Power Grid Corporation of India, the state-run power transmission major, has reported a 3.5% increase in consolidated net profit for the first quarter of fiscal year 2025. The profit rose to ₹3,724 crore, compared to ₹3,597 crore in the same period last year. This increase was mainly driven by a fall in expenses, despite a slight decrease in revenue.
Power Grid Q1 FY25 Results Key Highlights:
- Net Profit: Increased by 3.5% to ₹3,724 crore.
- Revenue: Decreased slightly by 0.4% to ₹11,006 crore.
- Expenses: Reduced from ₹6,688.51 crore to ₹6,643.07 crore.
- EBITDA: Decreased marginally by 0.8% to ₹9,602 crore.
- EBITDA Margin: Remained stable at 87.2%.
Reasons for the Increase in Profit:
The primary reason for the increase in profit was the reduction in expenses. The company was able to manage its costs effectively, which helped offset the slight decline in revenue. Additionally, the stable EBITDA margin indicates that the company’s operational efficiency remained strong.
Power Grid Corporation’s Q1 results indicate a steady performance, with a focus on cost management leading to higher profitability. While the slight decrease in revenue could be a concern, the company’s ability to control expenses and maintain a healthy EBITDA margin suggests a positive outlook for the future.
Power Grid Corp Share price performance – NSE: POWERGRID Stock to Watch
Power Grid Corporation’s share price saw a positive performance on July 26, 2024, closing at 344.50 INR up by 1.49% from the previous day’s closing price of ₹339.2. The stock had opened at ₹340.55 and witnessed fluctuations throughout the day, with a high of ₹343.65 and a low of ₹338.6.
Power Grid Corporation’s share price has shown a remarkable performance over the last 6 months, appreciating by over +90.55 (35.66%) as of July 26, 2024. the share price gain around +12.95 (3.91%) in past month and the last 3 months showing a significant increase of 17.78%.
Analysts generally have a positive outlook on Power Grid Corporation’s share price, with the majority recommending a ‘buy’ or ‘strong buy’ rating. This optimism stems from the company’s robust fundamentals, steady growth, and crucial role in India’s power transmission sector.
Analyst Ratings: Out of 20 analysts covering Power Grid Corporation, 6 have given it a strong buy rating, and another 6 have given it a buy rating. This indicates a strong consensus among analysts that the stock is a good investment.
Overall:
While there will be always some risks associated with investing in equity market, the overall sentiment among analysts is positive. The company’s strong fundamentals, growth potential, and government support make it a compelling investment opportunity for many.