 "Sanjiv Goenka, CESC")
The RP-Sanjiv Goenka Group flagship company CESC today reported a flat standalone net profit of Rs 256 crore for the quarter ended March 31, 2013, compared to a net profit of Rs 256 crore during the corresponding period of last fiscal.
Net sales during the quarter rose 9.71% to Rs 1,492 crore, against Rs 1,360 crore in the year-ago period.
Commenting on the flat net profit during the period, Sanjiv Goenka, who was appointed as the chairman of the company, said, “There was an element of tariff increase in the corresponding quarter of last fiscal. The net profit is not stagnant. There is 12% profiability in net profit throughout the year.”
The company's standalone net profit for the 2012-13 stood at Rs 618 crore, registering an increase of 11.55%. Net sales in year rose to 13.83% to Rs 5,242 crore against Rs 4,605 crore in the previous financial year.
The consolidated net profit of CESC for the year saw an increase of 86.59% at Rs 459 crore compared to Rs 246 crore in the previous fiscal. Consolidated net sales stood at Rs 7,497 crore, registering an increase of 24.97%.
Improved performance of company's retail arm Spencer's in the year has contributed to CESC's significant growth in consolidated net profit. Spencer's loss in the year stood at Rs 80 crore compared to about 206 crore in the previous fiscal, Goenka said.
Responding to a query on proposed demerger of Sperncer's, he said, “The path for demerger have been laid down now. The timing will depend on when Spencer's will start making profit.”
“We are expecting Spencer's will make maiden profit in the last quarter of the fiscal,” he added.
There is likely to be a mirror image demerger where all the shareholders of CESC become shareholders of Spencer's in equal proportions. Following this, there can be an initial public offering (IPO) for Spencer's.
The Board has declared a dividend of 70% on each equity share of paid up value of Rs 10 each.
Sanjiv Goenka appointed CESC chairman, Aniruddha Basu to take over as new MD
CESC board today appointed Sanjiv Goenka as the Chairman of the company. His father RP Goenka, who passed away last month, was the previous chairman of the company. Sanjiv Goenka was so far serving as vice chairman of the company.
Aniruddha Basu, currently the executive director (Distribution & Services) of CESC will take over as the new managing director of the company on Auugust 1, 2013.
Basu is set to replace Sumantra Banerjee, who has been serving as CESC MD since August1993. However, Banerjee, aged 64, will continue to be associated with the company as an advisor.
