The share price of Power Grid Corp. fell over 4% on Tuesday to hit over a nine-month low after the company reported a fall in its profit for the third quarter of the current fiscal.
The state-run power transmission major posted a profit of Rs 3,861.6 crore in comparison to Rs 4,028.5 crore in the year-ago period. It also missed the Bloomberg estimate of Rs 4,031 crore.
Revenue decreased by 2.75% year-on-year for the three months ended December, reaching Rs 11,233 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 6.61% year-on-year to Rs 9,358 crore. The Ebitda margin contracted by 351 basis points to 84.91% from 88.42% in the same period the previous year.
The decline in revenue came after its transmission segment, which contributes over 95% of the company's total revenue, saw a 1.5% decline.
Power Grid also announced a second interim dividend of Rs 3.25 per equity share of Rs 10 each, a 32.50% of the paid-up equity share capital. It will be paying the dividend on Feb. 28.
Power Grid Shares Fall Over 4%
Power Grid share price fell as much as 4.12% to Rs 272.10 apiece, the lowest level since April 16, 2024. It pared losses to trade 1.27% lower at Rs 280.15 apiece, as of 10:59 a.m. This compares to a 0.42% advance in the NSE Nifty 50 index.
It has fallen 1.17% in the last 12 months. Total traded volume so far in the day stood at 3.2 times its 30-day average. The relative strength index was at 36.
Out of 22 analysts tracking the company, 14 maintain a 'buy' rating, two recommend a 'hold,' and six suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 22.6%.
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