CESC · Power
CESC Ltd. reported revenue of ₹4,863 cr for April to June 2024, +12.8% on the year and +43.6% on the quarter.
Operating profit (EBITDA) was ₹371 cr, a margin of 7.6%, −917 bps on the year and −448 bps on the quarter. Operating costs grew +25.3%, faster than revenue at +12.8%, so operating profit grew less than sales.
Net profit was ₹388 cr, +5.4% on the year and −6.5% on the quarter, with earnings per share of ₹2.85. Profit before other income, one-offs and tax fell 317.2%, so 323 points of the headline growth came from outside the core business. The tax rate was 21% against an average of 14% over the previous 4 quarters, which weighed on profit this quarter.
Most power earnings are regulated returns on equity, with fuel costs passed through, so revenue can swing with fuel prices while profit moves far less. The quarterly statements do not carry plant load factor, capacity added and regulated equity; those come with the filing read.
On earnings per share of ₹10.62 over the last four quarters, the stock at ₹135.94 trades at 12.8 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow, the auditor's review, segment results, one-off items line by line and what management said on the call.
Most of the profit growth did not come from the business. What lifted the gap?
Reported profit +5.4% on the year; profit before other income, exceptional items and tax −317.2%.
Source: Quarterly statements
Half or more of pre-tax profit came from other income. What is it, and does it repeat?
Other income was 151% of profit before tax, against 74% a year earlier.
Source: Quarterly statements
Operating margin fell sharply on the year. Pricing, input costs, or mix?
EBITDA margin 7.6%, −917 bps on the year (−448 bps on the quarter).
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹4,352 cr | ₹3,244 cr | ₹3,387 cr | ₹4,863 cr | ₹4,700 cr | ₹3,561 cr | ₹3,877 cr | ₹5,202 cr | ₹5,267 cr | ₹4,005 cr | ₹4,096 cr | ₹5,485 cr |
| YoY | — | — | — | +13% | +8% | +10% | +14% | +7% | +12% | +12% | +6% | +5% |
| EBITDA margin | 14.8% | 10.7% | 12.1% | 7.6% | 19.1% | 17.1% | 20.9% | 16.6% | 20.1% | 19.5% | 18.1% | 16.3% |
| Other income, % of PBT | 92% | 170% | 154% | 151% | 41% | 109% | 63% | 61% | 27% | 67% | 81% | 47% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 21% | 17% | 1% | 21% | 19% | 22% | 17% | 20% | 21% | 21% | 30% | 23% |
| Net profit | ₹363 cr | ₹301 cr | ₹415 cr | ₹388 cr | ₹373 cr | ₹282 cr | ₹385 cr | ₹404 cr | ₹448 cr | ₹304 cr | ₹459 cr | ₹419 cr |
| YoY | — | — | — | +5% | +3% | −6% | −7% | +4% | +20% | +8% | +19% | +4% |
| Core profit YoY | — | — | — | −317% | +618% | — | — | — | +51% | — | −29% | +48% |
| EPS | ₹2.63 | ₹2.12 | ₹3.02 | ₹2.85 | ₹2.66 | ₹2.00 | ₹2.81 | ₹2.92 | ₹3.23 | ₹2.15 | ₹3.31 | ₹3.03 |
| Flags | 1 | 1 | 2 | 3 | ✓ | 1 | 1 | 1 | ✓ | 1 | 2 | ✓ |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
CESC Ltd. reported revenue of ₹4,863 cr (+12.8% on the year) and net profit of ₹388 cr (+5.4% on the year) for April to June 2024.
Profit before other income, exceptional items and tax moved −317.2% on the year, against +5.4% for reported profit.
3 checks raised a question: Most of the profit growth did not come from the business. What lifted the gap?
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Numbers as filed with the exchanges, read by rules. Every flag is a question with its source, not an accusation. FinMinutes is a financial data and analytics platform; nothing here is a recommendation to buy, sell or hold any security. How each check works.