Power Grid Q3 results
Last updated: 12 Feb, 2021 | 02:04 pm
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.