The power sector in India has demonstrated remarkable resilience and growth over the past year, as reflected in the recent performance of key players listed on the BSE Power Index. On September 20, 2023, the BSE Power Index stood at 4,680 points and by September 20, 2024, it had increased to 8,491 points, representing a percentage change of approximately 81.43 per cent. This period has seen significant fluctuations in stock prices, alongside substantial variations in financial results, indicating a dynamic landscape for both public and private power companies. Noteworthy performers include NTPC Limited, NHPC Limited and Tata Power, all of which have reported impressive stock price increases and solid financial growth. Other notable companies, such as Adani Power and JSW Energy, have also showcased significant changes in their stock prices and financial outcomes.
A look at the financial highlights of these companies, with a focus on the key metrics and percentage changes in their performance during 2023-24, as sourced from the BSE Power Index…
Generation
NTPC Limited’s stock price has surged by 74.58 per cent, climbing from Rs 241.75 on September 20, 2023, to Rs 424.15 on September 20, 2024. In terms of financial performance, it reported a net profit of Rs 213.32 billion for 2023-24. This reflects an impressive increase of approximately 24.6 per cent compared to the net profit of Rs 171.21 billion recorded in the previous year. Furthermore, the company reported a total income of Rs 1,811.65 billion for 2024, a rise from Rs 1,779.76 billion in 2023, marking a percentage change of approximately 1.79 per cent. The company, which currently has an installed capacity of 73,024 MW, plans to expand this capacity to 130 GW by 2032.
Public sector hydropower major NHPC Limited also reported a growth of 68.38 per cent in its stock price, which increased from Rs 55.50 on September 20, 2023 to Rs 94.84 on September 20, 2024. In terms of financial performance, NHPC recorded a net profit of Rs 42.6 billion in 2023-24, reflecting a decline of 5.76 per cent compared to Rs 40.28 billion in the previous year. The company’s total installed capacity currently stands at 7,144.2 MW, and it is actively engaged in constructing projects with an aggregate capacity of 10,442.7 MW.
Tata Power has witnessed an increase of 21.42 per cent in its stock price, which rose from Rs 262 on September 20, 2023 to Rs 444.50 on September 20, 2024. In terms of financial performance, the company reported a net profit of Rs 42.8 billion for 2023-24, marking a 12.34 per cent increase compared to Rs 38.1 billion in the previous year. The stock began its upward trajectory in December 2023 after a prolonged period of decline, while the total income rose by 11.89 per cent to Rs 632.72 billion, up from Rs 565.47 billion in 2022-23.
Adani Power’s stock price experienced a significant growth of 78.34 per cent over the previous year, despite considerable volatility. Its share price reached a peak of Rs 895 on June 3, 2024. However, it has since declined to Rs 665.10 as of September 20, 2024. Despite this decrease, it remains higher than its value of Rs 368.55 on September 20, 2023. For 2023-24, Adani Power recorded a net profit of Rs 208.29 billion, marking a substantial increase of 94.17 per cent compared to the net profit of Rs 107.27 billion in the previous year. Furthermore, the company’s total income rose by 40.05 per cent, reaching Rs 602.81 billion in 2023-24, up from Rs 430.41 billion in 2022-23.
Adani Green Energy Limited’s (AGEL) share price stood at Rs 2,004.95 on September 20, 2024, a significant increase from Rs 1,012.50 on September 20, 2023, reflecting an almost 98 per cent rise during the 12-month period despite a dip to Rs 849.15 on October 26, 2023. In a significant milestone, AGEL became India’s first company to surpass 10,000 MW of renewable energy capacity, further underscoring its leadership in the sector.
Torrent Power Limited’s share price surged by an impressive 158.55 per cent between September 20, 2023 and September 20, 2024, reaching Rs 1,902 in September 2024, up from Rs 719.70 in the previous year. Notably, the stock recorded a 52-week high of Rs 1,969.95 on August 18, 2024. In terms of financial performance, the company reported a net profit of Rs 18.96 billion for 2023-24, down from Rs 21.65 billion in the previous year. However, total income rose by 5.56 per cent, climbing to Rs 275.27 billion compared to Rs 260.76 billion in 2022-23. Throughout the year, Torrent Power secured multiple letters of award and embarked on various power generation and transmission projects, demonstrating its commitment to growth and expansion.
