(Reuters) - India's Tata Power missed second-quarter profit expectations on Wednesday as lower temperatures during the monsoon season eased demand for electricity.
The company reported a 5.8% year-on-year rise in consolidated net profit to 9.27 billion rupees ($110.3 million) for the July-September quarter, but missed analysts' expectations of 9.82 billion rupees, as per data compiled by LSEG.
Revenue from operations fell 0.26% to 156.98 billion rupees.
The company approved an investment of 56.66 billion rupees for a 1,000 megawatt pumped storage hydro project in the state of Maharashtra.
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KEY CONTEXT
India's electricity demand fell in the July-September quarter as above-normal rainfall resulted in lower temperatures, which, in turn, eased demand for air-conditioning.
In August, India's power generation dropped 4.7% year-on-year, the first decline in two years. Demand fell 4.9%, largely due to excessive rainfall affecting cooling and irrigation needs.
PEER COMPARISON
Valuation (next Estimates (next 12 Analysts' sentiment
12 months) months)
RIC PE EV/EBITD Revenue Profit Mean # of Stock to Div
A growth (%) growth rating* analyst price yield
(%) s target** (%)
Tata Power Company 29.50 13.54 10.44 18.91 Hold 20 1.00 0.47
Torrent Power 33.34 16.10 11.26 20.91 Hold 8 1.25 0.87
NTPC 17.04 10.30 8.81 9.89 Buy 17 0.92 1.70
CESC 13.88 8.79 9.24 12.68 Buy 9 0.87 2.54
* 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-SEPTEMBER STOCK PERFORMANCE
**
**
-- All data from LSEG
-- $1 = 84.0660 rupees
(Reporting by Yagnoseni Das in Bengaluru; Editing by Sonia Cheema and Mrigank Dhaniwala)