CESC soars 3% on incorporating new subsidiary in renewable power sector

CESC stock price surged up to 3.2 per cent at Rs 200.60 per share on the BSE in Monday’s intraday trade. This came after the company’s subsidiary Purvah Green Power established a wholly owned subsidiary named Greenpulse Power. The incorporation was completed on August 28, 2024, the company said in an exchange filing on Monday. 

Greenpulse Power aims to explore opportunities in the renewable power sector and has a subscribed and paid-up capital of Rs 1,00,000. 

Additionally, on August 28, CESC had also incorporated another company in the renewable power sector named Ecovantage Energy as a wholly owned subsidiary of Purvah Green Power ( a subsidiary of the company). 

Power company CESC reported a 5.4 per cent year-on-year increase in net profit for the first quarter ended June 30, 2024, reaching Rs 388 crore, up from Rs 368 crore in the same period last year. The company's revenue from operations grew by 12.8 per cent to Rs 4,863 crore, compared to Rs 4,310 crore in the corresponding quarter of the previous fiscal year.

However, at the operating level, Ebitda (earnings before interest, tax, depreciation, and amortisation) fell by 48.8 per cent to Rs 371 crore in the first quarter, down from Rs 724 crore in the year-ago period. The Ebitda margin declined to 7.6 per cent from 16.8 per cent in Q1 FY24.

CESC, a flagship company of the RP-Sanjiv Goenka Group, has been an integrated power utility since 1899. It is involved in the generation and distribution of electricity across 567 square kilometres in Kolkata, Howrah, Hooghly, North and South 24 Parganas in West Bengal, serving 3.5 million customers with safe, cost-effective, and reliable electricity.

The company has a total market capitalisation of Rs 25,961.30 crore. Its shares are trading at a price to earnings multiple of 32.32 times with an earning per share of Rs 6.01 per share.

At 12:13 PM; the share price of the company pared most if it gain and was trading 0.69 per cent higher at Rs 195.65 a piece. By comparison, the BSE Sensex was trading 0.26 per cent higher at 82,581 levels.