CESC: S/A miss on higher-than-expected expenses (CESC IN, Mkt Cap USD1.3b, CMP INR756, TP INR890, 18% Upside, Buy) DFs' performance improves; Dhariwal remains profitable CESC's S/A 1Q results highlight a modest profitability improvement. Volumes for S/A improved 23% YoY (on a low base), but S/A PAT was up just 3% YoY. Consol. PAT, on the other hand, rose 37% YoY on lower losses in its Distribution Franchise (DF) business. Dhariwal has turned profitable and DFs are showing signs of a tur...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
CESC (IN), a company active in the Conventional Electricity industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date July 27, 2021, the closing price was INR 833.20 and its potential ...
Q3FY20 Result highlights CESC operated its three key power plants Budge Budge (standalone), Halida and Dhariwal (operating under subsidiaries) at a PLF of 69.2% (vs 78.6% in Q3FY19), 87.4% (vs 88.2% in Q2FY19) and 67% (vs 73% in Q2FY19) in Q3FY20 whereas T&D loss for Kolkata distribution license area (KLA) was 9% in 9mFY20 (vs 9.7% in H1FY19). Note that PLF of Budge Budge along with reduction in T&D losses are key to incentive incomes/savings for standalone business. However, norms for new ...
CESC: S/A gen muted; Dhariwal improves on new PPA (CESC IN, Mkt Cap USD1.4b, CMP INR728, TP INR970, 33% Upside, Buy) Dhariwal losses reduce, DFs’ performance improves CESC’s third-quarter results highlight the benefit of the improved performance of its DF businesses and lower losses at Dhariwal, with consol. PAT increasing 12% YoY. S/A PAT grew 2% YoY (in-line). We expect the performance at Dhariwal and DFs to continue to improve. Despite factoring in the tightening of norms at Haldia a...
CESC: S/A gen. muted; Noida up on carrying cost recovery (CESC IN, Mkt Cap USD1.4b, CMP INR760, TP INR957, 26% Upside, Buy) S/A PAT grew ~2% YoY to INR2.8b (in-line). Sales were up just ~2% YoY to 2.9BU. T&D losses are estimated at ~9%. Consol. PAT was up ~13% YoY to INR3.6b in the quarter on carrying cost recovery at Noida (~INR150-200m). For 1HFY20, PAT was up 8% YoY to INR4.9b. Profits at Noida rose YoY to INR790m (v/s est. INR450m) on favorable order leading to carrying cost recovery...
Buoyed by outperformance in the US, the MSCI ACWI is the only broad global index that has yet to make a lower low relative to the lows set in June. This deterioration for ACWI ex-US, EAFE, and EM, continued bearish-leaning indicators, and continued downside volatility in bond yields leads us to remain cautious and concerned that global equities remain vulnerable and could be poised for additional weakness moving forward. • Additional bearish-leaning developments. In addition to the concerns ...
Q1FY20 Highlights CESC operated its three key power plants Budge Budge (standalone), Halida and Dhariwal (operating under subsidiaries) at a PLF of 96.2 (vs 97.7% in Q1FY19), 87.9% (vs 92.6% in Q1FY19) and 70.8% (vs 80.6% in Q1FY19) in Q1FY20 whereas T&D loss for Kolkata distribution license area was 9% in Q1FY20 (vs 9.7% in Q1FY19) . PLF of Budge Budge along with reduction in T&D losses are key to incentive incomes for standalone business. However, norms for new tariff period FY19-FY20 are...
CESC: Standalone ops gain from higher demand; subs weak; FCF generation increasing rapidly; Reiterating Buy (CESC IN, Mkt Cap USD1.4b, CMP INR763, TP INR910, 19% Upside, Buy) Standalone (S/A) PAT grew by a healthy ~18% YoY to INR2.2b (our estimate: INR1.9b), led by higher sales (up ~8% YoY to 3.1BU) due to strong demand (likely because of seasonal factors). T&D losses are estimated to have remained steady at ~9-10%. CESC has started reporting consol. quarterly performance from this quarter....
Q4FY19 Highlights CESC operated its three key power plants Budge Budge (standalone), Halida and Dhariwal (operating under subsidiaries) at a PLF of 90%/92%,74%/88% and 43%/61% in Q4FY19/FY19 respectively whereas T&D loss for Kolkata distribution license area was 9% in FY18. Besides, it has been able to reduce T&D losses by 3% in is distribution franchisee business PLF of Budge Budge and Haldia power plants along with reduction in T&D losses are keys to incentive income. However, norms for n...
