(Reuters) – India’s JSW Energy reported a 27.5% fall in third-quarter profit on Tuesday amid sluggish power demand in the country.
The company said its consolidated net profit dropped to 1.68 billion rupees ($19.4 million) for the quarter ended Dec. 31 from 2.31 billion rupees a year earlier.
Revenue from operations fell 4.1% to 24.39 billion rupees.
For further results highlights, click (nFWN3OO1C5)
KEY CONTEXT
India’s electricity generation grew at its slowest pace in 2024 since the COVID-19 pandemic, hit by a slowdown in the world’s fastest growing major economy.
Power demand sharply declined in the second-half of 2024. From October to December, power generation increased by only 3% compared to a 12% rise a year earlier.
Peak power demand held steady at 224 gigawatts, 10% below the record high of 250 GW hit in May 2024, reflecting lower demand due to the onset of winter.
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* analyst price yield
s target** (%)
JSW Energy 29.81 13.01 23.04 30.77 Buy 11 0.73 0.37
Tata Power Company 24.08 11.83 8.91 18.13 Hold 19 0.78 0.57
NTPC 13.68 8.95 8.22 9.55 Buy 18 0.76 2.13
Power Grid Corp of 15.60 8.68 5.23 5.84 Buy 14 0.84 4.09
India
* 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
OCTOBER-DECEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 86.5120 rupees
(Reporting by Yagnoseni Das in Bengaluru; Editing by Sonia Cheema)