JSW Energy Limited’s share price stood at Rs 407.50 on September 20, 2023 and by September 20, 2024, it had risen to Rs 783, reflecting an increase of 92.15 per cent. Although it fluctuated throughout the year, the stock steadily increased, peaking at Rs 783. JSW Energy recorded a net profit of Rs 17.25 billion during 2023-24 compared to Rs 14.8 billion in the previous year, an increase of 16.55 per cent. The company’s total income increased by 9.88 per cent to Rs 119.41 billion during 2023-24 from Rs 108.67 billion in 2022-23.
Transmission
Power Grid Corporation of India Limited (Powergrid) registered a share price of Rs 204.65 as on September 20, 2023, which rose to Rs 341.05 by September 20, 2024, reflecting an increase of 66.65 per cent. In terms of financial performance, the company recorded a net profit of Rs 155.73 billion for 2023-24, representing a 0.99 per cent increase compared to Rs 154.2 billion in the previous year. The company’s total income also experienced a modest rise of 0.66 per cent, increasing to Rs 469.13 billion from Rs 466.06 billion in 2022-23.
Equipment suppliers
As of September 20, 2024, Bharat Heavy Electricals Limited’s stock was priced at Rs 266.15, a significant increase from Rs 123.65 on September 20, 2023. In terms of company finances, for 2023-24, the power equipment manufacturer reported a the total income stood at Rs 244.39 billion, up from Rs 238.53 billion in 2022-23, reflecting a growth of approximately 2.46 per cent over the previous financial year. However, the company registered a profit after tax of Rs 2.82 billion, compared to Rs 6.54 billion in the previous fiscal year.
Wind turbine manufacturer Suzlon Energy Limited’s share price stood at Rs 83.42 on September 20, 2024, up from Rs 25.92 on September 20, 2023, marking an increase of 234.35 per cent. The company’s total income for 2023-24 rose by 9.63 per cent to Rs 65.67 billion, compared to Rs 59.9 billion in 2022-23. However, Suzlon registered a decline in its net profit, which dropped to Rs 6.6 billion, from Rs 28.87 billion in the previous year, a decrease of 77.13 per cent. The company received fresh orders during the year, strengthening its order book and positioning the company for future growth.
ABB India has demonstrated significant growth in its financials over the past year. On September 20, 2024, its share price stood at Rs 7,708, against Rs 4,330 on September 20, 2023, reflecting a 78.01 per cent increase. In terms of revenue, for the financial year ending December 2023, ABB India reported a total income of Rs 107.48 billion, reflecting a growth of approximately 22.65 per cent from Rs 87.47 billion in the previous financial year. The company’s profit after tax also increased, rising to Rs 12.42 billion in 2023, up by about 22.29 per cent compared to Rs 10.16 billion in 2022.
CG Power and Industrial Solutions saw its share price rise to Rs 747.05 as on September 20, 2024, up from Rs 431.60 on September 20, 2023. This represents a 73.09 per cent increase in share price over the year. In terms of company finances, total income rose from Rs 70.4 billion in 2022-23 to Rs 81.52 billion in 2023-24, an increase of about 15.07 per cent. The company’s net profit also rose, from Rs 9.62 billion in 2022-23 to Rs 14.27 billion in 2023-24, marking a growth of 48.66 per cent.
Siemens Limited’s stock price stood at Rs 6,836.95 on September 20, 2024, up from Rs 3,775.15 on September 20, 2023, demonstrating a rise of 81.1 per cent. The company’s 52-week high was Rs 7,974.25 while the 52-week low was Rs 3,248. For the financial year ending December 2023, the total income was Rs 179.65 billion, up from Rs 152.55 billion in 2022, resulting in a growth of 17.76 per cent. Net profit also increased, reaching Rs 19.11 billion in 2023, compared to Rs 15.3 billion in 2022, representing a growth of 24.9 per cent.
Overall, the sector’s focus on expanding capacity and developing renewable energy sets the stage for continued growth. Companies are adjusting to changing market demands and regulations, which will be essential for their success. Companies such as NTPC Limited, NHPC Limited, Tata Power, Adani Power and Torrent Power have all demonstrated impressive stock price increases and varying financial performances, underscoring the sector’s resilience and potential for expansion.