Indian power company CESC's Q3 profit falls amid higher tax expenses

Torrent Power

10/01/2025 10:03

BENGALURU, Jan 10 (Reuters) - India's CESC  CESC.NS , a power generation and distribution company, reported
a fall in third-quarter profit on Friday, due to higher tax expenses and lower regulatory income.
    The company's consolidated profit fell 5.7% year-on-year to 2.65 billion rupees ($30.8 million) for the three
months ended Dec. 31.  
    Total tax expenses rose 27% to 800 million rupees.
    Regulatory income, which includes adjustments related to fuel cost, purchase of power and other fixed costs,
fell to 3 billion rupees from 5.6 billion rupees a year ago.
    The profit before regulatory income and tax was at 620 million rupees in the quarter, against a loss of 1.96
billion rupees a year ago.
    Revenue from operations rose 9.8% to 35.61 billion rupees due to higher power generation.
    CESC shares fell 4.6% after the result. 
        
  
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3O60GY
    
    KEY CONTEXT
    CESC's revenue for the third-quarter was expected to get a boost from higher power generation and lower
distribution losses, as per analysts at Elara Capital.  
    The company's distribution business likely benefited from lower aggregate technical and commercial losses, the
brokerage said.   
    
 
 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   13.13   8.52    8.34        12.97        Buy      9         0.84           2.51
 Torrent Power         TOPO.NS   26.06   12.55   9.70        15.34        Hold     8         1.00           1.10
 NTPC                  NTPC.NS   13.79   8.87    6.73        9.08         Buy      18        0.74           2.09
 Tata Power            TTPW.NS   NULL    12.45   9.20        18.22        Hold     19        0.84           0.53
    
 * 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
    
OCTOBER-DECEMBER STOCK PERFORMANCE
 
    
-- All data from LSEG Data
-- $1 = 85.9280 rupees



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CESC Oct-Dec stock performance    https://tmsnrt.rs/4ac1DTU
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 (Reporting by Anuran Sadhu in Bengaluru; Editing by Mrigank Dhaniwala)
 ((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))