Power Grid Corp of India misses Q3 profit view on sluggish demand

Power Grid of India

03/02/2025 15:08

Feb 3 (Reuters) - Power Grid Corporation of India  PGRD.NS  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  urn:newsml:reuters.com:*:nFWN3OU0CZ.
    
    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    PGRD.NS     15.40      8.77       5.24        5.87       Buy       14       0.86       3.90
 India                                                                                                      
 Tata Power Company    TTPW.NS       -       12.19       8.85       18.05      Hold       19       0.83       0.55
 Torrent Power         TOPO.NS     25.64     12.17       9.64       14.47      Hold       8        0.98       1.09
 NTPC                  NTPC.NS     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

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POWERGRID OCT-DEC PERFORMANCE    https://tmsnrt.rs/4b083Gp
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 (Reporting by Yagnoseni Das and Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala and Tasim Zahid)
 ((Yagnoseni.Das@thomsonreuters.com;))