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Informist, Monday, Feb. 3, 2025

 

--Power Grid Oct-Dec net profit INR 38.94 bln 
--Analysts saw Power Grid Oct-Dec net profit INR 39.61 bln 
--Power Grid Oct-Dec net profit INR 38.94 bln vs INR 39.70 bln year ago 
--Power Grid Oct-Dec revenue INR 101.21 bln vs INR 106.77 bln year ago 
--Power Grid to pay INR 3.25 per share interim dividend 
--Power Grid Apr-Dec net profit INR 110.17 bln vs INR 113.47 bln year ago 
--Power Grid Apr-Dec revenue INR 304.49 bln vs INR 313.41 bln year ago 
--Power Grid Oct-Dec operating margin 99% vs 95% year ago 

 

By Anand JC

 

MUMBAI – The profit after tax and revenue from operations of Power Grid Corp. of India Ltd. for the December quarter declined on year, the fourth consecutive quarter of contraction on an annual basis. While expenses for the reporting period fell on year, tax expenses saw an uptick, weighing on its bottom line.

 

Power Grid's net profit for the December quarter was INR 38.94 billion, down 2% from the year-ago period. Analysts had estimated a bottom line of INR 39.61 billion. Sequentially, the company's net profit grew 5%. The company's revenue from operations for the quarter was INR 101.21 billion, lower than analysts' estimate of INR 114.17 billion, and 5% lower compared to the corresponding period a year ago. Sequentially, the Maharatna enterprise's revenue contracted just over 1%.

 

Power Grid's other income for the December quarter was INR 14.89 billion, 88% higher than the INR 7.9 billion a year ago. This includes balance proceeds amounting to INR 2.45 billion, relating to the company's asset monetisation in some of its holdings, which began in 2021-22 (Apr-Mar).

 

The company generated INR 103.16 billion from its transmission segment during the December quarter, 3.3% lower on year. Power Grid recognised INR 91.43 billion as transmission income based on tariff orders issued by the Central Electricity Regulatory Commission. For transmission income totalling INR 6.42 billion, the regulator is yet to issue tariff orders.

 

Revenue from the consultancy segment during the period was INR 1.88 billion, 27% higher than in the corresponding period a year ago.

 

The company's operating margin for the December quarter was 99%, 400 basis points higher than in the same quarter a year ago, while the net profit margin was 38%, a percent higher than in the year-ago period. Power Grid's tax expenses for the December quarter were INR 9.60 billion, compared to INR 6.60 billion a year ago, registering a 46% year-on-year increase.

 

The total expenses incurred by the company for the final quarter of 2024 fell on year as the fall in finance costs was offset by a substantial increase in its other expenses. Power Grid's expenses for the December quarter totalled INR 67.99 billion, around 2% lower than in the same period a year ago. Finance costs incurred by it dropped 15% to INR 21.27 billion, while other expenses soared to INR 10.04 billion, roughly 50% higher than a year ago. 

 

For Apr-Dec, the company's net profit was INR 110.17 billion, around 3% higher than in the year-ago period. The top line for the first nine months of the ongoing financial year was INR 304.49 billion, around 3% lower than the year-ago period.

 

The board of Power Grid has approved interim dividend of INR 3.25 per share, which will be paid to shareholders on Feb. 28. The record date for the interim dividend payment is Feb. 7.

 

The board also approved investment of INR 3.70 billion towards the implementation of the line-in and line-out of both circuits of its 400 kilovolt Vindhyachal power station – Sasan direct current line at Hindalco Switchyard. The company expects this to be commissioned within 30 months, which is December 2026.

 

The state-owned electric utility major disclosed its December quarter financials after market hours. The stock closed Monday's session with a 2.1% loss on the National Stock Exchange at INR 283.80.  End

 

Edited by Avishek Dutta

 

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