RP-Sanjiv Goenka promoted CESC Limited is under watch of rating agency ICRA for short term debt programme after its recent acquisition of business process outsourcing firm Firstsource.
ICRA an associate of Moody’s Investor Service that has A one plus (A1+) rating for company’s commercial paper placed it “on watch with developing implications” following a decision of company’s wholly owned subsidiary Spen Liq Private Ltd acquiring an equity stake in Firstsource.
“ICRA will continue to monitor the developments in this regard and evaluate the impact of the same on the business risk profile of CESC,” said the rating agency in its note issued on Wednesday.
CESC has a license to supply electricity in Kolkata and Howrah till 2019. The license area is of 567 sq. km and caters to about over 2.5 million consumers at present. It currently has a generating capacity of 1225 MW (all coal based). The company operates the oldest unit at New Cossipore on an ‘as needed’ basis during the periods of peak demand in order to generate electricity in a cost – efficient manner.
In April June quarter of 2012-13 CESC reported profit after tax (PAT) of Rs 125 crore as against PAT of Rs 554.31 crore a year ago.