Indian power company CESC's Q3 profit falls amid higher tax expenses
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India's CESC, a power generation and distribution company, reported a fall in third-quarter profit on Friday, due to higher tax expenses and lower regulatory income.
The company's consolidated profit fell 5.7% year-on-year to 2.65 billion rupees ($30.8 million) for the three months ended Dec. 31.
Total tax expenses rose 27% to 800 million rupees.
Regulatory income, which includes adjustments related to fuel cost, purchase of power and other fixed costs, fell to 3 billion rupees from 5.6 billion rupees a year ago.
The profit before regulatory income and tax was at 620 million rupees in the quarter, against a loss of 1.96 billion rupees a year ago.
Revenue from operations rose 9.8% to 35.61 billion rupees due to higher power generation.
CESC shares fell 4.6% after the result.
KEY CONTEXT
CESC's revenue for the third-quarter was expected to get a boost from higher power generation and lower distribution losses, as per analysts at Elara Capital.
The company's distribution business likely benefited from lower aggregate technical and commercial losses, the brokerage said.
PEER COMPARISON
Valuation Estimates (next 12 Analysts' sentiment
(next 12 months)
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth (%) growth (%) rating* analysts price yield
target** (%)
CESC 13.13 8.52 8.34 12.97 Buy 9 0.84 2.51
Torrent Power 26.06 12.55 9.70 15.34 Hold 8 1.00 1.10
NTPC 13.79 8.87 6.73 9.08 Buy 18 0.74 2.09
Tata Power NULL 12.45 9.20 18.22 Hold 19 0.84 0.53
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
OCTOBER-DECEMBER STOCK PERFORMANCE
-- All data from LSEG Data
-- $1 = 85.9280 rupees
