CESC reports more than 21% rise in Q1 profit on strong power demand

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BENGALURU (Reuters) – India’s CESC on Friday reported a more than 21 rise in first-quarter profit, aided by robust power demand in the pre-monsoon and summer months.


The power generation and distribution company posted a consolidated net profit of 3.47 billion rupees ($41.90 million) for the quarter ended June 30, compared with 2.86 billion rupees a year earlier.


Revenue from operations rose 5.07% at 43.10 billion rupees, while total expenses rose 6.61% to 41.94 billion rupees.


For further results highlights, click here.


KEY CONTEXT


Indian states saw severe heat conditions over the quarter, with maximum temperatures hitting 42-44 degrees Celsius over central, northwest, east and north India. This, along with an economic recovery, led to a jump in electricity demand in India.


India’s electricity transmission network supplied almost 131 billion kilowatt-hours (kWh) in April, the fourth-highest monthly amount on record, based on data from the Grid Controller of India’s National Load Despatch Centre.


Last month, peer Power Grid Corporation of India reported a fall in profit, hurt by weak demand in its core transmission business.


PEER COMPARISON


Valuation (next 12 months) Estimates (next 12 months) Analysts’ sentiment


RIC PE EV/EBITDA Revenue growth Profit Growth Mean # of Stock to price target** Div yield (%)


rating analyst


s


CESC Ltd 8.61 6.26 12.14 12.25 Strong 9 0.80 8.63


Buy


Tata Power Company 20.71 12.09 7.18 151.57 Hold 22 1.07 0.85


Ltd


NTPC Ltd 10.71 8.20 4.54 17.59 Strong 15 0.93 3.29


Buy


Power Grid 11.07 7.10 2.67 5.18 Buy 13 0.97 5.93


Corporation of


India Ltd


** The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell


** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT


APRIL-JUNE STOCK PERFORMANCE


— All data from Refinitiv


($1 = 82.8250 Indian rupees)


 


(Reporting by Manvi Pant in Bengaluru; Editing by Varun H K and Sohini Goswami)

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