CESC Ltd announced that its wholly-owned subsidiary, Eminent Electricity Distribution Ltd, has received a Letter of Intent (LOI) to acquire 100% ownership of the power distribution company responsible for electricity distribution and retail supply in the Union Territory of Chandigarh. The ₹871 crore deal is subject to conditions detailed in the LOI and is expected to be finalized within 30 days, according to a stock exchange filing.
For the second quarter ending September 30, 2024, CESC reported a 1.4% year-on-year (YoY) increase in net profit at ₹353 crore, compared to ₹348 crore in the same period last year. Revenue from operations rose by 8% to ₹4,700 crore, up from ₹4,352 crore in the previous fiscal year.
At the operational level, EBITDA jumped 38.7% to ₹896 crore from ₹646 crore in the corresponding quarter of the previous year, with an EBITDA margin improving to 19% from 14.8%. The company’s profitability was supported by a sharp increase in regulatory income, which grew 2.6 times to ₹689 crore.
However, CESC faced challenges from elevated energy costs, which surged by 55.2% YoY to ₹2,543 crore, driven by higher fuel and power procurement expenses. One-time costs also affected operational margins, but the rise in regulatory income helped balance overall performance.
CESC Ltd (Calcutta Electric Supply Corporation) is a leading private sector power utility in India with over a century of experience in electricity generation, distribution, and supply. Headquartered in Kolkata, the company serves millions of customers across its licensed areas, including Kolkata, Howrah, and other regions.
CESC operates multiple thermal power plants, with a total generation capacity of over 1,100 MW, ensuring a reliable and uninterrupted power supply to its consumers. The company is also expanding its presence in renewable energy and distribution through strategic acquisitions and investments. Known for its customer-centric approach, operational efficiency, and strong financial performance, CESC continues to play a vital role in India’s energy sector, catering to the growing demands of urban and industrial hubs.
