely to go up. Its other income fell by 31.4% for the 3QFY2000 to Rs 179.9 m. Its total expenditure rose by 1.2% in the 3QFY2000 to Rs 4,070 m from Rs 4,021 m in the 3QFY99.

    Interest charges for the 3QFY2000 were down 4.9% to Rs 198 m due to pre-payment of loans and depreciation costs during the same period rose 8.8% to Rs 472 m. The Dahanu Power Station operated at a plant load factor (PLF) of 88.81% during the nine month period ended 31st December 1999 as against a PLF of 76.59% during the first nine months of FY99. This was due to higher generated electricity in Mumbai.

    Some of the new projects of BSES includes BSES TeleCom which is a wholly owned subsidiary of BSES and has got a license from the DOT to take up the business of an internet service provider. This is to be launched in Mumbai shortly. Another project BSES Kerala Power, which is a joint venture with the Kerala State Industrial Development Corporation in which BSES has a 80% stake has commissioned all the three units of the 165 MW naptha-based power station at Kochi. BSES TeleCom has alongwith the National Grid International has participated in a tender floated by the Maharashtra State Electricity Board for developing fibre optic backbone on the transmission system of Maharashtra State.

    Market View:
    BSES has been rated a "Sell" by many analysts as the earnings growth from its main business is not very attractive. Its Kerala joint venture is unlikely to show any benefits over the next three years and its decision to become an internet service provider without any past experience and tie-up is not likely to show results. However value investors like the utility due to its steady revenue stream.



    Equitymaster requests your view! Post a comment on "BSES Ltd net up marginally by 2.8%". Click here!


    More Views on News

    NTPC: Higher Tax Provision Impacts Profits (Quarterly Results Update - Detailed)

    Mar 30, 2017

    NTPC declared results for the quarter ended December 2016. The company reported revenue growth of 10.9% while profits declined by 7.5% YoY.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (Close)


    • Track your investment in RELIANCE INFRA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks



    Detailed Quarterly Results With Charts