POWER GRID Announces Quarterly Results (1QFY21); Net Profit Down 34.9%

Tue, 22 Sep

POWER GRID has announced its results for the quarter ended June 2020. Here is a detailed performance review of the same:

POWER GRID Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-19*	3 Mar-20*	3 Jun-20*	QoQ Change	YoY Change
Net Sales	Rs m	88,041	97,045	89,887	-7.4%	2.1%
Other income	Rs m	4,243	7,051	6,314	-10.4%	48.8%
Turnover	Rs m	92,284	104,095	96,201	-7.6%	4.2%
Expenses	Rs m	9,077	16,323	11,116	-31.9%	22.5%
Gross profit	Rs m	78,964	80,721	68,022	-15.7%	-13.9%
Depreciation	Rs m	26,591	28,635	27,970	-2.3%	5.2%
Interest	Rs m	23,591	26,044	22,786	-12.5%	-3.4%
Profit before tax	Rs m	33,025	33,093	23,580	-28.7%	-28.6%
Tax	Rs m	8,684	11,024	7,731	-29.9%	-11.0%
Profit after tax	Rs m	24,342	22,069	15,849	-28.2%	-34.9%
Gross profit margin	%	89.7	83.2	75.7
Effective tax rate	%	26.3	33.3	32.8
Net profit margin	%	26.4	21.2	16.5

Year-on-Year Performance:

• The company's operating income during the quarter grew 2.1% on a year-on-year (YoY) basis. The expenses were up by 22.5% YoY during the same period.
• The company's operating profit declined by 13.9% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 75.7% in 1QFY21 as against 89.7% in 1QFY20.
• Depreciation charges increased by 5.2% and finance costs declined by 3.4% YoY, respectively.
• Other income increased by 48.8% YoY during the quarter.
• Net profit for the quarter declined by 34.9% YoY. Net profit margins during the quarter declined from 26.4% in 1QFY20 to 16.5% in 1QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 7.4% on a quarter-on-quarter (QoQ) basis. The expenses were down by 31.9% QoQ during the same period.
• The company's operating profit declined by 15.7% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 75.7% in 1QFY21 as against 83.2% in 4QFY20.
• Net profit for the quarter declined by 28.2% QoQ, while net profit margins declined from 21.2% in 4QFY20 to 16.5% in 1QFY21.

To see how POWER GRID has performed over the last eight quarters,please visit here.

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POWER GRID Share Price Performance

Over the last one year, POWER GRID share price has moved down from Rs 196.4 to Rs 168.4, registering a Loss of Rs 28.0 or around 14.2%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 1,635.2 (down 2.2%). Over the last one year it has moved down from 1,921.8 to 1,635.2, a gain of 287 points (down 14.9%).

Overall, the S&P BSE SENSEX is up 3.3% over the year.

Current Valuations

At the current price of Rs 168.4, the price to earnings (P/E) ratio of POWER GRID stands at 10.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.5 times.