POWER GRID Announces Quarterly Results (2QFY20); Net Profit Up 14.2%
Thu, 14 Nov

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

POWER GRID Quarterly Financials

No. of Mths
Qtr. Ending
3
Sep-18*
3
Jun-19*
3
Sep-19*
QoQ ChangeYoY Change
Net SalesRs m82,83088,04186,850-1.4%4.9%
Other incomeRs m4,0694,2434,98217.4%22.4%
TurnoverRs m86,90092,28491,832-0.5%5.7%
ExpensesRs m13,1069,07711,28124.3%-13.9%
Gross profitRs m69,72578,96475,569-4.3%8.4%
DepreciationRs m25,48326,59127,4823.4%7.8%
InterestRs m23,09523,59123,7610.7%2.9%
Profit before taxRs m25,21633,02529,308-11.3%16.2%
TaxRs m6,1708,6847,555-13.0%22.4%
Profit after taxRs m19,04624,34221,753-10.6%14.2%
Gross profit margin%84.289.787.0
Effective tax rate%24.526.325.8
Net profit margin%21.926.423.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter grew 4.9% on a year-on-year (YoY) basis. The expenses were down by 13.9% YoY during the same period.
  • The company's operating profit increased by 8.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 87.0% in 2QFY20 as against 84.2% in 2QFY19.
  • Depreciation charges increased by 7.8% and finance costs increased by 2.9% YoY, respectively.
  • Other income increased by 22.4% YoY during the quarter.
  • Net profit for the quarter increased by 14.2% YoY. Net profit margins during the quarter increased from 21.9% in 2QFY19 to 23.7% in 2QFY20.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter fell 1.4% on a quarter-on-quarter (QoQ) basis. The expenses were up by 24.3% QoQ during the same period.
  • The company's operating profit declined by 4.3% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 87.0% in 2QFY20 as against 89.7% in 1QFY19.
  • Net profit for the quarter declined by 10.6% QoQ, while net profit margins declined from 26.4% in 1QFY19 to 23.7% in 2QFY20.

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 up from Rs 186.0 to Rs 188.0, registering a Gain of Rs 2.0 or around 1.1%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 1,928.0 (down 0.1%). Over the last one year it has moved down from 1,962.9 to 1,928.0, a gain of 35 points (down 1.8%).

Overall, the S&P BSE SENSEX is up 14.3% over the year.

Current Valuations

At the current price of Rs 188.0, 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 1.7 times.