India's Torrent Power Q4 profit falls on higher fuel prices

Torrent Power

22/05/2024 13:51

BENGALURU, May 22 (Reuters) - 
    Indian energy provider Torrent Power  TOPO.NS  posted its second straight fall in
quarterly profit on Wednesday, hurt by higher fuel prices.
    The company, a unit of Torrent Group, said consolidated net profit fell 4.2% to
4.3 billion rupees ($51.7 million) in the January-March quarter, from 4.49 billion
rupees a year ago.
    Its revenue from operations rose 8.1% to 65.29 billion rupees, however, total
expenses, led by fuel cost, rose nearly 10% to 60.08 billion rupees.    
    For further results highlights, click   urn:newsml:reuters.com:*:nFWN3HP0QZ
    
    WHY IT MATTERS
    Searing heatwaves and an uptick in economic activity have resulted in India's
electricity generation growing at an average of about 8% annually following the
pandemic year of 2020/21, outpacing power demand growth in every major global economy.
    Torrent Power's Chairman, Samir Mehta sees power demand in the the world’s
fastest-growing major economy to remain strong going forward. Company has an aggregate
installed generation capacity of 4,328 megawatt peak (MWp) comprising of 2,730
megawatt (MW) of gas-based capacity, 1,236 MWp of renewable capacity and 362 MW of
coal based capacity.
    Earlier this month, peer Tata Power, reported a 15% rise in its fourth-quarter
profit.
    
    
    PEER COMPARISON
        
                         Valuation(next  Estimates (next  Analysts' sentiment    
                          12 months)       12 months)                            
              RIC        PE      EV/EBI  Revenue  Profit  Mean    No.    Stock   Div
                                 TDA     growth   growth  rating  of     to      yield
                                         (%)      (%)     *       analy  price   (%)
                                                                  sts    target  
                                                                         **      
 Torrent       TOPO.NS    28.55   12.98   7.25    15.78   Sell        9   1.48    1.16
 Power                                                                           
 Tata Power    TTPW.NS    31.12   14.57   15.23   25.45   Hold       19   1.25    0.46
 Company                                                                         
 NTPC          NTPC.NS    16.26    9.70   7.42    13.60   Buy        15   1.00    2.05
 Power Grid    PGRD.NS    17.80   10.31   4.00     6.16   Hold       11   1.14    3.85
 Corporation                                                                     
 of India                                                                        
 * 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


JANUARY-MARCH STOCK PERFORMANCE       
    
     

-- All data from LSEG

-- $1 = 83.2600 rupees


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Torrent Power March Qtr 2024 vs Peers    https://tmsnrt.rs/3WP7vy2
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 (Reporting by Ashish Chandra in Bengaluru; Editing by Tasim Zahid)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))