Q2 Results: Power Grid Corporation’s Profit Meets Estimates Despite Narrow Margin

Power Grid Corporation of India Ltd.'s net profit for the September-ended quarter met estimates despite its margins shrinking.

Net profit for the July-September period rose 8 percent year-on-year to Rs 2,309.5 crore. This was in line with the Rs 2,292-crore estimate pegged by analysts tracked by Bloomberg.

Revenue of the state-run power transmission company rose 14.2 percent to Rs 8,283 crore compared with last year. That compares with the Rs 8,421 crore estimated by analysts.

Earnings before income, tax, depreciation and amortisation was 8 percent higher at Rs 6,972.40 crore. Operating margins contracted 510 basis points to 84.1 percent from the year-ago period.

Earlier in July, the company had indicated that they were unlikely to increase their dividend payout for the fiscal. The dividend remains at Rs 2.80 per share of Rs 10 each.

Other highlights:

• Transmission revenue increased 15.4 percent to Rs 8,153.6 crore.
• Consultancy revenue rose 19.64 percent to Rs 138.61 crore.
• Revenue from the telecom segment fell 6.85 percent to Rs 161.86 crore.