BENGALURU (Reuters) – Tata Power Co Ltd on Thursday reported a roughly 55% rise in fourth-quarter profit, as increased electricity output ahead of summer boosted its transmission and distribution segment. Consolidated net profit increased to 7.78 billion rupees ($95.2 million) in the three months ended March 31, compared with 5.03 billion rupees a year earlier, the energy arm of the Tata conglomerate said in an exchange filing.
Transmission and distribution, Tata Power’s largest business, reported a 16.4% jump in revenue to 82.95 billion rupees. For further highlights, click
WHY IT MATTERS
India’s power generation grew at the fastest pace in over three decades in the fiscal year ended March 31, a Reuters analysis of government data showed, fuelled by a spike in output from both coal-fired and renewable plants.
Tata Power’s revenue grew 28.7% in the year ended March, while its profit climbed 91.5%.
The federal government in March urged power utilities to expand output to ensure adequate supply during summer months, when demand peaks. It also directed power utilities to undertake maintenance of coal-based plants well in advance and run at full capacity to avoid disruptions during the peak summer months of April and May.
PEERS COMPARISON
Valuation (next Estimates (next 12 Analysts’ sentiment
12 months) months)
RIC PE EV/EBIT Revenue Profit Mean # of Stock to Div
DA growth growth rating analysts price target yield
(%)
Tata Power Co Ltd — 11.87 7.76 2.63 Hold 19 0.91 0.86
Torrent Power Ltd 13.40 7.60 3.45 -3.57 Hold 8 1.07 2.09
NTPC Ltd 8.91 7.96 2.71 12.40 Strong 14 0.87 3.26
Buy
CESC Ltd 5.71 5.78 1.28 11.45 Strong 12 0.67 10.00
Buy
** 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
JAN-MARCH STOCK PERFORMANCE
GRAPHIC: Tata Power share move vs peers https://fingfx.thomsonreuters.com/gfx/mkt/egvbybronpq/Pasted%20image%201683205427066.png
— All data from Refinitiv
— $1 = 81.7930 Indian rupees
($1 = 81.7250 Indian rupees)
(Reporting by Ashna Teresa Britto; Editing by Savio D’Souza)
