CESC surges 11% on positive outlook, strong Q1 show

CESC Ltd Q1 FY25 earnings: CESC Ltd shares soared 10.66 per cent today and hit a record high of Rs 208.85 apiece on the National Stock Exchange (NSE). In the last one month, the company's scrip has returned 23.33 per cent; for the last six months, it has yielded a return of 57.78 per cent, and it has advanced an impressive 151.56 per cent in the last year, indicating growing confidence among investors.

The rally follows a series of uptick reports, coupled with strong Q1 FY25 results. The reported net profit of CESC Ltd. for the quarter ending June 30, 2024, saw an increase of 5.4 per cent on a year-on-year basis to Rs 388 crore, while the revenue from operations increased by 12.8 per cent to Rs 4,863 crore. Even as EBITDA fell by 48.8 per cent y-o-y at Rs 371 crore during the period under review on account of high operational costs, the report highlighted that the company generated cash and remained profitable.

Wealth management firm Investec predicts a good demand for power and that companies in the power segment, such as CESC, NTPC and Inox Wind. Investec also said that there were substantial improvements in power generation during July 2024 when there was a rise of 8.3 per cent y-o-y due to higher coal dispatches and improvement in plant load factor across all the energy segments. This surge in the power demand will only aid CESC in its performance on bourses.