CESC Ltd.’s shares climbed approximately 2% during early intraday trade on 6 March after the company informed the exchange that it’s expanding its renewable energy portfolio by acquiring Purvah Green Power. This move aims to increase the company’s renewable energy footprint and partially meet its renewables purchase obligations for its distribution business.

Crescent Power Limited, a subsidiary of CESC, has acquired a 100% stake in Purvah Green Power Private Limited. Purvah is a company incorporated under Indian laws with its registered office in Kolkata, West Bengal. This acquisition has made Purvah a step-down subsidiary of the company.

However, in the third quarter of the fiscal year ending March 2024, CESC reported an 11.9 % year-on-year (YoY) decline in net profit, which stood at Rs 281 crore. Despite this, the company’s revenue for the same period increased by 3.7% to Rs 3,244 crore, showcasing its resilience in a challenging market environment. Meanwhile, Earnings before Interest, tax, depreciation, and amortisation (EBITDA) fell 30.2% to Rs 346 crore from Rs 496 crore in the previous fiscal, largely due to higher fuel costs and lower power generation.

Overall, CESC’s acquisition of Purvah Green Power is a strategic move that reflects the company’s commitment to renewable energy and its efforts to meet its renewables purchase obligations for its distribution business.

At 3:30 pm, the shares of CESC lost all its early gains and closed 1.56% lower at Rs 126.30 on NSE.