PowerGrid's Q1 Results Disappoint Investors
PowerGrid's share price dropped significantly on Tuesday after the PSU power generator reported a 5% year-on-year decrease in its consolidated net profit for the April-June period, amounting to Rs 3,597.2 crore, primarily due to higher finance costs.
PowerGrid's share price dropped significantly on Tuesday after the PSU power generator reported a 5% year-on-year decrease in its consolidated net profit for the April-June period, amounting to Rs 3,597.2 crore, primarily due to higher finance costs. The PowerGrid stock fell by 5.2% or Rs 13.9 to Rs 252.1 per share on the BSE.
At 11:25 am, the stock was close to its lowest point of the day, at Rs 252.3 per share on the stock exchange.
The company's Q1 results, announced after the market closed on Monday, showed a 5.4% year-on-year decline in net profit to Rs 3,801.2 crore for the first quarter of the current financial year. However, its total income increased to Rs 11,257.6 crore for the June quarter, compared to Rs 11,168.54 crore in the same period last year, according to a regulatory filing.
The finance costs for PowerGrid rose to Rs 2,057.2 crore from Rs 1,959.7 crore in the previous year.
PowerGrid mentioned that it spent Rs 1,506 crore on capital expenditure during Q1 FY24. Its gross fixed assets on a consolidated basis stood at Rs 2,70,757 crore as of June 30, 2023, compared to Rs 2,64,838 crore a year ago. The company and its subsidiaries added 4,435 MVA transformation capacity, two GIS sub-stations, and 1,428 ckm transmission lines during the quarter. As part of the Ministry of Power, PowerGrid is India's largest electric power transmission utility.
Regarding past performance, PowerGrid shares have seen significant growth of over 15% in the last 12 months, in line with a 14% rally in the headline Nifty index.
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