CESC's Q4 slightly up with reduced direct costs

The power generation and distribution company, CESC has witnessed marginally positive growth in its year on year net profits, and saw a triple digit growth quarter on quarter beating street estimates.

CESC’s standalone revenue has declined by 3.8 per cent to Rs 1465 crore in Q4FY16 as against Rs 1523 crore in the previous quarter. However, EBITDA has seen an increase of 59.7 per cent from Rs 298 crore to Rs 476 crore amid nearly 50 per cent fall in power and fuel expenses. Net profits have grown still better by 121 per cent to Rs 248 crore as against Rs 112 crore for Q3FY16.

The Year on Year (YOY) revenues have grown by 4.6 per cent from Rs 1401 crore during the corresponding quarter of last year. EBIDTA too has seen a marginal growth of 6 per cent from Rs 449 crore. Year on year Net profit (PAT) stands flat with an increase of just 1.6 per cent from Rs 244 crore.

On yearly basis CESC has posted slightly positive results where its revenues have risen by 4.9 per cent to Rs 6434 crore for the year ended March 2016 as against Rs 6132 crore in March 2015. Net profit too has risen by 1.3 per cent from Rs 698 crore in FY15 to 707 crore in FY16, followed by an increase in tax expenses by 152 per cent from Rs 147 crore to Rs 371 crore in FY16.

CESC Limited has private participation in the generation, transmission and distribution of electrical power. CESC is the only distributor of electricity in Kolkata and Howrah within an area of 567 square kilometers serving around three million consumers. The Company owns three thermal power plants generating 1,225 megawatts of power.

The stock closed nearly 1 per cent up yesterday at Rs 551.9.