What buoyed the bottomline was other income. The other income (including income from contracts and computer division and EPC division) shot up to Rs 235.37 crore compared to Rs 65.67 crore in first half of 1996-97. The income from the division in second quarter was Rs 75.59 crore.

The company's tax outgo has doubled to Rs 35 crore compared to Rs 17.50 crore paid in the previous half.

Due to the agreement signed with Tata Electric Companies (TEC), BSES cannot supply power to Western India regional grid and has to bring the power generated to its licensed area. The power was supplied to the grid at Rs Rs 1.80/unit. In the first half of previous year, sale to the grid was Rs 87.49 crore compared to Rs 1.71crore in the current year. Since February, 1998, BSES has been paying standby charges to TEC at Rs 3.5 crore per month and it has resulted in outflow of Rs 21 crore during the first half.

In the second quarter of the year, OPM was 25.3 per cent compared to 26 percent in the first quarter. On first half to first half basis, the OPM at 25.8 per cent was same as first half of last year.

With the reasonable return being lower (16.3 per cent compared to 17.85 per cent), for the fourth year in running, BSES should be able to post clear profit in excess of reasonable return.