CESC net up 12% in Q4, stake sale in arms likely soon

PTI Updated - April 29, 2011 at 06:01 PM.

RPG group company, CESC Ltd today reported a net profit of Rs 112 crore for the Q4 period ended March 2011, up 12 per cent over the corresponding period last year, even while apprehending rise in cost of power due to increase in coal prices.

“We are enthusiast about the performance for the year but at the same time we are concerned about the sudden rise in coal price,” CESC vice—chairman, Mr Sanjiv Goenka said here today briefing the reporters.

The impact of coal price would be to the tune of Rs 200—250 crore and the expected rise would be between 40 and 50 paise each unit, he said.

CESC said the company would be aggressively scouting for coal equity and linkages both in domestic and overseas market.

“We expect import of two million tonnes of coal per annum from South Africa for the next 20 years to begin from 2014.

“We will also bid aggressively when auction of coal blocks by the Centre comes through in the next one year,” Mr Goenka said.

On stake sale in its subsidiaries, Mr Goenka said in the case of Spencers’and Haldia Energy Ltd, it was expected shortly.

The company was expected to sell anywhere between 15 and 25 per cent in Spencer’s and Haldia Energy to part finance its expansion.

Mr Goenka said the company backed out from finalising a private equity deal for Spencers’ when the fund sought a guarantee from the parent company — CESC.

Published on April 29, 2011 12:31