PowerGrid Corporation reported a net profit at Rs 3,292.97 crore

Net profit decline - PowerGrid Corporation reported a net profit at Rs 3,292.97 crore for the December quarter, a decline of 2.21% from Rs 3,367.71 crore in the year-ago period.

Revenue rise - The revenue from operation came at Rs 10,446.88 crore, an increase of 3% YoY from Rs 10,142.48 crore in the year-ago period. 

Revenue from different segments

Consultancy - Consultancy revenue jumped sharply YoY to Rs 171.43 crore but was down sequentially.

Revenue from Transmission business - The revenue from this segment grew marginally by 2.3% on year to Rs 10,275 crore from Rs 10,043 crore reported in the same quarter a year ago. On a sequential basis, the revenues have increased by 2.2% from Rs 10,054 crore.

Revenue from Telecom business - Revenues from the telecom business declined 10.5% YoY to Rs 185 crore from Rs 207 crore. Sequentially, revenue from this segment declined 3% from Rs 191 crore. The telecom business generated an EBIT of Rs 69 crore during the December quarter registering a decline of 27% on year and 14% quarter on quarter.

Margins - Operating margins for the December quarter stood at 87%, down 2% points year-on-year and 1%, sequentially. Net profit margins stood at 31%, down 1% sequentially and annually.

EBIT - Earnings Before Interest and Tax for the transmission business declined 9% on year to Rs 5,790 crore from Rs 6,361 crore. Compared to the previous quarter of the current fiscal, EBIT has improved by 6% from Rs 5,460 crore.

Dividend - The company announced a second interim dividend for the current fiscal at Rs 5.5 per share. The dividend will be credited on March 8.

Review 

Powergrid Corporation reported a rise in topline but the bottomline declined. Some segments showed growth - the transmission and consultancy segment did well in the December quarter. Margins will be a concern for the investors as both operating and net margins declined.

The share closed flat on Wednesday at Rs 209.95 per share.