CESC Q1 Results Review - Cashflow To Improve In Discom: ICICI Securities

ICICI Securities Report

CESC Ltd. reported a revenue of Rs 55 billion, up 21% YoY, Ebitda of Rs 11 billion, up 7% YoY, and profit after tax of Rs 3.8 billion, up 9% YoY. Revenues primarily grew due to higher sales in its Kolkata License Area (+8% YoY) and Noida (+24% YoY) and higher power purchase cost (pass through; plus 44% YoY).

Also, the higher merchant prices have benefitted its subsidiary – Dhariwal. The subsidiary reported a profit of Rs 1.1 billion (versus Rs 720 million in the same quarter previous year). The best news during the quarter was recovery resuming for fuel and power purchase cost.

As a result, cash flow from its distribution asset should improve in FY25E. On the renewables, CESC has taken a number of steps:

1. signed framework agreement with wind OEMs.

2. Accelerating the pace of land acquisition for 3GW.

We reiterate 'Buy' with a revised target price of Rs 207.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.