(Reuters) – India’s Tata Power reported a smaller-than-expected increase in third-quarter profit on Tuesday due to a sharp decline in power demand.
The company’s consolidated net profit rose 8.2% to 10.31 billion rupees ($118.5 million) in the quarter ended Dec. 31, but missed analysts’ expectations of 10.87 billion rupees, as per data compiled by LSEG.
Revenue from operations rose 5.1% to 153.91 billion rupees.
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KEY CONTEXT
India’s power generation increased by only 3% between October and December, the slowest pace since the COVID-19 pandemic, as commercial demand declined significantly due to an economic slowdown.
As a result, the average market clearing price on the Indian Energy Exchange slid 26% last quarter.
PEER COMPARISON
Valuation (next Estimates (next 12 Analysts’ sentiment
12 months) months)
RIC PE EV/EBITD Revenue Profit Mean # of Stock to Div
A growth (%) growth rating* analyst price yield
(%) s target** (%)
Tata Power Company — 12.19 8.87 18.07 Hold 19 0.83 0.55
Torrent Power 25.64 12.17 9.63 14.51 Hold 8 0.98 1.09
NTPC 13.57 8.86 8.71 9.62 Buy 18 0.75 2.30
CESC 14.09 7.64 7.10 9.95 Buy 9 0.68 3.15
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
OCTOBER-DECEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.0290 rupees
(Reporting by Anuran Sadhu in Bengaluru; Editing by Savio D’Souza)
