Power Grid Profit Misses Estimate As Costs Rise

Power Grid Corporation of India Ltd.'s net profit missed analyst expectations in the three months ended June on higher expenses.

The state-owned power transmission company's net profit in the first quarter rose 13.9 percent over the last year to Rs 2,058 crore, according to its stock exchange filing on Tuesday. Analyst expectations tracked by Bloomberg had pegged profit at Rs 2,087 crore.

Revenue from operations increased 17.3 percent to Rs 7,181 crore. The consensus of analyst estimates tracked by Bloomberg stood at Rs 6,213 crore.

Total expenses rose nearly 23 percent from last year to Rs 4874.6 crore. Employee benefit expense increased 48.7 percent to Rs 403.6 crore, which included Rs 86.1 crore worth of salary hikes, according to the notes to financial statements.

Earnings before income, tax, depreciation and amortisation (EBITDA) was 14.4 percent higher at Rs 6,200 crore. Operating margins contracted 230 basis points from last year to 86.3 percent.

Below are some of the key takeaways from an presentation the company made to institutional investors on Wednesday.

• Capitalised assets worth Rs 3,452 crore
• Rs 6,333 crore capital expenditure
• Awarded contracts worth Rs 3,200 crore during the quarter
• Approved investments to the tune of Rs 1,100 crore

(Updates an earlier version with the takeaways from the company's investor presentation.)