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Informist, Wednesday, Nov. 6, 2024

--Power Grid Jul-Sept operating margin 97% vs 95% year ago

--Power Grid Apr-Sept revenue INR 203.28 bln vs INR 206.64 bln year ago

--Power Grid Apr-Sept net profit INR 71.23 bln vs INR 73.77 bln year ago

--Power Grid to pay INR 4.50 per share interim dividend

--Power Grid Jul-Sept revenue INR 102.60 bln vs INR 104.19 bln year ago

--Power Grid Jul-Sept net profit INR 37.11 bln vs INR 38.34 bln

--Analysts saw Power Grid Jul-Sept net profit INR 38.21 bln

--Power Grid Jul-Sept net profit INR 37.11 bln

 

By Sunil Raghu

 

AHMEDABAD – Fall in demand for power in the country due to a prolonged monsoon that led to relatively lower temperatures saw Power Grid Corp. of India Ltd.'s net profit and revenue for the September quarter decline on a year-on-year basis. Both the net profit and revenue were down on year for the third successive quarter. The market had expected the company's bottom line to be flat on year, and the top line to grow by 7%.

 

The state-owned power transmission company's revenue for Jul-Sept fell 1.5% to INR 102.6 billion, from INR 104.19 billion a year ago. Other than the fall in demand for power, the company's net profit fell 3.2% on year to INR 37.11 billion due to rise in expenditure and higher tax outgo. Sequentially, its revenue was up 1.9% and net profit rose 8.76%.

 

The company's net profit was expected to fall 0.34% on year to INR 38.21 billion, on a revenue that was expected to be 6.92% higher at INR 111.40 billion than a year ago, according to the average of estimates from six brokerage firms.

 

In the Jul-Sept quarter of last year, Power Grid had clocked a net profit of INR 38.34 billion on revenue from operations of INR 104.19 billion.  

 

The company's operations are distributed into three segments--transmission, telecom and consultancy. The transmission business generally accounts for the largest share of the company's total revenue from operations in any quarter. In Jul-Sept, the revenue from the transmission business was down to INR 102.73 billion from INR 103.6 billion a year ago.

 

The company's profits were impacted due to lower revenue and higher expenses. Total expenditure during the quarter rose 7.36% on year to INR 72.39 billion due to higher employee benefits expense, finance costs, other expenses and depreciation.

 

Power Grid's finance costs rose 9.02% to INR 26.05 billion from INR 23.89 billion a year ago. The employee costs were up 11.54% at INR 6.19 billion, compared to INR 5.55 billion a year ago. Tax outgo for the quarter was INR 6.80 billion, 33.43% higher than INR 5.09 billion a year ago.

 

The operating margin rose to 97% compared with 95% a year ago. The company calculates this margin as a ratio of earnings before interest, tax, and depreciation to revenue.

 

For the Apr-Sept period, Power Grid's net profit was INR 71.23 billion versus INR 73.77 billion a year ago. Revenue for the period was INR 203.28 billion against INR 206.64 billion a year ago.

 

The company's board Wednesday approved a proposal to transfer 26% residual equity shareholding in four associate companies -- POWERGRID Kala Amb Transmission Ltd., POWERGRID Parli Transmission Ltd., POWERGRID Warora Transmission Ltd. and POWERGRID Jabalpur Transmission Ltd.--to POWERGRID Infrastructure Investment Trust. The company said it would inform about further developments in due course. The board also announced an interim dividend of INR 4.50 per share.

 

On the National Stock Exchange, shares of the company closed 0.6% higher at INR 318.50.  End

 

Edited by Ashish Shirke

 

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