Power Grid’s Profit Growth Misses Estimates In January-March Quarter
Power Grid’s net profit grew 22 percent in January-March year-on-year to Rs 1,916.4 crore.
- Net profit rises but misses Bloomberg consensus estimate by 8%
- Operating profit margins contract due to 60% rise in overall expenses
- Employee costs almost double
- Company will pay a dividend of Rs 3.35 per share
- Board approves plan to raise $500 million of non-sovereign loans from ADB
Power Grid Corporation of India Ltd.’s profit rose in the three months ended March, but missed analyst expectations.
The state-owned power transmission company's net profit in the fourth quarter grew 22 percent over the last year to Rs 1,916.4 crore, according to a stock exchange filing. Revenue from operations went up 17 percent to Rs 6,712 crore.
Analyst expectations tracked by Bloomberg had pegged profit at Rs 2076.7 crore and revenue at Rs 6917.7 crore.
Operating income increased 11.1 percent to Rs 5,618.5 crore, while operating margin narrowed over 4 percentage points to 83.7 percent.
Employee benefit expenses almost doubled to Rs 537.4 crore. Employee costs increased to 8 percent of the total sales. Transmission and other expenses to went up 35 percent. This led to 60 percent rise in total costs for the company which dragged the operating margin.
The board approved a plan to raise $500 million of non-sovereign loans from the Asian Development Bank for a green-energy corridor and a grid-strengthening project, a separate exchange filing said.
The board also approved investment of Rs 445.89 crore for transmission system for Tumkur Ultra Mega Solar Park. It also gave approval for purchase of security equipment for Rs 199.79 crore.
Power Grid will pay a dividend of Rs 3.35 per share.
