Power Grid Q1 Results: Profit Falls Nearly 3%; Receives Nod To Raise Up To Rs 30,000 Crore Via Bonds

Power Grid Corporation of India Ltd. posted a nearly 3% decline in net profit in the quarter ended June. It has posted a consolidated profit of Rs 3,630.50 crore. This is in comparison to profit of Rs 3,723.90 crore in the same quarter of the previous fiscal year, according to its stock exchange notification on Wednesday.

Revenue increased by 1.7% year-on-year for the three months ended June, reaching Rs 11,196.20 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 4.7% year-on-year to Rs 9,146.60 crore. The Ebitda margin contracted to 81.7%.

• Revenue up 1.7% to Rs 11,196.20 crore versus Rs 11,006.10 crore.

• Ebitda down 4.7% to Rs 9,146.60 crore versus Rs 9,602.30 crore.

• Margin at 81.7% versus 87.2%.

• Net profit down 2.5% to Rs 3,630.50 crore versus Rs 3,723.90 crore.

Additionally, the board on Wednesday has given its approval to raise up to Rs 30,000 crore via bonds. It has also given an in-principle nod for the sale of its entire stake in its joint venture Parbati Koldam Transmission.

Among other approvals it has also given a go-ahead to enhance its borrowing limit to Rs 25,000 crore from Rs 16,000 crore.

The board also gave its approval to form a joint venture with Nepal Electricity Authority. The company will also participate in two TBCB projects with the estimated cost of Rs 500 crore.

The shares of Power Grid fell as much as 2.2% to Rs 286.60 apiece. It pared losses to trade 1.48% lower at Rs 288.75 apiece, as of 3:09 p.m. This compares to a 0.14% advance in the NSE Nifty 50 Index.

It has fallen 17.07% in the last 12 months and 6.03% year-to-date.