CESC incorporated a subsidiary, Redgaint Renewable Power Energy

CESC, which has been producing and distributing electricity in Kolkata and Hyderabad since 1899, is the country’s first fully integrated electrical utility company. The private sector is responsible for producing, distributing, and transmitting electricity. Serving 3.4 million residential, commercial, and industrial customers, we are the only electricity distributor in a 567-square-kilometer area that includes Kolkata, Howrah, and surrounding areas. In our licensed area, we own and run two thermal power plants that produce 885 MW of electricity. These are the 750 MW Budge Budge Generating Station and the 135 MW Southern Generating Station, both located within our licensed region. Among other things, we have put into service the 600 MW Haldia Thermal Plant in Haldia, West Bengal. CESC uses all of the power that Haldia has to offer to meet its whole power needs. A dedicated 400KV network carries the power from Haldia to the city.

CESC has been granted a 300 MW project:

Purvah Green Power incorporated with Redgaint Renewable Power Energy, a CESC subsidiary, has accepted a Letter of Award (LoA) from CESC for the establishment of a solar PV power project, according to a Tuesday announcement from CESC. According to the company, Purvah Green Power won the tariff-based competitive bidding process and was chosen for the 300 MW solar power project. Under a greenshoe option, the company is also chosen for an extra 150 MW of capacity.

The power purchase agreement, according to CESC, will be in effect for 25 years after the planned supply date begins. The 300 MW power project, according to the company, was carried out in the regular course of business and on an arm’s length basis. Purvah Green Power has incorporated with Redgaint Renewable Power Energy as a wholly owned subsidiary, according to a recent report from CESC. The recently formed subsidiary will look into business prospects in the renewable energy industry.

CESC Q1 FY25 result:

CESC announced at the end of the first quarter of FY25 that its net profit had increased by 5.4% YoY to Rs. 388 crore. Gross consolidated revenue for the quarter increased 12.6% YoY to Rs. 4,918 crore for the company. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 6.5% YoY to Rs. 1,115 crores in Q1 FY25.

The company saw a significant increase in power demand during the quarter, with the distribution business in Kolkata growing 8% year over year. In addition, the business has entered into framework agreements with Inox Wind and Suzlon Energy as part of its 3 GW renewable energy initiative.

The shares of CESC Ltd. are up 2% intraday:

The current market price of CESC Ltd’s stock is Rs. 197.70 per share, up nearly 2%. This increase is due to a recent project that the company’s subsidiary Purvah Green Power was awarded. The company’s shares have increased by almost 46% since the year started. Over the previous year, the stock has increased by over 117%.

Conclusion: The project that Purvah Green Power, a subsidiary of CESC Ltd., was awarded is reflected in the positive movement that the company’s stock is making today. This will contribute to the growth of both CESC and the subsidiary.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.