Power Grid Q3 net rises 31 per cent: stock up 4 per cent

Power transmission major Power Grid Corporation of India announced its third quarter result on Wednesday after market hours. Power Grid reported 31 per cent jump in its standalone net profit to Rs 1613.12 crore for the December quarter on account of rise in revenue from transmission business. The results were above analyst expectations on all counts.

Power Grid is a company engaged in construction, operation and maintenance of Inter-State Transmission System (ISTS). The company’s principal business is transmission of bulk power across different states of India. Power Grid’s business also includes telecom and consultancy services.

Total revenue for the company in Q3FY16 increased by 24 per cent on a Y-O-Y (year on year) basis owing to robust performance of the transmission and telecom verticals. Revenue came in at Rs 5406.58 crore up from Rs 4353.62 crore attained in the same quarter of the last fiscal. Operationally it was a beat yet again as EBITDA grew by 28 per cent Y-O-Y in Q3 to Rs 4795.6 crore compared to Rs 3740.12 in the corresponding quarter of the last year. Margins expanded in December quarter by 280 basis points Y-O-Y to 88.7 per cent. Profit After Tax (PAT) for the quarter in review was at Rs 1613.12 crore compared to Rs 1228.91 crore in the same period of last fiscal, reflecting a rise of 31 per cent.

On a segment wise revenue distribution front, Telecom vertical saw 46.34 per cent increase in revenue, Transmission rose by 24 per cent; and consultancy vertical saw a marginal growth by going up 4.33 per cent on a yearly basis.

Sequentially too, company was on the right track as revenues from operations increased by 10 per cent Q-O-Q (quarter on quarter). EBITDA grew by 11 per cent; whereas PAT rose up by 11 per cent on a quarterly basis.

As part of the financial performance for 9MFY16, total sales revenue was augmented by 20.58 per cent. However, profits too increased by a strong 24.14 per cent for the nine- month ending December 2015.

The company also stated that its board of directors at a meeting held on Wednesday approved interim dividend of Rs.0.80 per share of   Rs.10 each, which will be paid on 16 February.

In anticipation of good results, the stock climbed up 4 per cent on Wednesday amidst an overall volatile trading session. Reacting to the good numbers, the stock was up 4 per cent in early morning trade to hit an intra-day high of Rs 146.50.