Public-sector firm Power Grid Corporation of India Ltd.'s shares slipped in trade on Tuesday, May 20, after reporting flat profit growth for the three months ended March 31, 2025.
Power Grid reported its financial results for the fourth quarter of FY2025, posting a slight 0.6 percent decline in net profit at Rs 4,143 crore compared to Rs 4,166 crore in the same quarter last year.
Operating revenue rose 2.5 percent to Rs 12,275 crore for the quarter ended March, as against Rs 11,978 crore reported during the year-ago period. Meanwhile, total expenses climbed 6.8 percent year-on-year to Rs 7,550 crore.
At 9.30 am, Power Grid shares were quoting Rs 302.15 per share, down 0.6 percent on the NSE.
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The board has also recommended a final dividend of Rs 1.25 per share for FY25, which will be disbursed within 30 days of its declaration at the upcoming AGM.
The company also announced the sale of entire stakes and exit from Torrent Power Grid Ltd and from Sikkim Power Transmission Ltd, both of which are joint venture firms with Torrent Power and Sikkim Urja respectively.
International brokerage Morgan Stanley maintained its 'equal-weight' rating on Power Grid shares, with a target price of Rs 295 per share, which indicates a minor downside of around three percent.
The brokerage stated Power Grid's fourth-quarter performance was in-line with its expectations, as profit was higher as a result of an increase in other income. The brokerage will closely watch updates on newly commissioned projects and recent wins under the tariff-based competitive bidding framework.
Over the past year, shares of Power Grid have tumbled around 6.6 percent, while the benchmark Nifty 50 index has rallied around 10.7 percent during the same time. In the previous session, the stock of the company closed 1.35 percent higher at Rs 304.25 on NSE.
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