CESC, India's oldest power supplying company has reported losses for the third year running. Though the company has managed to cut its losses by 45% over FY99, it has still a long way to go before it bounces back in the black.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
A 25% spurt in interest outgo seems to have adversely affected the company's bottomline. If the company had managed to keep its interest burden at the same levels as FY99, it would have more or less wiped off its losses.
Interestingly, the company's interest burden has consistently grown in the past decade. In FY95 the company's interest outgo stood at Rs 742 m. The tariffs it earns have not kept pace with the rising debt servicing costs.
The only good news from the company comes in the form of improved operating margins.
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