BENGALURU (Reuters) – Indian power generator and distributor Tata Power Co on Wednesday reported a near 7% rise in second-quarter profit, aided by strong growth in its transmission and distribution business, as power demand swelled.
Consolidated net profit rose to 8.76 billion rupees ($105.22 million) for the quarter ended Sept. 30, compared with 8.19 billion rupees a year ago.
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KEY CONTEXT
India’s power demand jumped in the September quarter, with coal power output hitting the highest for the month of August in six years, according to a Reuters analysis of government data.
The country’s power demand typically peaks in April-June, which coincides with peak summer.
However, power demand surged in the September quarter as India witnessed the driest August in more than a century.
Tata Power’s revenue from operations grew 12% to 157.38 billion rupees in the September quarter.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 months) Analysts’ sentiment
months)
RIC PE EV/EBITDA Revenue profit growth Mean No of Stock to Div yield (%)
growth rating* analysts price
target**
Tata Power Company — 11.75 10.00 67.88 HOLD 17 1.07 0.80
Ltd
Torrent Power Ltd 15.08 8.93 3.79 7.69 SELL 8 1.21 1.72
NTPC Ltd 11.27 8.31 5.19 15.57 STRONG 15 0.90 2.79
BUY
CESC Ltd 7.46 6.70 7.60 11.63 BUY 7 0.88 7.76
* 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
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 83.2550 Indian rupees
(Reporting by Manvi Pant in Bengaluru; Editing by Mrigank Dhaniwala)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.