Power Grid shares fall 5% after Q1 net profit declines

economictimes.indiatimes.com:

Power Grid Corporation fell nearly 5% to Rs 253.7 in Tuesday's trade on BSE after the firm reported a 5% year-on-year (YoY) decline in consolidated net profit to Rs 3,597 crore in the June quarter of FY24. It was Rs 3,801 crore in the year-ago period. Its revenue from operations during the June quarter rose a marginal 1% to Rs 11,048 crore, as against Rs 10,905 crore in the last year's quarter.

During the first quarter, revenue from the transmission business increased by 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. The company's Board has also recommended the 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 the 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. The Board has also approved the 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.

With regards to the bonus issue, Power Grid will inform the record date soon. At 10.04 am, the scrip was trading 3.9% lower at Rs 255.6 on BSE. However, in the last six months, the stock has surged 18%.