The Bombay Stock Exchange (BSE) Power Index tracks the price movement of 12 power companies operating across various segments of industry. As of September 27, 2023, the index stood at 4,618.79 points, registering a decline of around 3.17 per cent compared to September 27, 2022, when the index was at 4,770.01 points. The 52-week high and low of the index (as of September 2023 end) stood at 4,988.04 points (November 2, 2022) and 3,235 points (February 27, 2023) respectively. In fact, the power index achieved an all-time high of 5,352.94 points on September 16, 2022. Meanwhile, the full market capitalisation of the index stood at around Rs 13,514.47 billion on September 26, 2023.
Renewable Watch presents a round-up of the stock movement and key financial parameters of BSE Power Index companies…
Generation
NTPC Limited reported a growth of 51.25 per cent in its stock price from Rs 158.25 on September 28, 2022 to Rs 239.35 on September 27, 2023. In terms of financial performance, NTPC’s total income increased marginally by 1.27 per cent, from Rs 39,051 million in 2021-22 to Rs 39,546.4 million in 2022-23. Meanwhile, its net profit stood at Rs 171,967.3 million in 2022-23, recording a growth of 6.74 per cent compared to 2021-22.
NHPC Limited reported a growth of 42.41 per cent in its stock price from Rs 36.50 on September 28, 2022 to Rs 51.98 on September 27, 2023. In terms of financial performance, NHPC’s total income increased by only 8.22 per cent, from Rs 93,799.8 million in 2021-22 to Rs 101,509 million in 2022-23. Meanwhile, its net profits stood at Rs 38,337.9 million in 2022-23, recording a growth of 8.37 per cent compared to 2021-22.
Private power major Tata Power witnessed a 21.42 per cent growth in its share price during the period under review. The company’s total income in 2022-23 stood at Rs 218,131.7 million against Rs 140,950.4 million in 2021-22, a growth of 54.76 per cent. Meanwhile, its net profit stood at Rs 32,679 million in 2022-23 as compared to Rs 27,829.3 million in 2021-22.
While Adani Power’s stock price registered a growth of 2.23 per cent over the previous year, it exhibited volatility throughout the year, with the 52-week high and low reaching Rs 410 (September 9, 2023) and Rs 132.55 (February 28, 2023) respectively. The company’s total income stood at Rs 412,011.9 million in 2022-23, recording a significant growth of 3,755.87 per cent over the previous year. Its net profit for the review period stood at Rs 102,461.5 million, a significant improvement from the net loss of Rs 1,822.3 million in the previous year.
Adani Green Energy Limited’s share price has declined by over 50 per cent as of September 27, 2023, compared to September 28, 2022. The stock price has witnessed a continuous decline, particularly from January 17, 2023 (Rs 2,166.50) to February 27, 2023 (Rs 462.45). On February 28, 2023, the stock reached a 52-week low at Rs 439.35. The company’s total income declined from Rs 11,110 million in 2021-22 to Rs 8,409 million in 2022-23 and its net loss reached Rs 328 million in 2022-23 as against a net loss of Rs 57 million in 2021-22.
JSW Energy’s share price witnessed an increase of 48.06 per cent in the period under review. In 2022-23, the company’s total income reached Rs 60,190.8 million, an increase of 55.49 per cent over the previous year, while its net profit increased by 24.78 per cent to Rs 7,110.2 million.
Transmission and distribution
Power Grid Corporation of India Limited’s (Powergrid) stock witnessed a 27.88 per cent increase during the review period. Its total income stood at Rs 459,680.7 million in 2022-23 compared to Rs 423,358.7 million in 2021-22, registering a growth of 8.58 per cent. Its net profit stood at Rs 153,330.2 million, a decline of 10.3 per cent compared to 2021-22.
Private power major Adani Energy Solutions (formerly known as Adani Transmission) witnessed a significant drop of 77.35 per cent in its share price, from Rs 3,602.65 on September 28, 2022 to Rs 816 on September 27, 2023. Notably, it witnessed a significant increase of 139 per cent in its share price during the period September 1, 2021 to August 31, 2022. The stock price witnessed significant volatility, with the 52-week high and low being Rs 3,755.25 (September 29, 2022) and Rs 630 (March 1, 2023) respectively. Particularly between January 24, 2023 and February 28, 2023, the closing stock price declined from Rs 2,756.15 to Rs 642.55. While the company’s total income decreased from Rs 14,406.7 million in 2021-22 to Rs 13,027.9 million in 2022-23, its net profit reached Rs 1,702.8 million in 2022-23 compared to a net loss of Rs 646.1 million in the previous year.
CG Power and Industrial Solutions witnessed a significant growth of 86.86 per cent in its stock price. Its total income stood at Rs 66,589.5 million in 2022-23 compared to Rs 52,042.2 million in 2021-22, registering a growth of 27.95 per cent. The company recorded a 25.24 per cent growth in its net profit, which increased from Rs 6,270.6 million in 2021-22 to Rs 7,853.6 million in 2022-23. The 52-week high and low of the company’s stock price were recorded at Rs 459.25 (September 8, 2023) and Rs 224.65 (October 3, 2022) respectively.
Equipment suppliers
Bharat Heavy Electricals Limited’s (BHEL) stock witnessed a significant growth of 122.24 per cent during the review period. The state-owned power equipment manufacturer’s total income stood at Rs 238,797.5 million in 2022-23 compared to Rs 215,789 million in 2021-22, registering a growth of 10.66 per cent. Its net profit stood at Rs 4,475.5 million, marking a growth of 9.09 per cent compared to 2021-22. The company’s 52-week high and low stood at Rs 148.95 (September 11, 2023) and Rs 55.40 (September 28, 2022) respectively.
ABB India registered a 40.7 per cent growth in its share price during the period under consideration. Its revenues stood at Rs 8,567.53 million in 2021-22 as against Rs 6,934 million in the previous year, marking a growth of 23.56 per cent. Its net profit for 2021-22 stood at Rs 1,016 million as against Rs 519.71 million in 2020-21, marking a significant growth of 95.49 per cent. (These are the latest figures published on BSE India’s website, accessed on October 15, 2023.)
Siemens registered a growth of 37.98 per cent in its share price during the period under review, with it standing at Rs 3,724.45 on September 27, 2023. The company’s 52-week high and low were Rs 4,066.10 (July 31, 2023) and Rs 2,670.35 (September 28, 2022) respectively. Its total income stood at Rs 151,476 million in 2021-22 as against Rs 131,821 million in the previous year, demonstrating a growth of 14.91 per cent. Siemens’ net profit for 2021-22 stood at Rs 15,308 million as against Rs 11,030 million in 2020-21, registering a growth of 38.78 per cent. (These are the latest figures published on BSE India’s website, accessed on October 15, 2023.)
Conclusion
Overall, the BSE Power Index witnessed high volatility in the past year, particularly due to increased speculation regarding the stocks of select companies. The fact that the index reached its all-time high in the past year indicates that the sector has successfully addressed the challenges posed by the Covid-19 pandemic. The power companies on the index are diversifying their operations into the renewable energy sector, exploring new revenue streams and implementing projects in emerging markets.
While the financial health of the power sector is expected to improve going forward, owing to initiatives such as the electricity amendment bill and the Revamped Distribution Sector Scheme, several fundamental challenges still need to be addressed. These challenges pertain to land procurement, open access restrictions and pending discom dues. Such issues may have an adverse impact on the index in the future.
By Sarthak Takyar
