(Reuters) – Power Grid Corporation of India missed third-quarter profit estimates on Monday, largely because of sluggish power demand.
The state-run energy transmission company’s consolidated net profit fell 4% to 38.62 billion rupees ($443.5 million) in the three months to Dec. 31.
Revenue from operations fell 3% to 112.33 billion rupees, falling short of analysts’ expectations.
For further earnings highlights, click.
KEY CONTEXT
A slowdown in India’s economy had dragged on the rise in power demand.
Power generation in the second half of 2024 grew to about a quarter of the total growth seen in the first half of the year.
India’s power generation grew by only 3% from October to December, compared to a 12% rise a year earlier.
Overall, the power generation growth in 2024 was the slowest since the COVID-19 pandemic.
The average market clearing price on the Indian Energy Exchange last quarter specify fell 26% year-on-year.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITD Revenue Profit Mean # of Stock to Div
A growth (%) growth (%) rating* analysts price yield
target** (%)
Power Grid Corp of 15.40 8.77 5.24 5.87 Buy 14 0.86 3.90
India
Tata Power Company – 12.19 8.85 18.05 Hold 19 0.83 0.55
Torrent Power 25.64 12.17 9.64 14.47 Hold 8 0.98 1.09
NTPC 13.57 8.86 8.73 9.64 Buy 18 0.75 2.30
* 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 = 87.0840 Indian rupees
(Reporting by Yagnoseni Das and Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala and Tasim Zahid)
