Calcutta ElectricitySupply Corporation analysed Economically & Financially for year 2015 & 2016

1. MANAGERIAL
ECONOMICS
-Individual Assignment
Abhijit Mondal
BillGates
PGDM-2589

2. ELECTRICITY SECTOR
► CESC (Calcutta Electricity Supply
Corporation)

3. INTRODUCTION
The Calcutta Electric Supply Corporation or CESC is the Kolkata-based flagship
company of the RP-Sanjiv Goenka Group, born from the erstwhile RPG Group,
under the chairmanship of businessman Sanjiv Goenka. It is an Indian electricity
generation and the sole distribution company serving 567 square kilometres
(219 sq mi) of area administered by the Kolkata municipal corporation, in the city
of Kolkata, as well as parts of Howrah, Hooghly, 24 Parganas (North) and 24
Parganas (South) districts in the state of West Bengal. It serves 3.0 million
consumers approximately, which includes domestic, industrial and commercial
users.

4. HISTORY
The first demonstration of electric light in Calcutta was conducted on July 24, 1879 by P W
Fleury & Co. In 1881, 36 electric lights lit up a Cotton Mill of Mackinnon & Mackenzie. The
Government of Bengal passed the Calcutta Electric Lighting Act in 1895. The first license
covered an area of 5.64 square miles (14.6 km2). On 7 January 1897 Kilburn & Co. secured the
Calcutta electric lighting license as agents of The Indian Electric Company Limited. The
company soon changed its name to the Calcutta Electric Supply Corporation Limited and in
1897, The Calcutta Electric Supply Corporation Limited was registered in London. On 17 April
1899, the first thermal power plant of The Calcutta Electric Supply Corporation Limited was
commissioned at Emambagh Lane near Prinsep Ghat. The company was shifted to the
Victoria House in Dharmatala, Kolkata in 1933. In 1978 it was named "The Calcutta Electric
Supply Corporation (India) Ltd. The Calcutta Electric Supply Corporation (India) Limited from
1989, and the name was changed from The Calcutta Electric Supply Corporation (India)
Limited to CESC Limited.

5. MANAGING TEAM

6. Shareholding of promoter & promoter
group

7. Listing in stock indices

8. ANALYSIS OF FINANCIAL
PERFORMANCE

9. Assets

10. Total liabilities

11. Financial performance
2017 2016 Absolute change % change
Total revenue 6979.7 6434.4 545.25 8.4739
Net profit 862.86 707.01 155.85 22.044
Total assets 28447 19326 9121.01 47.195
Total liabilities 28447 19326 9121.01 47.195
0
5000
10000
15000
20000
25000
30000
2017 2016 Absolute change % change
Figures in crore
Total revenue Net profit Total assets Total liabilities

12. Market share

13. Current market capitalization

14. Stock performance

15. Demand estimation and forecasting

16. Interpretation
 This regression line indicates that the with zero advertising expenditure(Xt = 0),the expected
sales revenue of the firm(Yt=) is Rs 2155.4 crores.
 With advertising of Rs.1crore as in the first observation year(i.e., with X1= Rs.1 crore)
y2008=(2155.4+483.46)*(1)=2639 crores.
 On the other hand, with X1=Rs.10 crore
y2017=(2155.4+483.46)*(10)=6990 crores.
 The estimated regression line could also be used to estimate that the firm’s sales revenue
with advertising expenditures of Rs.11 crore in 2018 would be;
y2018= (2155.4+483.46)*(11)= 7473.5 crores.
 With 2019 Rs.12 crore of advertising expenditures would be;
y2019= (2155.4+483.46)*(12)=7956.9 crores.
 Plotting these two points (11,7473.5) and (12, 7956.9) and joining them by a straight line, we
can obtain the regression line.

