Power Grid Q4FY23 PAT up just 4% at Rs4,320 crore on tax credits in the year ago quarter

Power Grid reported 14.76% higher revenues for the March 2023 quarter on consolidated basis at Rs12,264cr. Revenues were up 8.90% sequentially. For the quarter the company reported growth in revenues from power transmission and from telecom services. However, its revenues from the consultancy business fell sharply in the quarter. Operating profits of the transmission business were higher by nearly 50% on a yoy basis.

For the quarter, the company reported a sharp spike in the financing costs, something other power companies also had to face in the quarter. Despite the operating profits growing by 40%, the net profits grew by just 4%. This was on account of an exceptional gain of Rs306 crore in the year ago quarter and also tax credits to the tune of Rs912 crore in the year ago quarter. This depressed the yoy growth in net profits.

Financial highlights for Mar-23 compared yoy and sequentially

 Power Grid    

Rs in Crore

Mar-23

Mar-22

YOY

Dec-22

QOQ

Total Income (Rs cr)

₹ 12,264

₹ 10,687

14.76%

₹ 11,262

8.90%

Operating Profit (Rs cr)

₹ 7,749

₹ 5,511

40.61%

₹ 6,897

12.35%

Net Profit (Rs cr)

₹ 4,320

₹ 4,156

3.95%

₹ 3,645

18.52%

 

 

 

 

 

 

Diluted EPS (Rs)

₹ 6.19

₹ 5.96

 

₹ 5.23

 

OPM

63.19%

51.57%

 

61.24%

 

Net Margins

35.23%

38.89%

 

32.37%

 

 

Power Grid has seen its operation profits grow by a healthy 40.6% but net profits growth was hit due to higher interest costs and exceptional gains in the base quarter. While OPM has jumped yoy, the net margins are lower by 366 bps. The company saw worsening of its coverage solvency ratios. The board recommended a final dividend of Rs4.75 per share taking the total dividend for the year FY23 to Rs14.75 per share.

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