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Indian power generation and distribution company CESC Ltd reported a 2.1% rise in quarterly profit on Monday, aided by higher electricity output ahead of summer.

Consolidated net profit for the quarter ended March 31 increased to 4.33 billion rupees ($52.95 million), compared with 4.24 billion rupees a year earlier, the RP - Sanjiv Goenka Group flagship company said in an exchange filing.

Revenue from operations came in at 31.02 billion rupees, compared with 30.11 billion rupees a year earlier, while total expenses rose 9.3% year-on-year.

WHY IT MATTERS

India's power generation grew at the fastest pace in over three decades in the year ended March 2023, a Reuters analysis of government data showed, fuelled by a record rise in output from both coal-fired and renewable plants.

Power demand in the first two months of 2023 jumped 10% from a year earlier.

CESC's revenue grew 13.6% in the year ended March 2023.

The Indian government in March urged power utilities to expand output to ensure adequate supply during the peak summer months. It also directed power utilities to undertake maintenance for their coal-based plants well in advance and run at full capacity to avoid disruptions during this period.

PEERS COMPARISON

Valuation Estimates Analysts' sentiment

(next 12 (next 12

months) months)

RIC PE EV/EBIT Revenue Profi Mean # of Stock to Div

DA growth t rating analysts price yield

growt * target** (%)

h

CESC Ltd 7.83 6.12 4.65 5.05 Strong 12 0.71 9.41

Buy

Tata Power Company - 11.49 8.42 362.9 Hold 21 0.94 0.97

Ltd 9

NTPC Ltd 9.08 7.82 -2.34 13.86 Strong 14 0.85 3.32

Buy

Power Grid 10.37 7.29 1.33 -0.01 Buy 11 0.95 5.24

Corporation of India

Ltd

** The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JAN-MARCH STOCK PERFORMANCE

-- All data from Refinitiv

($1 = 81.7800 Indian rupees)