Power Grid Q1 Results: Profit falls 5% YoY to Rs 3,597 cr; co announces 1:3 bonus issue

economictimes.indiatimes.com:

Power Grid on Monday reported a 5% YoY fall in consolidated net profit to Rs 3,597 crore in the first quarter. It was Rs 3,801 crore in the year-ago period. The company's Board has also recommended issue of bonus shares in the ratio of 1:3.

This means, for every three shares investors hold, they will get one additional share. The proposed bonus issue is subject to approval of the shareholders of the company in the ensuing annual general meeting. The estimated date by which bonus shares will be credited is 25 September, 2023.

Revenue from operations during the June quarter rose by a marginal 1% to Rs 11,048 crore, as against Rs 10,905 crore in the last year quarter. The Board has also approved raising of funds up to Rs 12,000 crore from the domestic market through bonds under private placement during FY25 in one or more tranches. During the first quarter, revenue from the transmission business increased 1% to Rs 10,829 crore, while that from the consultancy segment fell 46% to Rs 127 crore.

On a sequential basis, net profit fell 17% from Rs 4,323 crore reported in the preceding March quarter. Revenue from operations, on the other hand, dropped 10% quarter-on-quarter. Consolidated EBITDA for the June quarter rose 5% year-on-year to Rs 9,682 crore, while margins came in at 87.6% in the same period.

With regards the bonus issue, Power Grid will inform the record date soon. A company issues bonus shares for their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.