Press Trust of India
Kolkata, 12 November
Power utility CESC Ltd today reported 25.73 per cent jump in standalone net profit of Rs 171 crore for second quarter ending on September 2013 on the back of higher generation and lower power purchase.
The company had posted a profit of Rs 136 crore in the July-September period of 2012-13.
“The sales increase was three per cent in terms of units. Our generation rose by one per cent. Purchase is down. These are the major factors for rise in profits,” CESC Chairman Sanjiv Goenka told reporters here.
Net revenues from sale of electricity jumped 21 per cent to Rs 1,611 crore during the reported quarter as against Rs 1,324 crore in the same period last year.
The standalone figures did not include the losses from its retail subsidiary Spencer’s Retail Ltd. The retail business posted loss of around Rs 12 crore during the quarter as against Rs 22 crore a year ago.
Speaking about the Chandrapur thermal power project in Maharastra, Goenka said the first unit of 300 MW would be commissioned by December and the second in another three months.
Mr Goenka said apart from existing power purchase agreement of 100 MW, the CESC was in dialogue with two private companies for a long term agreement. “If these two PPAs fructify then it will take care of the full capacity of the plant,” he said.
Speaking about Spencer’s retail, Mr Goenka said once the company achieved break-even it would begin the process for listing. Currently, Spencer’s Retail Ltd is a subsidiary of CESC.
The retail arm was expected to break-even in the next two quarters as it has come close to level.
In Q2, cash profit of Spencer’s was Rs 69/sq ft, while the company needed to post Rs 92/sq ft to attain break-even.