CESC - Q4FY20 First Cut - ICICI Securities

(CMP: Rs. 616; MCap: Rs. 7706 crore)

CESC reported decent Q4FY20 results wherein revenues on account of better than expected generation was higher while there EBITDA witnessed significant beat on account of lower other expenses.

Q4FY20 Earnings Summary

- CESC reported revenues at Rs. 1583 crore, decline of 4.8% YoY. But the reported revenues were better than our estimates of Rs. 1553.7 crore, this is mainly on the back of higher than expected energy sold during Q4FY20

- Reported EBITDA came in at Rs. 250 crore, which was higher than our estimate of Rs. 157 crore. The key reason for the beat is lower fuel costs and lower other operating expenses which were down by 13.8% and 41% YoY, respectively

-PAT came in at Rs. 250 crore vs. our estimate of Rs. 267 crore, on account of lower other income and other regulatory income

Key thing to watch is the operational performance of the distribution business and the PPA status on the untied capacity in the Dhariwal project.

Shares of CESC LTD. was last trading in BSE at Rs.641.75 as compared to the previous close of Rs. 621.6. The total number of shares traded during the day was 10223 in over 913 trades.

The stock hit an intraday high of Rs. 645 and intraday low of 620.6. The net turnover during the day was Rs. 6500951.

Source : Equity Bulls

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