Power Grid Q1 Results: Profit Falls On One-Time Impact From Covid-19
Net profit fell 18.5% year-on-year to Rs 1,979 crore.
Power Grid Corp.’s profit fell in the first full quarter affected by the coronavirus pandemic.
The state-run power transmission company saw its net profit fall 18.5% year-on-year to Rs 1,979 crore in the quarter ended June. That compares with the Rs 2,150-crore consensus estimate of analysts tracked by Bloomberg.
The profit was impacted by a one-time rebate of Rs 1,075 crore that was passed on by Power Grid to state-run power distribution companies against the billings of April and June on account of the Covid-19 pandemic.
The company’s revenue rose 2.1% over the year-ago period to Rs 8,988.7 crore, compared with the projected Rs 8,780.7 crore.
Operating profit, or earnings before interest, tax, depreciation and amortisation, fell 0.25% year-on-year to Rs 7,877 crore. Operating margin narrowed to 87.6% from 89.7% a year ago.
Key Highlights
- Transmission segment revenue up 5% at Rs 9,045 crore
- Consultancy segment revenue down 22% at Rs 98.5 crore
- Telecom segment revenue down 3% at Rs 187.6 crore
Shares of Power Grid closed 1.02% higher before the quarterly results were announced, compared with a 0.54% gain in the benchmark Nifty 50 Index.
