CESC 2024-25 Annual Report Analysis

Mon, 18 Aug

CESC has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

CESC Income Statement Analysis

• Operating income during the year rose 11.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.1% in FY25 as against 26.3% in FY24.
• Depreciation charges decreased by 0.9% and finance costs increased by 7.5% YoY, respectively.
• Other income grew by 49.1% YoY.
• Net profit for the year declined by 1.3% YoY.
• Net profit margins during the year declined from 9.5% in FY24 to 8.4% in FY25.

CESC Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	152,932	170,013	11.2%
Other income	Rs m	2,511	3,742	49.1%
Total Revenues	Rs m	155,443	173,755	11.8%
Gross profit	Rs m	40,255	40,928	1.7%
Depreciation	Rs m	12,167	12,055	-0.9%
Interest	Rs m	13,767	14,793	7.5%
Profit before tax	Rs m	16,831	17,823	5.9%
Tax	Rs m	2,358	3,544	50.3%
Profit after tax	Rs m	14,473	14,279	-1.3%
Gross profit margin	%	26.3	24.1
Effective tax rate	%	14.0	19.9
Net profit margin	%	9.5	8.4

3 Tiny Giants: Small Caps Running Their Own Kingdoms

CESC Balance Sheet Analysis

• The company's current liabilities during FY25 stood at Rs 85 billion as compared to Rs 69 billion in FY24, thereby witnessing an increase of 22.1%.
• Long-term debt stood at Rs 129 billion as compared to Rs 109 billion during FY24, a growth of 18.4%.
• Current assets rose 14% and stood at Rs 161 billion, while fixed assets rose 8% and stood at Rs 249 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 410 billion as against Rs 372 billion during FY24, thereby witnessing a growth of 10%.

CESC Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	114,456	120,097	4.9
Current Liabilities	Rs m	69,450	84,820	22.1
Long-term Debt	Rs m	108,561	128,538	18.4
Total Liabilities	Rs m	371,678	409,811	10.3
Current assets	Rs m	141,319	160,850	13.8
Fixed Assets	Rs m	230,359	248,961	8.1
Total Assets	Rs m	371,678	409,811	10.3

CESC Cash Flow Statement Analysis

• CESC's cash flow from operating activities (CFO) during FY25 stood at Rs 26 billion, an improvement of 9.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -30 billion, an improvement of 434.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs 13 billion, an improvement of 181% on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs 9 billion from the Rs 1 billion net cash flows seen during FY24.

CESC Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	23,514	25,815	9.8%
Cash Flow from Investing Activities	Rs m	-5,636	-30,125	-
Cash Flow from Financing Activities	Rs m	-16,416	13,369	-
Net Cash Flow	Rs m	1,462	9,058	519.7%

Current Valuations for CESC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.8, an decline from the EPS of Rs 10.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 164.7, stands at 15.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 8.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	115.4	128.3
TTM Earnings per share	Rs	10.9	10.8
Diluted earnings per share	Rs	10.9	10.8
Price to Cash Flow	x	6.0	8.3
TTM P/E ratio	x	11.1	15.1
Price / Book Value ratio	x	1.3	1.8
Market Cap	Rs m	143,586	219,846
Dividends per share (Unadj.)	Rs	4.5	4.5

Ratio Analysis for CESC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY25, from 2.0x during FY24. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 2.2x during FY25, from 2.2x during FY24. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 11.9% during FY25, from 12.6% during FY25. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 13.1% during FY25, from 13.7% during FY24. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 7.1% during FY25, from 7.6% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	2.0	1.9
Debtors’ Days	Days	5	5
Interest coverage	x	2.2	2.2
Debt to equity ratio	x	0.9	1.1
Return on assets	%	7.6	7.1
Return on equity	%	12.6	11.9
Return on capital employed	%	13.7	13.1

To see how CESC has performed over the last 5 years, please visit here.

CESC Share Price Performance

Over the last one year, CESC share price has moved down from Rs 169.0 to Rs 164.7, registering a loss of Rs 4.3 or around 2.5%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 6,644.6 (up 0.5%). Over the last one year it has moved down from 8,229.7 to 6,644.6, a loss of 1,585 points (down 19.3%).

Overall, the S&P BSE SENSEX is up 3.4% over the year.

(To know more, check out historical annual results for CESC and quarterly results for CESC)