Power Grid’s Q2 results show an 8% year-over-year increase in total profit of Rs 3,650 crore

Higher asset capitalization during the previous twelve months as well as the reported quarter were the main drivers of growth.

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Power Grid Corporation Limited announced on November 5 that its consolidated net profit for the second quarter of FY23 increased by 8% to Rs 3,650 crore from Rs 3,376 crore the previous quarter. Sequentially, the profit decreased by 4% from the Rs 3,801 crore posted in the quarter ending in June.

The state-owned power company’s overall revenue increased by 9% year over year to Rs 11,151 crore from Q2FY22’s revenue of Rs 10,267 crore. In terms of sequence, the revenue increased by 2% from the Rs 10,905 crore reported in the preceding quarter.

Greater asset capitalization throughout the preceding year and the reported quarter both contributed to the growth.

97% of the company’s quarterly revenues, or Rs 10,920 crore, were from the transmission industry. These revenues were up 9% year over year and 2% quarter over quarter.

The earnings (EBIT) for the transmission industry increased by 10% YoY to Rs 6,027 crore from Rs 5,460 crore the previous year. The company’s earnings were unchanged sequentially.

The telecom division, which accounted for 2% of the company’s quarterly revenue, grew by 7% year over year and 8% sequentially. At Rs 77 crore, its earnings decreased 4% year over year but increased 3% sequentially.

Only 1% of the overall revenues came from the consultancy industry, which had a year over year decline of 26% and a quarter over quarter increase of 40% to Rs 141 crore. The segment’s earnings (EBIT) fell 68 percent sequentially and by 60 percent on an annual basis to Rs 38 crore.

The operating margin for the quarter was 88 percent, which was 200 bps lower than the prior quarter and 300 bps lower than the margin of 91 percent attained during the same period last year. The operating margin for the quarter was influenced by a 100 bps rise in labour costs and a 400 bps increase in other expenses as a proportion of revenues.

Due to decreased other revenue and increased finance expenses, the net margin was down 200 basis points sequentially from its year-over-year level of 33 percent.

On Friday, the benchmark Sensex closed 113.95 points or 0.19 percent higher at 60,950.36, while shares of Power Grid settled at Rs 226.15 a share on the BSE. The stock has produced a return of 22% over the previous year and has increased by 8.5% in the past month.

The payment of an interim dividend of Rs. 5 per equity share worth Rs. 10 each (or 50% of the paid-up equity share capital) for the fiscal year 2022–2023 was agreed by the company’s board. The stockholders will receive the aforementioned interim dividend on November 30, 2022.

On Friday, the benchmark Sensex closed 113.95 points or 0.19 percent higher at 60,950.36, while shares of Power Grid settled at Rs 226.15 a share on the BSE. The stock has produced a return of 22% over the previous year and has increased by 8.5% in the past month.