Power Grid Net Down By 8% Owing To Foreign Exchange Cost

Transmission major Power Grid Corporation’s net profit took a marginal beating in the quarter of December 2013 due to losses the company suffered in foreign exchange fluctuations and rising cost. Company’s net profit dropped from Rs 1129 crore during quarter ending December 2012 to Rs 1042 crore during Q3FY14, a decline of 8%. During this period company’s top line spurted to Rs 3685 crore as against Rs 3369 crore earned in corresponding quarter last year, a rise of 9.4%. 

Biggest setback came in the form of exchange loss and interest cost which rose to Rs 787 crore from earlier levels of Rs 685 crore incurred during corresponding period last year. On the positive side, major respite came in the form of growth in the transmission income, which spurted from Rs 3238 crore to Rs 3469 crore during the period, a growth of 7 %. 

Consultancy income doubled during the period from Rs 67 crore to Rs 148 crore in Q3, while telecom income also increased marginally to Rs 68 crore from the earlier level of Rs 61.5 crore earned during quarter ending December 2012. Company also incurred a deferred tax of Rs 108 crore during the quarter where as this was at Rs 81 crore during the quarter ending December 2012.