POWER GRID Announces Quarterly Results (3QFY20); Net Profit Down 7.2%

Mon, 3 Feb

POWER GRID has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

POWER GRID Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-18*	3 Sep-19*	3 Dec-19*	QoQ Change	YoY Change
Net Sales	Rs m	84,712	86,850	89,920	3.5%	6.1%
Other income	Rs m	4,190	4,982	5,049	1.3%	20.5%
Turnover	Rs m	88,902	91,832	94,969	3.4%	6.8%
Expenses	Rs m	9,018	11,281	11,157	-1.1%	23.7%
Gross profit	Rs m	75,694	75,569	78,762	4.2%	4.1%
Depreciation	Rs m	26,047	27,482	28,024	2.0%	7.6%
Interest	Rs m	22,753	23,761	24,740	4.1%	8.7%
Profit before tax	Rs m	31,084	29,308	31,047	5.9%	-0.1%
Tax	Rs m	6,177	7,555	7,933	5.0%	28.4%
Profit after tax	Rs m	24,907	21,753	23,114	6.3%	-7.2%
Gross profit margin	%	89.4	87.0	87.6
Effective tax rate	%	19.9	25.8	25.6
Net profit margin	%	28.0	23.7	24.3

Year-on-Year Performance:

• The company's operating income during the quarter grew 6.1% on a year-on-year (YoY) basis. The expenses were up by 23.7% YoY during the same period.
• The company's operating profit increased by 4.1% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 87.6% in 3QFY20 as against 89.4% in 3QFY19.
• Depreciation charges increased by 7.6% and finance costs increased by 8.7% YoY, respectively.
• Other income increased by 20.5% YoY during the quarter.
• Net profit for the quarter declined by 7.2% YoY. Net profit margins during the quarter declined from 28.0% in 3QFY19 to 24.3% in 3QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 3.5% on a quarter-on-quarter (QoQ) basis. The expenses were down by 1.1% QoQ during the same period.
• The company's operating profit increased by 4.2% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 87.6% in 3QFY20 as against 87.0% in 2QFY19.
• Net profit for the quarter increased by 6.3% QoQ, while net profit margins increased from 23.7% in 2QFY19 to 24.3% in 3QFY20.

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 190.4 to Rs 185.1, registering a Loss of Rs 5.3 or around 2.8%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 1,862.4 (up 1.1%). Over the last one year it has moved down from 1,887.8 to 1,862.4, a gain of 25 points (down 1.3%).

Overall, the S&P BSE SENSEX is up 9.5% over the year.

Current Valuations

At the current price of Rs 185.1, the price to earnings (P/E) ratio of POWER GRID stands at 6.3 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.6 times.