The government's latest divestment bet in the ETF arena seems to be affected by the Sensex and Nifty movement, which are trading flat today. On Wednesday, Bharat 22 ETF was stuck to its previous day closing price of 37.32, after hitting an intra-day high of Rs 37.45 on the NSE.
The fund comprising 22 firms was listed on the bourses with over 3 percent gains on November 28, 2017. While the fund contains almost all key firms on the indices, it would be interesting to see how much returns the fund can deliver in the long term.
Today, we are picking five firms (covering their profiles and financials) which is the second part of a series of four stories of Bharat 22 ETF firms which will be published this week.
Also read: Bharat 22 ETF lists on BSE, NSE: A sneak peek into top five firms and their financials
Coal India: The state-owned coal mining corporate is the single-largest coal producer in the world and produces around 84% of India's overall coal output.
The firm is spread over eight states in India with 7 wholly owned coal producing subsidiaries and one mine planning and consultancy company.
The company was conferred Maharatna status in 2011. It caters to 98 out of 101 coal-based thermal power plants in India.
It owns 26 technical and management training institutes and 102 Vocational Training Institutes Centres. In FY17, the mining behemoth produced 554.14 million tonnes of coal and increased its production by 15.39 million tonnes over last year. Coal India supplies coal at prices discounted to international prices and thereby insulates Indian coal consumers against price volatility.
NTPC: NTPC is the energy conglomerate and dominant player in power industry which contributes 24% of total power generation in India. It generates electricity via hydro, nuclear and renewable energy sources.
The company has diversified into consultancy, power trading, training of power professionals, rural electrification, ash utilisation and coal mining to strengthen its core business.
The company is conferred Maharatna status in May 2010 and has total installed capacity 51,708 MW (including JVs) with 20 coal-based, seven gas-based stations, 1 hydro-based station and 1 wind-based station. The power generation of the company increased by over 5% and its installed capacity crossed the 50,000 MW mark in FY17.
Power Grid Corporation: The firm is a public sector undertaking with navratna status engaged in transmission of electricity through Inter-State Transmission System. It owns and operates a transmission network of about 142,989 km of inter-State transmission lines as on September 2017 and has 226 sub stations. The other business verticals of the company include consultancy and telecom.
It provides transmission consultancy to more than 150 domestic clients and has presence in more than 20 countries catering to more than 25 clients. In telecom, the company owns and operates 43450 km of telecom network with presence in 662 locations. The company has made a capital expenditure of Rs 1,12,664 crore in FY17 as against capex target of Rs 1,10,000 crore for the XII Plan.
BPCL
State-run Bharat Petroleum Corporation Limited (BPCL) explores for and refines crude oil. The firm manufactures petroleum, petroleum products, lubricants, liquefied petroleum gas, aromatics like benzene and toluene, and other related products. BPCL operates through two segments, Downstream Petroleum; and Exploration and Production of Hydrocarbons. It offers liquid and gaseous fuels, illuminating oils, and other products from crude petroleum or bituminous minerals; lubricants, including automotive engine oils, gear oils, transmission oils, specialty oils, and greases; natural gas; and aviation fuel.
The company also provides industrial fuels and products, such as industrial gases, naphtha, diesel, kerosene, white oil, black oil, furnace oil, bitumen, sulphur, and solvents and special products, as well as industrial lubricants. In addition, it engages in the upstream exploration and production activities with participating interests in 22 blocks in India and internationally. It has refineries at Mumbai and Kochi, LPG bottling plants and lube blending plants.
Its marketing infrastructure includes network of installations, depots, retail outlets, aviation service stations and LPG distributors. The company operates a network of 13,983 retail outlets. It serves public and private sectors; and various government establishments, such as defence, railways, state transport undertakings, state electricity boards, etc.
BPCL also exports its products. The company was formerly known as Bharat Refineries Limited and changed its name to Bharat Petroleum Corporation Limited in August 1977. Bharat Petroleum Corporation Limited was incorporated in 1952 and is based in Mumbai.For the quarter ended September 2017, the firm reported a three-fold rise in net profit to Rs 2,357.4 crore quarter on quarter.
AXIS BANK: Private sector lender Axis Bank provides a suite of corporate and retail banking products. The bank's segments include treasury, retail banking, corporate/wholesale banking and other banking business. Its treasury operations include investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the proprietary account and for customers.
The bank's retail banking constitutes lending to individuals/small businesses and activities include liability products, card services, Internet banking, mobile banking and financial advisory services, among others.
Its corporate/wholesale banking includes corporate relationships not included under Retail Banking, corporate advisory services, placements and syndication, project appraisals, capital market-related services and cash management services.
Its other banking business includes para banking activities, such as third-party product distribution and other banking transactions. The bank reported a profit of Rs 432.38 crore, compared with Rs 319.08 crore a year ago and Rs 1,305.60 crore a quarter ago in Q2 of the current fiscal.
With data inputs from Sameer Bhardwaj
