The Hindu Business Line : Merged associates boost BSES net to Rs 93.30 cr

AMALGAMATION of Samalkot Power Station in Andhra Pradesh and Reliance Salgaocar Power Company with itself helped BSES Ltd on Wednesday report a six times jump in third quarter profit.

For the quarter ended December 31, 2003, the Reliance group company has reported a net profit of Rs 93.30 crore compared to Rs 14.60 crore in the previous year. Electricity sales were Rs 1,093.68 crore, a year-on-year jump of more than 60 per cent from Rs 680.61 crore. The company board has recommended a quarterly dividend of Re one per share of face value Rs 10, a company release said. BSES shares fell nearly 5 per cent on the BSE to close at Rs 499.80.

In a bid to expand its distribution reach, BSES has sought distribution rights in two divisions in Nashik, Aurangabad circle, Nagpur urban zone, Punjab urban zone and Vashi and Bhandup circles. It has also sought permission to set up its own distribution infrastructure in BEST's distribution areas in Mumbai and New Delhi Municipal Corporation's areas of supply.

BSES has applied to the Central Electricity Regulatory Commission for an inter-State energy trading licence for its associate Reliance Energy Trading Private Ltd.

The company has also restarted its power station in Kerala, which is now working at 78 per cent capacity. The troubled generation project has finalised a debt-restructuring package with its lenders. Its flagship Dahanu power station has achieved a plant load factor of 99.97 per cent and generated 3,293 million units, an increase of 13 per cent, in the first nine months of the current year. BSES also bought 2,430 million units of energy from external sources, 8 per cent more than that purchased during the first nine months of the previous year.

The company's income from EPC and contracts during the quarter rose to Rs 150 crore (Rs 95 crore) and other income increased to Rs 44 crore (Rs 17 crore).

Total expenditure during the period has shot up 45 per cent to about Rs 835 crore compared to Rs 575 crore previously. Expenses rose on account of higher fuel cost at Rs 264 crore (Rs 115 crore), staff cost at Rs 64 crore (Rs 28 crore) and provisions at Rs 100 crore (Rs 59 crore). Interest expenditure rose to Rs 29 crore (Rs 19 crore) and depreciation increased to Rs 115 crore (Rs 67 crore).