Shares of Power Grid Corporation of India declined over 1% in early trade on February 4 after the company reported a 4% drop in its net profit for the third quarter. At 9:45 AM, the stock was trading at ₹279.60 per share, down 1.48% from its previous close.
The state-owned transmission utility disclosed its Q3 earnings postmarket on February 3. Net profit for December 2024 quarter totaled at ₹3,862 crore, down from a similar period a year ago at ₹4,028 crore. Nevertheless, its operational revenue grew 3% sequentially to ₹11,550 crore from ₹11,233 crore. In spite of a rise in revenue, overall income reduced marginally at 1% to ₹11,743 crore down from ₹11,819.7 crore in the preceding financial period.
At the operational level, Power Grid’s EBITDA fell 4% year-on-year to ₹10,048.01 crore, compared to ₹10,482.8 crore in the same quarter last year. The EBITDA margin dropped to 86% from 89% in the previous year’s quarter.
A slowdown in India’s economy lowered demand for power, and, naturally, growth in generating power is slow. India’s power output grew at a slow 3% in the three months between October and December 2024, less than 12% in the same period in 2023. That’s India’s slowest pace of growth in generating power during and in the aftermath of the pandemic of COVID-19.
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Source: Moneycontrol.
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