India's CESC posts 21% rise in Q1 profit on strong power demand

CESC

04/08/2023 11:05

BENGALURU, Aug 4 (Reuters) - India's CESC  CESC.NS  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  PGRD.NS  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              CESC.NS   8.61    6.26                 12.14           12.25          Strong    9        0.80                     8.63
                                                                                             Buy                                         
 Tata Power Company    TTPW.NS   20.71   12.09                7.18            151.57         Hold      22       1.07                     0.85
 Ltd                                                                                                                                     
 NTPC Ltd              NTPC.NS   10.71   8.20                 4.54            17.59          Strong    15       0.93                     3.29
                                                                                             Buy                                         
 Power Grid            PGRD.NS   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)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
APRIL-JUNE STOCK PERFORMANCE    https://tmsnrt.rs/3KsuGqy
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Manvi Pant in Bengaluru; Editing by Varun H K and Sohini Goswami)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))