Power Grid Q3 results

Last updated: 12 Feb, 2021 | 02:04 pm

Power Grid Q3 results

Profit jumps: Power Grid has reported a 26% yearly rise in consolidated net profit to Rs 3,368 crore in Oct-Dec 20 period. Analysts had earlier estimated net profit to be at  Rs 3,000 crore. The bottomline was aided by lower finance cost and higher revenues.

Revenue beats estimates: Revenue from operations in Q3FY21 increased 8.3% to Rs 10,142.5 crore, compared to Rs 9,364.4 crore in the corresponding period. Analysts had earlier anticipated revenues of around Rs 9,460 crore. 

Transmission business shows strong growth: Power Grid's transmission business, the main segment of the company, recorded a 9.3% on-year in revenue at Rs 10,042.97 crore. The telecom segment registered a 4.5% growth in revenue at Rs 206.85 crore.

Stable margins: Power Grid's EBITDA grew by 8.1% to Rs 8,914.5 crore compared to same period last year. But EBITDA margin contracted to 87.9% in Q3FY21, from 88.1% in the corresponding period previous year.  

Inv IT IPO soon: Power Grid has filed draft prospectus for its proposed infrastructure trust (InvIT) with five assets. The company proposes to raise up to Rs 5,000 crore. This will be the first InVIT in the country to be floated by a public sector company. The offer includes fresh issue as well as offer- for-sale. The management hopes to list this InvIT in March 2021. 

Power Grid has reported a healthy set of numbers in the Oct-Dec 20 period. The company recently won three projects for the evacuation of power from Rajasthan renewable zone (8.1 GW) after a year without any award wins. According to CLSA, the resumption of transmission awards, led by renewables, will improve growth visibility which has been dwindling over the past four years.

CLSA notes that Power Grid's capex fell 41% on-year in the previous fiscal, as India neared the completion of its national grid capex, including select green corridors. Power Grid has guided for a further 31% YoY fall in FY21 capex, improving its dividend visibility. The shares ended 0.8% lower at Rs 212 on Friday.

Finzoom Investment Advisors Private Limited (Brand Name - INDmoney, INDwealth, IND.app, IND.money, INDsave.com) makes no warranties or representations, express or implied, on products and services offered through the platform. It accepts no liability for any damages or losses, however, caused in connection with the use of, or on the reliance of its advisory or related services.

Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Performance and returns of any investment portfolio can neither be predicted nor guaranteed.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Marketing and distribution of various financial products such as loans and deposits are powered by Finzoomers Services Private Limited.

INDmoney, INDwealth, IND.app are brand and product of Finzoom Investment Advisors (P) Limited.

© Finzoom Investment Advisors Private Limited

[SEBI RIA Registration No: INA100012190] [Type of Registration: Non-Individual] [Validity of registration: December 17, 2018-Perpetual] [Address: 616, 6th Floor, Suncity Success Tower, Golf Course Extension Road, Sector – 65, Gurugram, Haryana- 122005] [Principal Officer details: Mr. Gaurav Sharma, Email id: principalofficer@indwealth.in, Contact No. 8800826254] [Corresponding SEBI local office address: Securities and Exchange Board of India, Local Office, First Floor, SCO 127-128, Sector 17C, Chandigarh-160017]

[ARN - 151913] [Platform Partner : BSE (Member code-24801)] [CIN - U67190HR2018PTC073294] [GST No : 06AADCF3538Q1Z8]