Power Grid Corp of India posts higher Q1 profit as expenses fall

Torrent Power

26/07/2024 16:31

BENGALURU, July 26 (Reuters) - State-run energy transmission company Power Grid Corp of India
 PGRD.NS  posted a 3.5% rise in first-quarter profit on Friday, helped by falling expenses.
    Power Grid's consolidated net profit rose to 37.24 billion Indian rupees ($444.91 million) in the
quarter ended June 30, from 35.97 billion rupees a year ago.
    Revenue from operations fell 0.4% to 110.06 billion rupees; however, total expenses fell 0.7%.
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3JI2L0

    KEY CONTEXT   
  
    The June quarter included an unusually severe heatwave nationwide that, according to Elara
Securities, boosted the country's base power demand by 10%. Rising power demand, increased capacity
addition and foray into storage solution and green hydrogen would continue to drive growth in the
utility sector, the brokerage said.
    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 compared with every major global economy. India expects power generation to grow 9.3% to
1,900 billion kilowatt hours (kWh) during the fiscal year through March 2025.
    
    PEER COMPARISON    
    
                         Valuation (next  Estimates (next 12  Analysts' sentiment               
                           12 months)          months)                                          
              RIC        PE      EV/EBIT  Revenue  Profit     Mean    # of      Stock to price  Div
                                 DA       growth   growth     rating  analysts  target**        yield
                                          (%)      (%)        *                                 (%)
 Power Grid    PGRD.NS    19.27    10.10   4.20      4.77     Hold          13       1.12         3.55
 Corporation                                                                                    
 of India                                                                                       
 Torrent       TOPO.NS    30.35    15.34   12.38     24.26    Hold          10       1.32         1.04
 Power                                                                                          
 Tata Power    TTPW.NS    29.59    13.64   12.75     22.64    Hold          20       1.17         0.47
 Company                                                                                        
 NTPC          NTPC.NS    17.04    10.45   6.41      8.09     Buy           15       0.97         2.03
 
* 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

    
    APRIL-JUNE STOCK PERFORMANCE      
  

    

-- All data from LSEG IBES

-- $1 = 83.7030 Indian rupees    


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Power Grid Copr India June Qtr 2024 vs Peers    https://tmsnrt.rs/46mb3KI
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 (Reporting by Ashish Chandra in Bengaluru; Editing by Vijay Kishore)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))