CESC gains 4% after arm incorporates Redgaint Renewable Power

CESC arm Purvah Green Power incorporates Redgaint Renewable Power Energy to explore opportunities in renewable power sector

CESC shares rose as much as 4 per cent on the BSE and registered an intraday high of Rs 202.45 per share. The shares, however, pared gains and were up 1.82 per cent at Rs 198.35 per share on BSE around 1:41 PM. By comparison, the BSE Sensex was down 72.61 points at 82,890.10.

The stock jumped after the company's subsidiary Purvah Green Power incorporated Redgaint Renewable Power Energy.

"Purvah Green Power Private Limited, a subsidiary of the company, has incorporated a wholly-owned subsidiary company named Redgaint Renewable Power Energy Private Limited on September 11, 2024," the filing read.

The objective of the subsidiary is to explore opportunities in the renewable power sector.

Recently, Purvah Green Power had accepted a Letter of Award (LoA) from CESC for setting up a solar PV power project of 300 MW.

The power purchase agreement was to remain in force for 25 years from the scheduled commencement of the supply date.

CESC Q1FY25 results

CESC, in the quarter ended June 30, recorded a profit after tax (PAT) of Rs 388 crore as against profit of Rs 368 crore a year ago. The gross revenue for the quarter stood at Rs 4,918 crore against Rs 4,369 crore year-on-year (Y-o-Y).

Meanwhile, the earnings before interest, tax, depreciation, and amortisation (Ebitda) stood at Rs 1,115 crore for the June quarter against Rs 1,047 crore a year ago.

The standalone total sales for the quarter ended June 30 stood at 3,551 million units against 3,274 million units a year ago.

CESC is India's electrical utility company generating and distributing power in Kolkata and Howrah. The company owns and operates two thermal power plants in generating 885 MW of power. They also have a presence in the renewable fields with Solar Power Plants in Gujarat and Tamil Nadu, with a combined capacity of 27MW.

CESC has its distribution network at EHV (220kV & 132kV), HV (33kV, 11kV, 6kV), and LV (0.4 kV) levels to supply power to its consumers.

In the past one year, the shares of CESC have gained 120.2 per cent against BSE Sensex's rise of 23 per cent.