India's Tata Power misses Q2 profit estimates as cooler weather weighs on demand

Torrent Power

30/10/2024 13:12

Oct 30 (Reuters) - India's Tata Power  TTPW.NS  missed second-quarter profit expectations on Wednesday
as lower temperatures during the monsoon season eased demand for electricity.
    The company reported a 5.8% year-on-year rise in consolidated net profit to 9.27 billion rupees ($110.3
million) for the July-September quarter, but missed analysts' expectations of 9.82 billion rupees, as per data
compiled by LSEG.
    Revenue from operations fell 0.26% to 156.98 billion rupees.
    The company approved an investment of 56.66 billion rupees for a 1,000 megawatt pumped storage hydro project
in the state of Maharashtra.
        
  
    
    For further results highlights, click (Full Story)



    KEY CONTEXT
        India's electricity demand fell in the July-September quarter as above-normal rainfall resulted in lower
temperatures, which, in turn, eased demand for air-conditioning.
    In August, India's power generation dropped 4.7% year-on-year, the first decline in two years. Demand fell
4.9%, largely due to excessive rainfall affecting cooling and irrigation needs.
      
  
    
    PEER COMPARISON 
        
        
                                  Valuation (next   Estimates (next 12         Analysts' sentiment          
                                    12 months)           months)                                        
                         RIC       PE    EV/EBITD   Revenue     Profit     Mean     # of     Stock to     Div
                                            A      growth (%)   growth    rating*  analyst    price      yield
                                                                  (%)                 s      target**     (%)
 Tata Power Company    TTPW.NS    29.50   13.54      10.44       18.91     Hold      20        1.00       0.47
    Torrent Power      TOPO.NS    33.34   16.10      11.26       20.91     Hold       8        1.25       0.87
        NTPC           NTPC.NS    17.04   10.30       8.81       9.89       Buy      17        0.92       1.70
        CESC           CESC.NS    13.88    8.79       9.24       12.68      Buy       9        0.87       2.54
 
        
  
 * 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
    
    JULY-SEPTEMBER STOCK PERFORMANCE
  
 ** 
 **
 
    -- All data from LSEG
    -- $1 = 84.0660 rupees


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 (Reporting by Yagnoseni Das in Bengaluru; Editing by Sonia Cheema and Mrigank Dhaniwala)
 ((Yagnoseni.Das@thomsonreuters.com;))