Indian power company CESC's Q2 profit rises on better distribution

Torrent Power

12/11/2024 08:59

BENGALURU, Nov 12 (Reuters) - India's CESC  CESC.NS , a power generation and distribution company, reported
an increase in second-quarter profit on Tuesday, due to fewer leaks during distribution and bill collection.
    The Kolkata-based company said its consolidated net profit rose 1.4% year-on-year to 3.53 billion rupees ($41.8
million) for the quarter ended Sept. 30.
    Revenue from operations rose 8% to 47 billion rupees. 
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3MJ09R
    
    KEY CONTEXT
    The country's power demand grew only 1.1% year-over-year in the September quarter, compared with a 9.7% increase
during the first half of the year, as above-normal rainfall resulted in lower temperatures.
    That led to Tata Power  TTPW.NS  missing profit expectations for the quarter.
    However, according to Elara Capital, CESC's distribution business likely benefited from lower aggregate
technical and commercial (AT&C) losses.
    AT&C losses are a combination of energy losses, including due to theft and billing inefficiency, as well as
commercial losses, which include payment defaults and collection inefficiency.
    Torrent Power  TOPO.NS  is due to report its quarterly results on Wednesday.
    
 
 PEER COMPARISON 
                                 Valuation       Estimates (next 12       Analysts' sentiment               
                                 (next 12        months)                                                    
                                 months)                                                                    
                      RIC        PE      EV/EBI  Revenue     Profit       Mean     # of      Stock to       Div
                                         TDA     growth (%)  growth (%)   rating*  analysts  price          yield
                                                                                             target**       (%)
 CESC                  CESC.NS   13.08   8.90    9.03        12.46        Buy      9         0.89           2.46
 Torrent Power         TOPO.NS   30.88   14.97   11.04       20.81        Hold     8         1.16           0.94
 NTPC                  NTPC.NS   16.35   10.11   7.22        9.06         Buy      17        0.90           1.73
 Tata Power            TTPW.NS   30.71   14.16   9.96        20.58        Hold     20        0.99           0.46
    
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above
the PT
    
JULY-SEPTEMBER STOCK PERFORMANCE
 
    
-- All data from LSEG Data
-- $1 = 84.4025 rupees


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 (Reporting by Anuran Sadhu in Bengaluru; Editing by Savio D'Souza)
 ((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))