(Reuters) -India’s Tata Power on Tuesday reported a drop in second-quarter profit, hurt by lower electricity generation after the shutdown of its Mundra plant.
Consolidated net profit fell to 9.19 billion rupees (about $105 million) in the quarter ended September 30 from 9.27 billion rupees a year earlier.
Revenue from operations fell 1% to 155.45 billion rupees.
For further results, (click here).
KEY CONTEXT:
According to analysts at Investec, Tata Power took a 61% hit to power generation in August from the shutdown of its Mundra plant in Gujarat, as the Ministry of Power did not extend subsidies and reimbursements for imported coal-based power plants beyond June end.
August peak power demand in India rose 5.9% year-on-year, ending a three-month downtrend due to early monsoons and lower summer temperatures.
The rise was driven by growth in commercial and industrial power consumption.
Overall power generation increased by 5.6% in August, aided by a 36% increase in renewable power and a 9.4% rise in hydroelectric power generation.
PEER COMPARISON
Valuation Estimates Analysts’ sentiment
(next 12 (next 12
months) months)
RIC PE EV/E Rev Prof Mea No.
Stock Div
BITD enu it n of to yield
A e grow rat anal price (%)
gro th(% ing ysts target
wth ) * **
(%)
Tata 25.0 12.0 9.9 14.0 HOL 21 0.95 0.57
Powe 5 2 5 7 D
r
Comp
any
Ltd
Torr 20.9 10.2 9.5 1.76 HOL 10 0.90 1.58
ent 1 9 5 D
Powe
r
Ltd
NTPC 13.5 9.32 6.2 4.24 BUY 15 0.81 2.46
Ltd 0 9
CESC 13.8 8.47 8.7 11.2 STR 10 0.80 –
Ltd 8 2 2 ONG
BUY
* 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-SEPT STOCK PERFORMANCE
($1 = 87.8950 Indian rupees)
(Reporting by Mridula Kumar; Editing by Eileen Soreng)
