Q4 Results: Power Grid Profit Rises On Deferred Tax Adjustment, Beats Estimates
Net profit of the company rose 51.9 percent year-on-year to Rs 3,054 crore, beating estimates.
Power Grid Corporation of India Ltd.’s profit for the quarter ended March rose to beat estimates due to a deferred tax adjustment worth over Rs 6,000 crore.
Net profit for the three-month period rose 51.9 percent year-on-year to Rs 3,054 crore, according to its exchange filing. That was higher than the Rs 2,442-crore estimate of analysts tracked by Bloomberg.
Revenue of the state-run power transmission company rose 18 percent over last year to Rs 9,218 crore in the January-March period. That compares to the Rs 8,779.4-crore estimate by analysts. The company’s revenue from the transmission segment rose 19 percent on a yearly basis to Rs 8,983.8 crore.
Operating profit jumped 19.4 percent year-on-year to Rs 7,793.4 crore and operating margin expanded by 100 basis points to 84.5 percent from the year-ago period.
The company’s outstanding borrowing, excluding external commercial borrowings and inter-corporate borrowings as of March 31, stood at Rs 1 lakh crore, the filing said.
The company owns about 85 percent of the inter-state transmission network and transmits nearly half of the total power generated in India, a Crisil note said prior to the earnings release. The Gurugram-based company’s strong project implementation capability will ensure projects of strategic importance will continue to be awarded to it, the note said.
The company recommended a final dividend of Rs 2.50 per share for the financial year 2018-19, the exchange filing said.
Power Grid Corporation had earlier said that it had paid Rs 1,629.62 crore as interim dividend for 2018-19 to the central government, as per a statement in March.
Shares of Power Grid fell 0.5 percent to Rs 189.30 apiece on Wednesday compared with a 0.57 percent fall in the Nifty Index.
