(Reuters) -India’s Adani Power reported a 15.5% fall in first-quarter profit on Friday, as early monsoon dampened power demand.
The thermal power producer, part of billionaire Gautam Adani-led Adani Group, said its consolidated net profit fell to 33.05 billion rupees ($378.1 million) in the quarter ended June 30 from 39.13 billion rupees a year earlier.
Revenue from operations, entirely from power generation and related activities, fell 5.7% to 141.09 billion rupees.
For further results highlights, click (Full Story)
KEY CONTEXT
Adani Power attributed the weak earnings to softer selling prices and higher import coal prices year-on-year.
India’s power demand fell 1.8% year-on-year to 481 billion units in the quarter ended June 30, as unseasonal rains and an early monsoon arrival curbed cooling needs, analysts have noted.
Peak demand, expected to hit 270 gigawatt (GW), remained subdued, dipping 1% to 242.5 GW in June.
Thermal generation continued to decline, with coal-based output down 9% in both May and June.
Adani Power, the country’s largest private thermal power producer, operates an installed thermal power capacity of 17,510 megawatt across India.
PEER COMPARISON
Valuation (next 12 Estimates Analysts
months) (next 12 ‘
months) sentimen
t
RIC PE EV/EBI Price/ Revenue Profit Mean # of Stock to Div
TDA Sales growth growth rating* analyst price yield
s target** (%)
Adani Power Ltd 14.48 11.99 NULL 7.59 14.53 Strong 3 0.93 NULL
Buy
NTPC Ltd 13.39 9.03 NULL 7.24 1.84 Buy 17 0.79 2.50
JSW Energy Ltd 28.30 11.62 NULL 50.12 39.80 Buy 16 0.86 0.39
Tata Power Company 25.20 12.36 NULL 10.64 18.59 Hold 21 0.95 0.57
Ltd
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.4200 Indian rupees
(Reporting by Yagnoseni Das in Bengaluru; Editing by Eileen Soreng)
