Power Grid Q2FY21: Net profit rises 23.4% year-on-year to Rs 3,117.4 crore

• Maharatna Power PSU Power Grid posted a rise of 23.4 percent in net profit in Q2FY21 results

• Power Grid stocks open on higher note Thursday morning

New Delhi/Gurugram: India's power lighter Power Grid corporation has posted a strong quarter 2 results. The Maharatna power PSU's net profit rose in the quarter ended September despite project delays as its other income rose too. Power Grid's net profit rose 23.4% year-on-year to Rs 3,117.4 crore in the July-September period as against Rs 2,853-crore in the corresponding period last year. PGCIL gave this information in a regulatory filing on Wednesday.

Power Grid's revenue increased 4.29% over the last financial year to Rs 9,058 crore. The forecast for the same, however, was Rs 9,445-crore. The operating profit of the power PSU increased by 5.48% to Rs 7,971 crore, against the estimated Rs 8,235 crore. Margin expanded to 88% from 87% earlier. The revenue from the transmission segment rose 6% to Rs 9,034.4 crore, while the consultancy segment revenue fell 38% to Rs 108.4 crore. PGCIL's other income rose 67% to Rs 832 crore while the telecom revenue fell 4% to Rs 190.2 crore. The Company incurred a Capital Expenditure of about ₹ 3,100 crore and capitalized assets worth Rs 10,693 crore (excluding FERV) on a consolidated basis during Q2FY21.

ALSO READ: All discoms have to comply with Energy Conservation Act, says Power Ministry

In a press release issued on Thursday morning Power Grid said "For a six-month period (H1FY21), the PAT and Total Income on a consolidated basis are Rs 5,142 crore and Rs 19,648 crore respectively, which are about 1% and 6% higher with respect to the corresponding period of FY20, while on a standalone basis, the PAT and Total Income are ₹ 5,097 crore and ₹ 19,511 crore respectively, registering a growth of 3% and 6% respectively".

During the quarter, Power Grid commissioned Pole-1 of Bipole-I of the prestigious 6000 MW Raigarh – Pugalur HVDC system despite many challenges and lockdown restrictions encountered during COVID-19 pandemic along with the 1765 km long ±800 kV Raigarh – Pugalur HVDC transmission line traversing through five states, 400 kV D/c Pugalur – Arasur and 400 kV D/c Pugalur – Pugalur transmission lines. The commissioned elements will facilitate power flow of 1500 MW from Western Region to the Southern Region ensuring reliable and quality power supply.
Other major assets commissioned during the quarter are, 400 kV D/C NNTPS – Ariyalur TL, 400 kV D/C Banaskantha – Radhanesda TL and ICTs at Gorakhpur, Bhuj, Radhanesda, Raigarh and Pugalur substations of Power Grid.

Power Grid's physical assets alongwith its subsidiaries at the end of H1FY21 stood at 168,140 ckm of transmission lines, 252 substations and more than 419,800 MVA of transformation capacity.

ALSO READ: Purging discoms of dues for an Aatmanirbhar Bharat

Shares of Power Grid opened on a higher note on Thursday morning. The stocks had closed 1.9% higher ahead of the results compared with a 0.73% gain on Wednesday in the benchmark BSE Sensex.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram. You may follow us on Twitter here and stay updated)