CESC LTD Announces Quarterly Results (4QFY19); Net Profit Up 5.8%

Tue, 21 May

CESC LTD has announced its results for the quarter ended March 2019. Here is a detailed performance review of the same:

CESC LTD Quarterly Financials

No. of Mths Qtr. Ending		3 Mar-18*	3 Dec-18*	3 Mar-19*	QoQ Change	YoY Change
Net Sales	Rs m	17,950	17,070	16,620	-2.6%	-7.4%
Other income	Rs m	480	450	720	60.0%	50.0%
Turnover	Rs m	18,430	17,520	17,340	-1.0%	-5.9%
Expenses	Rs m	15,300	15,050	15,120	0.5%	-1.2%
Gross profit	Rs m	5,510	2,020	5,330	163.9%	-3.3%
Depreciation	Rs m	1,110	1,090	1,030	-5.5%	-7.2%
Interest	Rs m	1,160	1,170	1,090	-6.8%	-6.0%
Profit before tax	Rs m	3,720	210	3,930	1771.4%	5.6%
Tax	Rs m	800	480	840	75.0%	5.0%
Profit after tax	Rs m	2,920	-270	3,090		5.8%
Gross profit margin	%	30.7	11.8	32.1
Effective tax rate	%	21.5	228.6	21.4
Net profit margin	%	15.8	-1.5	17.8

Year-on-Year Performance:

• The company's operating income during the quarter fell 7.4% on a year-on-year (YoY) basis. The expenses were down by 1.2% YoY during the same period.
• The company's operating profit declined by 3.3% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 32.1% in 4QFY19 as against 30.7% in 4QFY18.
• Depreciation charges declined by 7.2% and finance costs declined by 6.0% YoY, respectively.
• Other income increased by 50.0% YoY during the quarter.
• Net profit for the quarter increased by 5.8% YoY. Net profit margins during the quarter increased from 15.8% in 4QFY18 to 17.8% in 4QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 2.6% on a quarter-on-quarter (QoQ) basis. The expenses were up by 0.5% QoQ during the same period.
• The company's operating profit increased by 163.9% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 32.1% in 4QFY19 as against 11.8% in 3QFY18.
• Net profit for the quarter increased by 1244.4% QoQ, while net profit margins increased from -1.5% in 3QFY18 to 17.8% in 4QFY19.

To see how CESC LTD has performed over the last eight quarters, please visit here.

CESC LTD Share Price Performance

Over the last one year, CESC LTD share price has moved up from Rs 1,011.4 to Rs 721.0, registering a Loss of Rs 290.4 or around 28.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 1,932.6 (down 0.6%). Over the last one year it has moved down from 2,083.9 to 1,932.6, a gain of 151 points (down 7.3%).

Overall, the S&P BSE SENSEX is up 13.9% over the year.

Current Valuations

At the current price of Rs 721.0, the price to earnings (P/E) ratio of CESC LTD stands at 13.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.1 times.