Standalone sales fall by 12% YoY during 3QFY10. This is despite a marginal rise in electricity generation and volume sales. Change in fuel mix and reduction in power tariffs in Mumbai lead the decline in sales.
Operating margins rise to 21.3% during the quarter from just 12.7% in 3QFY09 – improvement aided by lower fuel costs (as percentage of sales).
Despite a 48% YoY rise in operating profits, net profits grow by just around 29% YoY. Higher depreciation and taxes eat into the bottomline.
During 9mFY10, while sales decline by 9% YoY, net profits grow by 25% YoY.
At the current price of Rs 1,420, the stock is trading at a multiple of around 31 times its trailing 12 months earnings.
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