CESC Q1 PAT seen down 32.7% at Rs 167.0 cr: ICICI Securities

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26 Aug, 2025 12:21

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ICICI Securities has come out with its first quarter (April-June) earnings estimates for the Power and coal sector. The brokerage house expects CESC to report a 32.7 percent degrowth quarter-on-quarter (up of 9.9 percent year-on-year) in net profit at Rs 167.0 crore.Sales are expected to increase by 40.6 percent Q-o-Q (up 22.0 percent Y-o-Y) to Rs 2079.0 crore, according to ICICI Securities.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 16.3 percent Q-o-Q (up 3.2 percent Y-o-Y) to Rs 398.4 crore.ICICI Securities's report on CESCExpect CESC’s Q4FY16 revenue to increase 22 percent Y-o-Y on increased power purchase from Haldia power plant on lower internal generation and regular capex at Kolkata DISCOM.CESC’s Q1FY17 generation declined by over 7.5 percent Y-o-Y, resulting in a PLF decline of 629bps (from 84 percent in Q1FY16 to 78 percent in Q1FY17).However, EBITDA is expected to grow only 3.2 percent Y-o-Y as we factor an under-recovery of Rs 200mn on coal produced from Sarisatolli mine, on account of lack of regulatory clarity on cost pass through.EBITDA growth is likely to be complemented by marginal decline in interest and tax expenses, resulting in PAT increase of 9.9 percent Y-o-Y. However, given that CESC follows a regulated accounting model, it is advisable to view its profitability on a full year basis (I-Sec estimate: +3.5 percent Y-o-Y in FY17).Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.