Power Grid reported 8.2% rise in consolidated net profit to Rs 3313.47 crore on a 6.4 percent rise in net sales to Rs 10,148.26 crore in Q4 March 2020 over the same quarter last FY.
Consolidated net profit of the company stood at Rs 11,059.40 crore in FY'20 compared to Rs 10,033.52 crore in FY'19
Mumbai/Gurugram: State-run transmission company Power Grid Corporation Limited (PGCIL) reported impressive Q4FY20 results with consolidated revenue and profit growth of 8.2 percent. The Maharatna company reported an 8.2% rise in consolidated net profit to Rs 3313.47 crore on a 6.4 percent rise in net sales to Rs 10,148.26 crore in Q4 March 2020 over Q4 March 2019. Power Grid shares rose 3.76 percent to Rs 177.80 on Monday by the day end. Given the pandemic crisis and overall market slowdown, the analysts had projected the power PSU to report subdued financial performance. Power Grid's total income in the quarter rose to Rs 10,507.65 crore, compared with Rs Rs 9,687.91 crore in a year-ago period.
This result is despite the directive from the ministry of power to give a one-time rebate of Rs 1,075 crore to electricity distribution companies (discoms) and state electricity boards for the period of lockdown. The government had asked the power transmission PSU to consider rebate on inter-state transmission charges after lockdown hit demand worsening the financial situation of discoms. However, the experts believe that the real impact of the rebate will be reflected in Q1FY21 earnings. Also because of the lockdown and the ongoing pandemic crisis hitting electricity demand and finances of discoms, there will be delays in payments from customers for Power Grid.
The consolidated net profit of the company stood at Rs 11,059.40 crore in FY'20 compared to Rs 10,033.52 crore in FY'19. This year Power Grid has posted a total income of Rs 38,670.96 crore, up from Rs 35,661.32 crore in 2018-19.
"Due to the lockdown, there has been a general fall in the demand for electricity in the country and the revenue realisation of the distribution utilities has been adversely impacted. As a result, delay in realisation of transmission charges from the customers is expected in the next financial year (FY21)," Power Grid said in a statement issued on Monday.
Also, the company board has recommended a final dividend of Rs 4.04 per share ([email protected] 40.40% on the paid-up equity share capital) which is in addition to the Interim Dividend of Rs.5.96 per share ([email protected]% on the paid-up equity share capital) paid on 21 March 2020 for 2019-20 fiscal. The final dividend is subject to the approval of the shareholders at the ensuing annual general meeting of the company. The final dividend would be paid within 30 days from the date of its declaration at the AGM.
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