Power Grid Q4 Results: Profit Falls 3.6%, But Meets Estimates

Power Grid Corp.'s consolidated net profit fell 3.6% in the fourth quarter of financial year 2024.

The state-run power transmission major's profit decreased to Rs 4,166 crore, in comparison with Rs 4,323 crore in the year-ago period, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had set a consensus estimate of Rs 4,160 crore.

• Revenue from operations fell 2.5% to Rs 11,978 crore (Bloomberg estimate: Rs 10,594.4 crore).

• Ebitda or operating profit decreased 7.6% to Rs 10,099 crore (Estimate: Rs 10,634.2 crore).

• Margin contracted to 84.3% versus 89%.

• Net profit fell 3.6% to Rs 4,166 crore (Estimate: Rs 4,160 crore).

Revenue from the transmission segment dropped to Rs 11,766.40 crore from Rs 12,286.94 crore a year ago. However, revenue from the consultancy business was reported at Rs 234.91 crore, as against a loss of Rs 13.58 crore a year ago.

Contribution from the telecom segment also rose to Rs 249.68 crore from Rs 208.81 crore a year ago.

Total expenses during the quarter fell to Rs 7,066.23 crore from Rs 7,143.22 crore a year ago, on the back of a drop in finance cost and depreciation and amortisation expenses.

While the finance cost came lower at Rs 1,928.13 crore from Rs 2,475.12 crore a year ago, the depreciation and amortisation was marginally lower at Rs 3,259.02 crore from Rs 3,313.99 crore a year ago.

The power transmission major recommended a final dividend of Rs 2.75 per share for FY24. This is in addition to the first interim dividend of Rs 4 per share and second interim dividend of Rs 4.50 per share paid earlier.

The company has also received board approval to raise Rs 5,000 crore as rupee term-loan from a consortium of bankers, but did not disclose any details.

Shares of Power Grid closed 0.1% higher on the BSE, as compared with a 0.4% gain in the benchmark Sensex.