CESC - Q4FY21 First Cut - ICICI Direct

(CMP - Rs. 770, MCap - Rs. 9624 crore)

On a standalone basis, CESC reported a mixed set of Q4FY21 numbers as revenues were in line with estimates but EBIDTA were ahead of estimates on back of lower power purchase cost. But on profitability level, increase in debt levels lead to higher interest out go which lead to PAT miss. On the subsidiary front, the performance of the generation and distribution subsidiary seems to have improved (we await operational parameters) given strong QoQ jump in profitability.

Q4FY21 Earnings Summary

- Reported revenues came in at Rs. 1688 crore vs. estimate of Rs. 1705.9 crore. We still do not have the operational data but believe some miss on energy sold. However, strong improvement in the performance of the subsidiaries, consolidated revenues have risen 10.3% to Rs. 2890 crore

- EBITDA came in at Rs. 310 crore vs. our estimate of Rs. 281.5 crore, the beat was mainly on account of lower power purchase and fuel costs for Q4FY21

- Reported PAT came in at Rs. 270 crore vs. our estimate of Rs. 281.7 crore, the miss was on account of higher interest outgo in Q4FY21 on account of rise in long term debt. The consolidated PAT came in at Rs. 13.5% YoY

- The company has also announced a stock split in the ratio of 1:10 (10 equity shares of face value of Rs. 1 for every share of face value of Rs. 10)

We would be coming out with the detailed report soon.

Shares of CESC LTD. was last trading in BSE at Rs.770.35 as compared to the previous close of Rs. 782.9. The total number of shares traded during the day was 134897 in over 6220 trades.

The stock hit an intraday high of Rs. 801.35 and intraday low of 760.35. The net turnover during the day was Rs. 105606071.

Source : Equity Bulls

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