CESC Limited - In Business Diversification Mode - Fundamental Company Report Including Financial, Business, Recent Development, Industry Overview, Competitors and Key Risk Analysis

Date: February 22, 2011
Pages: 11
Price:
US$ 60.00
Publisher: Omi Advisories
Report type: Brief Review
Delivery: E-mail Delivery (PDF), E-mail Delivery (Word)
ID: CEA6B41EA2FEN
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CESC Limited - In Business Diversification Mode - Fundamental Company Report Including Financial, Business, Recent Development, Industry Overview, Competitors and Key Risk Analysis
Incorporated in 1897, CESC Ltd. is India’s first integrated electric utility. The company has started its business with the generation and distribution of electricity in Kolkata and Howrah. Today, with a customer base of over 2.3 million, CESC is the sole distributor of electricity within an area of 567 sq km of Kolkata and Howrah.

The company has four thermal power plants (currently operational) of aggregate capacity 1225MW. The PLF of the company’s plants are around 93%, which is higher than the industry average. The PLF of the company is the second highest among all the thermal stations of India. The Budge Budge Generation Station of the company is the first thermal power plant in the world to get registered with UNFCCC for carbon credit. The T&D losses of the company stood below 13.3% and the collection efficiency stood at 99.5%. Around 88% of the power requirement is met through the company’s power plants and the remaining demand is met through the power purchasing from other utilities. Around 50% of the coal requirement of the company is sourced from the captive mines.

The T&D network of the company comprises of 474 km circuit of transmission lines linking the company's generating and receiving stations with 85 distribution stations; 3,837 km circuit of HT lines further links distribution stations with LT substations, large industrial consumers and 9,867 km circuit of LT lines connecting the LT substations to LT consumers.

The company has interest in renewable energy segment (in hydel and solar) also. The details of company’s coal assets are given below:
  1. Resource Generation Ltd. (Australia)
    • Have control over 600 MT to 1 Bn Tonne of good quality bituminous coal in South Africa (Boikarabelo Mines in S.A)
    • The Group company has just acquired 10% holding (largest shareholder)
    • Mining expected to start by 2013
    • Index linked favourable pricing formula
    • Access to 37 MT over 20 years – 1MT for first 3 years, 2 MT for 17 years
  2. Indonesia
    • Discussions at final stages for 10 MT over 7 yr period and 40% stake in the company
    • Adjacent 20MT Greenfield a possibility – will give critical mass
Real Estate Business

Being an old utility company, CESC has a large land bank. To utilize idle company assets for income generation and capital appreciation, the company is developing a shopping mall in 3 acres of land at Central Kolkata. Work for the same has started and the mall is expected to be operational by FY13. Turnkey orders placed with L&T. To develop real estate projects, company has floated a 100% subsidiary, CESC Properties Limited.
1. SYNOPSIS

2. FINANCIAL PERFORMANCE

3. RECENT DEVELOPMENTS

4. BUSINESS

5. INDUSTRIAL OVERVIEW

6. FINANCIALS

7. OUT LOOK & CONCLUSION/ VALUATION

8. PEER COMPARISON

9. KEY RISKS
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CESC Limited - In Business Diversification Mode - Fundamental Company Report Including Financial, Business, Recent Development, Industry Overview, Competitors and Key Risk Analysis
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