Power Grid's Q1 performance reflects in the share price movement

Government promoted, power frontliner Power Grid Corporation of India has posted positive topline and bottom-line numbers in Q1FY17. On the day of result i.e. Aug 16, the stock has tumbled post declaration, to close flat to negative at 177.55 levels.The share price of the company has remained in consolidation for nearly two weeks at its all-time high. However, the shares have outperformed the benchmark in last one year.

Company’s standalone revenues for Q1FY17 have come in at Rs 6069 crore as against Rs 5753.6 crores in the previous quarter, recording an increase of 5.5 per cent. EBITDA, that accounts for 88 per cent of the sales, too has increased by 5.5 per cent from Rs 5087 crore to Rs 5369 crore owing to increased other income.

Net profits have risen by 12.7 per cent with grace adjustments (deferred asset for deferred tax liability) of Rs 901.57 crores. Net profits have come in at 1801.77 crore as compared to Rs 1599.05 crores. However, after removing the adjustments, company’s net profits have dropped tremendously by 43.7 per cent to Rs 900 crores.
Year on year revenues for the company have grown at 28.7 per cent from Rs 4717 crores. EBITDA has risen by 29.8 per cent from Rs 4137 crore. YoY net profits stand at Rs 1366.51 crore with an increase of 31.9 per cent. However, excluding adjustments the net profits have witnessed a drop of 34.1 per cent.

A high debt Power Grid is engaged in construction, operation and maintenance of inter-state transmission systems. The company’s main business includes transmission of bulk power across different states of India. The company has also diversified into telecom and consultancy services.