Weak earnings, slow execution play spoilsport for Power Grid

Power Grid Corporation of India's Q3FY25 revenue declined 3 per cent year-on-year (Y-o-Y) to ₹11,200 crore, with operating profit falling 7 per cent to ₹9,500 crore and margin contracting to 85 per cent from 91 per cent Y-o-Y.

- DEVANGSHU DATTA

Other income surged 89 per cent Y-o-Y to ₹500 crore, but regulatory income dropped 62 per cent Y-o-Y to ₹42.5 crore. Profit before tax (PBT) grew 4 per cent to ₹4,900 crore, but higher taxes, up 38 per cent to ₹1,100 crore, led to a 4 per cent Y-o-Y decline in net profit to ₹3,900 crore.

The company has set a capex target of ₹23,000 crore and a capitalisation goal of ₹18,000 crore for FY25. In Q3FY25, it achieved a capitalisation of ₹3,420 crore, up 92 per cent Y-o-Y, and incurred a capex of ₹7,650 crore, up 122 per cent. Work-in-hand projects increased to ₹1,43,700 crore, including regulated and tariff-based competitive bidding (TBCB) projects while gross fixed assets stood at ₹2,88,800 crore, with ₹29,600 crore in capital work in progress. The company has a capex target of ₹3 trillion by FY32.