POWER

CESC’s steady recovery in the March quarter brings respite

Shares of CESC Ltd hit a 52-week high on Thursday in early deals on the National Stock Exchange. CESC announced its quarter and year ending March results on Wednesday after market hours. Here, the performance of subsidiaries and the modest recovery in the standalone business is encouraging.

Overall, CESC’s reported consolidated net profit for the March quarter declined by 3.6% year-on-year to ₹423 crore. This was partly helped by a modest 8% growth in the company’s standalone net profit. Among the subsidiaries, Dhariwal Infrastructure Ltd reported a profit after tax of ₹31 crore for Q4, taking the profit for financial year 2021 (FY21) to ₹106 crore. This compares favourably with a loss of ₹10 crore incurred in FY20.

Further, Haldia Energy Ltd reported a profit after tax of ₹361 crore for FY21, up 14% year-on-year (y-o-y). On the flip side, Crescent Power & Surya Vidyut’s net profit declined by 15% y-o-y to ₹22 crore in FY21.

“We have revised our earnings for FY2022E (+7.9%) and for FY2023E (+7%), factoring improved profitability at Dhariwal and lower losses at recently acquired distribution circles,” said analysts from Kotak Institutional Equities in a report on 17 June.

Source
Livemint
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