(Reuters) -India’s Tata Power reported first-quarter profit below analyst estimates on Friday as weak electricity demand weighed.
The company’s consolidated net profit rose 9.2% to 10.60 billion rupees ($121.2 million) in the quarter ended June 30 from 9.71 billion rupees in the year-ago period.
Analysts, on an average, had expected 11.16 billion rupees, per data compiled by LSEG.
Revenue from operations rose 4.3% to 180.75 billion rupees, powered by a 52.1% surge in renewables while revenue from some of its largest segments – transmission and thermal and hydro operations – declined.
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KEY CONTEXT
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 noted peak demand, expected to hit 270 gigaawatt (GW), remained subdued, dipping 1% to 242.5 GW in June.
Renewable generation surged in the reported quarter, with April up 33% to 23 billion units (BU), May rising 17% to 25 BU, and June climbing 26% to 27 BU.
Thermal generation continued to decline, with coal-based output down 9% in both May and June.
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** (%)
Tata Power Company 25.20 12.36 NULL 10.64 18.59 Hold 21 0.95 0.57
Ltd
Torrent Power Ltd 23.71 11.41 NULL 9.47 -1.25 Hold 9 0.97 1.45
NTPC Ltd 13.39 9.03 NULL 7.24 1.84 Buy 17 0.79 2.50
CESC Ltd 13.89 8.33 NULL 9.24 14.49 Buy 9 0.82 2.65
* 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 = 87.4970 Indian rupee
(Reporting by Yagnoseni Das in Bengaluru; Editing by Ronojoy Mazumdar and Janane Venkatraman)
