RattanIndia Power stock price rallies 4% on strong June quarter performance

Shares of RattanIndia Power zoomed as much as 3.98 per cent to hit an intraday high of Rs 17.50 per share on Friday, August 02, 2024.

However, at 11:19 AM, shares of the company were trading 3.21 per cent higher at Rs 17.37 per share. In comparison, BSE Sensex was trading 0.86 per cent lower at 81,161.91 levels. Check LIVE Updates here

The rise in the share price came after the company announced a strong set of June quarter results (Q1FY25). 

The company’s profit came in at Rs 93 crore in the June quarter of financial year 2025, as opposed to a loss of Rs 549.4 crore in the same quarter last year (Q1FY24).

The revenue from operations, also known as top-line, soared 10 per cent year-on-year (Y-o-Y) to Rs 931.8 crore in the June quarter of FY25, from Rs 847.3 crore in the June quarter of FY24. 

At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda) jumped over 20 per cent Y-o-Y to Rs 188.6 crore in Q1FY25, from Rs 156.8 crore in Q1FY24. 

Consequently, Ebitda margin expanded 170 to 20.2 per cent in the June quarter of FY25, from 18.5 per cent in the June quarter of FY24. 

The company reported that the country experienced robust generation growth over the past 13 years, with a compound annual growth rate (CAGR) exceeding 5 per cent. For FY24, however, the growth rate surged to 7 per cent compared to the same period in FY23. This increase contributed to the highest ever recorded generation in FY 24.

Furthermore, in Q1FY25, all India electricity consumption rose 11 per cent compared to Q1FY24. During this quarter, total generation was 482 billion units (BUs), with renewable energy sources (RES) such as wind, solar, small hydro, and others contributing only 62 BUs, or approximately 13 per cent. 

Despite the total installed RES capacity of 148 GW representing about 33 per cent of the nation's total installed capacity of 446 GW, thermal coal-based power plants are expected to remain the backbone of electricity generation in the country.

Power sector growth outlook

Electricity generation in India, including from grid-connected renewable sources, increased from 1,110.458 billion units (BU) in 2014-15 to 1,739.091 BU in 2023-24, with most of the growth occurring in thermal-based generation. 

For 2024-25, the electricity generation target, including renewable energy, has been set at 1,900 billion units (BU), reflecting a growth of approximately 9.3 per cent over the previous year.

According to the National Electricity Plan published in May 2023, the projected peak electricity demand for the year 2026-27 is 277.2 GW, and for the year 2031-32, it is 366.4 GW.

RattanIndia Power Limited is one of India's largest private power generation companies, with an installed thermal power capacity of 2,700 MW at its facilities in Amravati and Nashik, Maharashtra (1,350 MW at each location).