17. Moving Average
Year Sales(A) F A-F (A-F)*(A-F) F A-F (A-F)*(A-F) F A-F (A-F)*(A-F)
2008 2809.74 _ _ _ _ _ _ _ _ _
2009 3070.09 _ _ _ _ _ _ _ _ _
2010 3331.82 2939.915 391.91 153589.529 _ _ _ _ _ _
2011 4094.21 3200.955 893.26 797904.495 3070.55 1023.66 1047879.8 _ _ _
2012 4604.98 3713.015 891.96 795601.561 3498.707 1106.27333 1223840.69 3326.465 1278.515 1634600.61
2013 5241.79 4349.595 892.2 796011.918 4010.337 1231.45333 1516477.31 3775.275 1466.515 2150666.25
2014 5445.16 4923.385 521.78 272249.151 4646.993 798.166667 637070.028 4318.2 1126.96 1270038.84
2015 6132.22 5343.475 788.75 622118.675 5097.31 1034.91 1071038.71 4846.535 1285.685 1652985.92
2016 6434.44 5788.69 645.75 416993.062 5606.39 828.05 685666.803 5356.038 1078.403 1162951.95
2017 6979.69 6283.33 696.36 484917.25 6003.94 975.75 952088.063 5813.403 1166.288 1360226.53
Total 4339385.64 7134061.4 9231470.1
2018 _ 6707.065 6515.45 6247.878
RMSE 736.4939 1009.53 1240.394
RANGE 5970.571 5505.92 5007.483
7443.559 7524.98 7488.272
For 2 years For 3 years For 4 years
Two years moving average is better than the 3 years & 4 years moving average

18. Interpretation
 2 Quarter RMSE = 736.5 < 3 Quarter RMSE =1009.53
 The 2 Quarter Moving Average forecast is marginally better than the corresponding
3 Quarter Moving Average.
 3 Quarter RMSE = 1009.53 < 4 Quarter RMSE =1240.394.
 The 3 Quarter Moving Average forecast is marginally better than the corresponding 4
Quarter Moving Average.
 Finally 2 quarter moving average is better than the 3 and 4 quarter moving average.

19. COMPETITIVE ANALYSIS

20. Comparative analysis (Assets)
Total Assets 2016 2015
Reliance Infrastructure 51,164.33 49,570.58
Adani Power 42,045.11 37,726.36
Reliance Power Limited 21,358.23 21,594.49
Calcutta Electric Supply Corporation 19,326.15 18,917.94
JSW Energy 16,440.08 14,017.61
Jaiprakash Power Ventures Limited 24,013.53 32,120.06
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
Figures in crore
2016 2015

21. Comparative analysis (Liabilities)
Total Liabilities 2016 2015
Reliance Infrastructure 51,164.33 49,570.58
Adani Power 42,045.11 37,726.36
Reliance Power limited 21,358.23 21,594.49
Calcutta Electric Supply Corporation 19,326.15 18,917.94
JSW Energy 16,440.08 14,017.61
Jaiprakash Power Ventures Limited 24,013.53 32,120.06
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
Figures in crore
2016 2015

22. Comparative analysis (Net Profit)
Net Profit 2016 2015
Reliance Infrastructure 1,985.82 1,533.39
Adani Power 5.62 -68.63
Reliance Power Limited 402.74 25.1
Calcutta Electric Supply Corporation 707.01 697.72
JSW Energy 965.85 994.55
Jaiprakash Power Ventures Limited -294.5 137.21
-500.00
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
Figures in crore
2016 2015

23. Comparative analysis
(Total revenue)
Total Revenue 2016 2015
Reliance Infrastructure 9,785.44 10,346.65
Adani Power 12,704.15 10,624.61
Reliance Power Limited 85.38 136.2
Calcutta Electric Supply Corporation 6,434.44 6,132.22
JSW Energy 5,957.34 6,330.04
Jaiprakash Power Ventures Limited 3,871.81 3,935.53
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
Figures in crore
2016 2015

24. Marketing
• Advertisement on CESC’s Monthly Electricity Bills.
• Branded Envelopes with or without Samples.
• Branded Leaflets / Discount Coupons.
• Cash Office Hoardings.
• Digital Signage options at Cash Offices.
• Leveraging CESC own properties as OOH options.
• E Mailers.
Reach Occasion of
involvement
Recall &
Retention
Bill Design
and Format
Area
Segmentation
Lady
receives
the bill
Media Options
CESC Media – High Points

25. Technology
Smart grid technology
The concept entails adopting digital and automated technology
from the supply side to end users so as to enhance reliability and
reduce waste. Its adoption has received priority as it is cost-saving
in the long run. Experts said implementation of smart grid
technology will enable them to anticipate system disturbances
and respond to it, resulting in better operational efficiency.
Power cable technology
• Residential & industrial load density: growing trend.
• Greater services reliability & increased safety.
• High acceptability on aesthetic point of view.

26. References
 http://www.moneycontrol.com/
 https://www.cesc.co.in/
 http://www.thehindu.com/
 http://economictimes.indiatimes.com/
 https://www.google.co.in/

27. THANK YOU