Moneycontrol Bureau
State-run electric utilities company Power Grid Corporation of India's third quarter earnings surpassed analysts' expectations on all parameters Wednesday. Profit shot up 31 percent year-on-year to Rs 1,613.1 crore during the quarter on strong revenue and operational performance despite lower other income.
Revenue increased 24.2 percent to Rs 5,406.6 crore in quarter ended December 2015 compared to Rs 4,353.6 crore in year-ago period, driven by telecom business that showed 48 percent growth with EBIT margin expansion of 2000 basis points.
Transmission revenue was up 23 percent with margin expansion of 310 basis points while consulting revenue rose 4 percent with margins flat at 67 percent in Q3.Profit was estimated at Rs 1,508 crore on revenue of Rs 5,265 crore and operating profit was expected to grow 23 percent with margin expansion of 170 basis points on yearly basis, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit (earnings before interest, tax, depreciation and amortisation) surged 28.2 percent year-on-year to Rs 4,795.7 crore and margin expanded by 280 basis points to 88.7 percent during October-December quarter.
Other income declined to Rs 98.2 crore in third quarter compared to Rs 132.5 crore in year-ago period while employee cost slipped 4 percent Y-o-Y to Rs 245 crore in quarter gone by.
Capitalisation of new Agra HVDC line led to higher finance (up 25 percent) and depreciation cost (up 21 percent) during the quarter.
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