CESC: Dhariwal turning around, DF operations improving; FCF generation increasing rapidly; Re-iterate Buy (CESC IN, Mkt Cap USD1.2b, CMP INR661, TP INR841, 27% Upside, Buy) FY19 consol. adj. PAT grew 43% YoY to INR11.8b (consol. numbers are reported annually) v/s our est. of INR10.1b. The strong performance was driven by sharp reduction in losses at Dhariwal and lower losses in distribution franchisee (DF). Standalone (S/A): PAT grew ~8% YoY to INR9.4b. T&D losses were lower ~70bp YoY t...
Q3FY19 Highlights CESC operated its three key power plants Budge Budge (standalone), Dhariwal and Haldia (operating under subsidiaries) at a PLF of 78.6% (+100bps), 88.2% (+101 bps) and 72.9% (+3590 bps) in Q3FY19 respectively. T&D loss for distribution license area was 9.8% (-100bps) in Q3FY19. PLF of Budge Budge along with reduction in T&D losses (compared to norms) are key to CESC standalone earnings CESC has filed petition for new tariff period FY19-FY20. We expect the tariff order and n...
CESC: Lower T&D losses drive performance; dividend raised (CESC IN, Mkt Cap USD1.3b, CMP INR692, TP INR800, 16% Upside, Buy) CESC's standalone (S/A) PAT grew ~16% YoY to INR1.8b (our estimate: INR1.5b) in 3QFY19 on account of lower T&D losses and interest cost. Sales in the Kolkata distribution circle declined 2.1% YoY to 2.3BU, given the strong base (increased 12% YoY in 3Q last year). Revenue was flat YoY at INR17.1b. T&D losses declined 200bp YoY to 9.8%. Power exports stood at 135...
Q2FY19 Highlights CESC operated its three key power plants Budge Budge (standalone), Dhariwal and Haldia (operating under subsidiaries) at a PLF of 100% (-265bps), 96% (+806 bps) and 49% (+553 bps) in Q2FY19 respectively. T&D loss for distribution license area was 9.65% (-115bps) in Q2FY19. PLF of Budge Budge along with reduction in T&D losses (compared to norms) are key to CESC standalone earnings CESC has filed petition for new tariff period FY19-FY20. We expect the tariff order and norms ...
Event update CESC Board has approved the demerger of the company into three entities – CESC, RP–SG Retail and RP–SG Business Process Services. The company expects to demerge the power business into separate generation and distribution businesses, post the regulatory approval Details In May 2017, CESC announced a demerger scheme, which entailed segregation of the company into four parts: a) Distribution Business - CESC Ltd b) Generation Business in Haldia Energy Ltd (HEL) c) Retail Business ...
CESC: CESC to go ahead with part demerger; Demerger to unlock value; Buy (CESC IN, Mkt Cap USD1.6b, CMP INR886, TP INR1077, 22% Upside, Buy) CESC to go ahead with part demerger; record date is 31st October 2018 CESC’s board of directors has decided to go ahead with the demerger but with some modification. Instead of demerging the power business into generation and distribution, it will be keeping it as a single entity. Thus, the demerger will be into three instead of four businesses: po...
Q1FY19 results YES Bank’s PAT of Rs12.6bn grew 31% yoy and 7% qoq. While PAT was in-line, quality of earnings was mixed. Strong loan growth of 53% yoy and 6% yoy, a huge increase in non-interest income of 50 % yoy and 19% qoq, higher qoq provisioning cover and declining C/I ratio were the key positives. However, lower margins (as expected), deferment of MTM provisions, low CET1 against strong loan growth, lumpiness in fees, higher proportion of borrowings in the funding mix were key negatives...
Q1FY19 Highlights CESC operated its three key power plants Budge Budge (standalone), Dhariwal and Haldia (operating under subsidiaries) at a PLF of 98% (-265bps), 93% (+725 bps) and 81% (+2659 bps) in Q1FY19 respectively whereas T&D loss for distribution license area was 9.65% (-135bps) in Q1FY19. PLF of Budge Budge along with reduction in T&D losses (compared to norms) are key to CESC earnings Regulator notified tariff order and norms for FY18 with a delay of four quarters (expected to be n...
CESC: Standalone performance impacted by absence of tariff hike; Spencer returns to growth, PLF at Dhariwal improves; Maintain Buy (CESC IN, Mkt Cap USD1.8b, CMP INR910, TP INR1292, 42% Upside, Buy) CESC's standalone (S/A) 1QFY19 PAT grew 2.2% YoY to INR1.8b (in-line). Sales declined 0.5% YoY to 2.8BU. T&D losses were down 290bp YoY to 9.7%. It sold 91MU in the merchant market, as against 8MU in 1QFY18. Depreciation was flat QoQ, indicating capitalization was muted in the quarter. Spencer ...
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