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CESC Ventures Ltd.

BSE: 542333 Sector: IT
NSE: CESCVENT ISIN Code: INE425Y01011
BSE 00:00 | 22 May 124.20 5.20
(4.37%)
OPEN

124.50

HIGH

124.95

LOW

119.85

NSE 00:00 | 22 May 123.15 4.30
(3.62%)
OPEN

119.10

HIGH

124.05

LOW

119.10

OPEN 124.50
PREVIOUS CLOSE 119.00
VOLUME 1548
52-Week high 511.90
52-Week low 112.05
P/E 4.01
Mkt Cap.(Rs cr) 329
Buy Price 122.00
Buy Qty 30.00
Sell Price 124.95
Sell Qty 250.00
OPEN 124.50
CLOSE 119.00
VOLUME 1548
52-Week high 511.90
52-Week low 112.05
P/E 4.01
Mkt Cap.(Rs cr) 329
Buy Price 122.00
Buy Qty 30.00
Sell Price 124.95
Sell Qty 250.00

CESC Ventures Ltd. (CESCVENT) - Chairman Speech

Company chairman speech

Dear Shareholder

Your Company was incorporated on 7 February 2017 after CESC Limited decided torestructure its diversified portfolios along clear lines of business. In doing so thelarge IT service operations of CESC were transferred to CESC Ventures — in additionto some CESC subsidiaries that focused on business process outsourcing fast movingconsumer goods restaurants and real estate.

The restructuring along these lines was implemented on 12 October 2018 and becameretrospectively effective from the Appointed Date of 1 October 2017. During 2018-19 CESCVentures became a listed entity.

As a standalone entity your Company's business relates to IT service operations forthe power sector. In addition as subsidiaries it has Firstsource Solutions which is aleading international player in customised Business Process Management services; GuiltfreeIndustries which made its entry with the launch of packaged snacks in 2017-18 under thebrand name "TOO YUMM!"; and it has a presence in real estate and the restaurantbusiness.

I am happy to inform you that CESC Ventures has performed well financially.

On a standalone basis total income was र 124.5 crore in 2018-19. Profit before tax(PBT) stood at र 74.2 crore. Profit after tax (PAT) was र 65.8 crore and earnings pershare (EPS) stood at र 24.81.

On a consolidated basis your Company's total income was र 4393 crore in 2018-19.PBT was र 254 crore. Consolidated PAT for 201819 was र 235 crore. After accountingfornon-controlling interests the PAT attributable to shareholders of your Company stood atर 64 crore with a EPS of र 24.20.

Let me touch upon some of these businesses.

First your Company has enormous experience in managing CESC's extensive IT servicesand has developed intellectual property spanning over 300 applications. These includeelectricity billing monitoring and management of facilities fault management lossminimisation and field-force automation. Other applications are more functional in natureand can be replicated across industries. This allows CESC Ventures the opportunity tomarket its services to clients both within and outside the power sector.

Second Firstsource Solutions is a top class operation. With over 18700 employeesacross 36 service facilities in the US the UK Philippines and India Firstsourceservices a wide client base that include large global enterprises — many of which arein the Fortune 500 and FTSE 100 list of companies. It operates across five globallyimportant verticals: healthcare utilities telecom and media banking financial servicesand insurance (BFSI) and mortgage. In 2018-19 Firstsource's revenues increased by 8.2% inrupee terms. Its PAT was a healthy र 377.8 crore. During the year the company won fivemajor international awards for its performance.

Third let me describe your Company's FMCG business through its wholly owned subsidiaryGuiltfree Industries Limited. In April 2017 it launched healthy packaged snacks underthe brand "TOO YUMM!" with Virat Kohli as the brand ambassador. It also has a70% stake in Apricot Foods Private Limited which markets snacks under the brand name"Evita". Guiltfree is one of India's fastest growing FMCG companies and has amarket share of 2% of total western snacks in the country.

In 2018-19 Guiltfree's standalone revenues were र 160.85 crore; and consolidatedrevenues were र 358.44 crore. It won five national awards for food innovation brandcampaign and packaging.

Fourth in real estate Quest Properties India Limited's first upscale shopping mall inKolkata —the Quest — had over 16 million annual footfalls in 2018-19. Thecombined gross sale of all retailers at the Quest was around र 700 crore. Your Companyis presently expanding its real estate footprint by implementing a residential project inHaldia to cater to large companies and individual residents. It is spread across 3.5 acresand will be carried out in phases. The first phase has been completed and handed over.

Finally in restaurants Bowlopedia another 100% subsidiary of your Company CESCVentures Limited operates restaurants in Kolkata Delhi NCR and more recently Bengaluruunder the brand name of "Waffle Wallah" in the dessert segment and "BombayToastee" in the Indian comfort food) segment. These are early days yet for thisbusiness.

As I see it the portfolio of businesses under your Company are either proven —such as the IT software and business process management business — or growing in adynamic consumer-driven economy. I am therefore fairly confident of your Company'sfuture. So should you be.

With my best regards

Yours sincerely

Sanjiv Goenka
17 May 2019 Chairman