BSES Q2 posts Rs 62 cr net

Our Corporate Bureau

Mumbai, Oct 30: The Mumbai-based utility BSES’s net profit has shown a paltry increase at Rs 62.39 crore for the second quarter ending September 30, 2001 compared to previous year’s Rs 60.04 crore. Its sales stood at Rs 589.69 crore compared to Rs 582.69 crore.

BSES, which has been in news for its attempt to pick up Enron equity in the distressed Dabhol project, has succeeded in reducing expenditure at Rs 603.76 crore from the previous years’ Rs 642.15 crore. The staff cost has been reduced at Rs Rs 26.04 crore from Rs 32.10 crore during the same period.

For the six motnh period BSES’s net profit has risen at 10.7 per cent to Rs 162.03 crore from Rs 146.42 crore for the corresponding previous year. The total income for the half year ended September 30 has increased to Rs 1,407.42 crore from Rs 1,389.71 crore.

According to BSES press release, the Reliance Group of Companies hold its equity at 29.75 per cent, while 37.31 per cent has been held by UTI, LIC, IDBI, GIC and its subsidiaries, 0.41 per cent by banks, 1.67 per cent by mutual funds, 7.45 per cent by foreign institutional investors and NRIs, 8.10 per cent by GDR holders, 0.97 per cent by various other corporate bodies and 14.34 per cent by individuals.

The company’s depreciation has increased to Rs 52.69 crore from previous year’s Rs 47.50 crore. “The company’s electricity busines is governed by Electricity Supply Act, 1948 therefore depreciation has been provided as required under that Act. The generation undertaking is eligible for the tax holiday under section 801A of the Income Tax Act 1961 for the total period of 10 consecutive years out of 15 years and hence the effective tax rate for the company as a whole is governed by section 115JB of the Income Tax Act 1961.
Deferred tax liability for the quarter and half year ended has been provided based on the estimate and any excess/short provision shall be suitably adjusted in the following quarters,” it added.

Pending adjudication of its dispute of standby charges with Tata Power, it has deposited Rs 28.50 crore to the Maharashtra Electricity Regulatory Commission beyond the payment made in the corresponding half of the previous year, which has not been provided, since it has not been acknowledged as a liability by the company.

The Crisil has assigned AAA rating to the company’s Rs 300 crore bonds issue.