CESC's Subsidiary Secures ₹871 Crore Deal for Chandigarh Power Distribution

23 Nov 2024 , 02:15 PM

CESC Ltd has informed that its wholly owned subsidiary, Eminent Electricity Distribution Ltd, has been awarded a Letter of Intent (LOI) to acquire 100% shares of an electricity distribution company based at Chandigarh.

An electricity distribution and retail supply company in Chandigarh has been acquired. The deal, valued at ₹871 crore, is expected to be completed within 30 days as per the terms of the Letter of Intent (LOI).

CESC reports a 1.4% net profit growth in Q2 FY2024. At ₹353 crore, it outperformed the net profit for the same quarter last year at ₹348 crore. Revenue from operations grew 8% YoY to ₹4,700 crore from ₹4,352 crore for the corresponding quarter of FY2023.

EBITDA rose 38.7% to ₹896 crore in the quarter; ₹646 crore in the year-ago period EBITDA margin up at 19% for Q2 FY2024; 14.8% in the corresponding quarter last year

Regulatory income 2.6x at ₹689 crore in the quarter. That mainly accounts for the increase in EBITDA. High energy costs increase 55.2% YoY ₹2,543 crore and one-time cost continues to squeeze the margins.  The profitability, however, improved quite considerably in the quarter more or less due to regulatory income.