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Power Grid: Strong Capitalisation Led Growth - Views on News from Equitymaster
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Power Grid: Strong Capitalisation Led Growth
Jan 30, 2016

Power Grid Corp (PGCIL) declared its results for the quarter ended December 2015. The company reported a robust revenue and profit growth of 24.2% YoY and 31.3% YoY respectively. Here is our analysis of the results.

Performance summary

  • Net sales grew 24.2% YoY led by robust growth from transmission and telecom sector during the quarter.
  • Operating profits grew by 27.2% YoY.
  • Profits after tax grew by 31.3% YoY on the back of a good operating performance.

Standalone financial performance

(Rs m) 3QFY15 3QFY16 Change 9MFY15 9MFY16 Change
Transmission Income 41,817 51,428 23.0% 120,245 143,912 19.7%
Consultancy Income 1,019 1,141 12.0% 2,238 3,025 35.1%
Telecom Income 689 1,027 49.2% 1,959 2,875 46.8%
Other Operating Income 12 470 3879.7% 299 610 104.3%
Total Income from Operations 43,536 54,066 24.2% 124,740 150,422 20.6%
Expenditure 5,840 6,100 4.5% 17,093 17,901 4.7%
Operating profit (EBDITA) 37,696 47,966 27.2% 107,647 132,521 23.1%
EBDITA margin (%) 90.1% 93.3%   89.5% 92.1%  
Other income 1,325 983 -25.8% 3,965 2,775 -30.0%
Depreciation 13,007 15,805 21.5% 36,674 43,980 19.9%
Interest 10,247 12,875 25.7% 29,417 35,456 20.5%
Prior period items 295 10 -96.7% 718 4 -99.5%
Profit before tax 15,473 20,259 30.9% 44,803 55,856 24.7%
Tax 3,183 4,127 29.7% 9,136 11,579 26.7%
Effective tax rate 21% 20%   20% 21%  
Profit after tax/(loss) 12,289 16,131 31.3% 35,667 44,277 24.1%
Net profit margin (%) 29.4% 31.4%   29.7% 30.8%  
No. of shares (m)         5,231.6  
Diluted earnings per share (Rs)*         11.2  
Price to earnings ratio (x)         13.2  

(*On a trailing 12-month basis)

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