India's JSW Energy reports lower Q3 profit on lucklustre power demand

Power Grid of India

28/01/2025 14:19

Jan 26 (Reuters) - India's JSW Energy  JSWE.NS  reported a 27.5% fall in third-quarter profit on Tuesday amid
sluggish power demand in the country.
    The company said its consolidated net profit dropped to 1.68 billion rupees ($19.4 million) for the quarter ended
Dec. 31 from 2.31 billion rupees a year earlier.
    Revenue from operations fell 4.1% to 24.39 billion rupees.
    For further results highlights, click (nFWN3OO1C5)
    
    
KEY CONTEXT
     India's electricity generation grew at its slowest pace in 2024 since the COVID-19 pandemic, hit by a slowdown in
the world's fastest growing major economy.
  
        Power demand sharply declined in the second-half of 2024. From October to December, power generation increased
by only 3% compared to a 12% rise a year earlier.
    Peak power demand held steady at 224 gigawatts, 10% below the record high of 250 GW hit in May 2024, reflecting
lower demand due to the onset of winter.
    

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*  analyst     price       yield
                                                                                          s       target**      (%)
 JSW Energy            JSWE.NS     29.81     13.01      23.04       30.77       Buy      11         0.73        0.37
 Tata Power Company    TTPW.NS     24.08     11.83       8.91       18.13      Hold      19         0.78        0.57
 NTPC                  NTPC.NS     13.68      8.95       8.22        9.55       Buy      18         0.76        2.13
 Power Grid Corp of    PGRD.NS     15.60      8.68       5.23        5.84       Buy      14         0.84        4.09
 India                                                                                                        
 

            
* 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

OCTOBER-DECEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 86.5120 rupees


    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
JSW ENERGY OCT-DEC stock performance    https://tmsnrt.rs/3Ee4ksk
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Yagnoseni Das in Bengaluru; Editing by Sonia Cheema)
 ((Yagnoseni.Das@thomsonreuters.com;))