Delay in tariff increase, higher coal prices keep CESC muted in Q1

On account of lower own generation, its cost of electricity purchase increased 7.72 per cent to touch Rs. 8.37 billion

Delay in regulatory approvals to hike tariff and predominant higher coal prices in the spot auctions hurt CESC’s income as well as its profitability which remained muted in the first quarter (Q1) of the current fiscal year.

Against the income of Rs. 21.64 billion during the Q1 period of the last fiscal year, the company’s net revenue remained flat at Rs. 21.59 billion while net profit increased marginally by 2.25 per cent at Rs. 1.82 billion. In the similar period of the 2017-18 fiscal year, the net profit stood at Rs. 1.78 billion.

According to Rupesh Sankhe, senior research analyst with Reliance