Power Grid Q2 Net Profit Declines; Dividend Of Rs 4.5 Per Share Declared — Check Record Date, Other Details

Power Grid Corporation of India announced its first interim dividend of Rs 4.5 per share for the financial year, providing a clear return to shareholders even as the company reported a sequential downturn in its second-quarter consolidated financial performance.

The dividend declaration was a key takeaway that came from the state-owned transmission major’s second-quarter earnings filing. The company is set to pay a total amount of Rs 2,036.57 crore to its 452 crore public shareholders. The Record Date for the purpose of payment of dividend is set on Nov. 10 and the first interim dividend will be paid to the Members on Nov. 1.

The company's operational and profit metrics for the quarter showed signs of strain year-on-year. The consolidated net profit for the quarter fell by 6%, settling at Rs 3,566 crore compared to Rs 3,793 crore recorded in the same period last year. This dip in profitability was closely linked to a sharp contraction in operating efficiency.

• Revenue up 1.8% to Rs 11,476 crore versus Rs 11,278 crore.

• Ebitda down 13.6% to Rs 9,114 crore versus Rs 10,552 crore.

• Margin at 79.4% versus 93.6%.

• Net profit down 6% to Rs 3,566 crore versus Rs 3,793 crore.

Power Grid’s operational earnings or the Ebitda dropped by 13.6%, registering at Rs 9,114 crore compared to Rs 10,552 crore a year ago. Consequently, the Ebitda margin saw a significant contraction, dropping sharply to 79.4% from the robust 93.6% reported in the previous year.

Revenue, however, remained relatively stable, showing a marginal increase of 1.8% year on year, rising to Rs 11,476 crore from Rs 11,278 crore. While revenue held steady, the pressure points in margins and Ebitda were the primary drivers behind the decline in the bottom line. Despite the mixed results, the announcement of the Rs .5 interim dividend signals management’s commitment to rewarding investors.

The scrip closed 0.05% lower at Rs 288 apiece on the NSE after decilining as much as 0.35% during the trade. This decline compares to a 0.16% gains in the benchmark index Nifty 50 at close on Monday.