🏢 Company Snapshot: BF Utilities Ltd
BF Utilities Limited is part of the Kalyani Group and operates in two core segments – Infrastructure Development (primarily toll-based road projects through its subsidiaries) and Renewable Energy (Wind Power Generation). The company’s key assets are linked to the Nandi Infrastructure Corridor Enterprise and related toll projects in Karnataka. It’s a small-cap stock with limited but focused business interests.
📊 Q3 FY25 Highlights: What You Need to Know!
Here’s a quick rundown of BF Utilities’ performance for the quarter ending December 31, 2024:
✅ Revenue from Operations: ₹20,983.50 lakhs
✅ Total Income (with other income): ₹21,634.21 lakhs
✅ Profit Before Tax (PBT): ₹11,399.54 lakhs
✅ Net Profit: ₹8,392.70 lakhs
✅ Earnings Per Share (EPS): ₹9.21 (vs ₹10.39 in Q2 FY25)
📉 Compared to last quarter:
Revenue and profit both declined. Q2 had revenue of ₹22,134 lakhs and net profit of ₹9,100 lakhs.
📈 9-Month Performance (Apr–Dec 2024):
Despite a weak Q3, the 9-month net profit came in at a strong ₹25,430 lakhs, up from ₹22,372 lakhs YoY, with an EPS of ₹29.42.
🏗️ Segment Performance
🌀 Wind Energy: Revenue dropped to ₹286 lakhs (vs ₹997 lakhs in Q2)
🚧 Infrastructure (Toll Projects): Remained steady at ₹21,348 lakhs
✅ Infrastructure continues to be the cash cow for the company.
📢 Business Developments
🛑 Toll Operations Ended:
One of its subsidiaries, Nandi Highway Developers Ltd (NHDL), concluded toll collection on September 7, 2024, following the expiry of its concession agreement.
💼 Land Acquisition Advance:
BF Utilities gave ₹3,700 lakhs to NECE (step-down subsidiary) for land purchase — this has been pending for over 14 years! Company claims it’s recoverable — auditors aren’t so sure.
💥 Investor Drama in NECE:
A foreign investor, AIRRO Mauritius Holdings V, triggered a put option to exit NECE. BF Utilities disputes this claim. The situation is unresolved and might affect financial liabilities if enforced.
⚠️ Auditor’s Red Flags
🚨 Adverse Opinion Issued:
Auditors expressed serious concerns over:
- Non-recognition of liability related to investor put option in NECE
- The ₹3,700 lakhs advance which remains unutilized
👉 Result: Financial statements not fully compliant with Indian Accounting Standards (Ind-AS)
This is not just a disclaimer — it’s a major red flag that could impact investor trust.
🔮 What’s Next?
Looking ahead, here are key things to watch:
🌐 Resolution of investor exit issue — if this goes south, liability could surge
🏗️ Utilization of land acquisition advance — needs urgent clarity
📉 Post-toll strategy for NHDL — with toll revenue ending, how will growth continue?
📌 Shareholding & Market Buzz
📊 The company hasn’t reported any change in shareholding pattern this quarter.
📉 No info on stock reaction yet, but given the auditor’s tone and falling profit, a cautious to negative short-term sentiment is likely.
✍️ Final Take
BF Utilities posted a decent profit, but the shine fades quickly with auditor concerns and unresolved investor disputes looming large. The infrastructure segment remains robust — but the future hinges on how these risks are managed.
🧩 Verdict: Mixed bag – Stable core biz, but financial clarity & governance issues need addressing.
Stay tuned for updates as this partnership unfolds. Got thoughts or questions about BF Utilities ? Drop a comment below! 🚢📈
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