Power Grid Corporation of India shares fell over 1 percent in morning trade on February 4, a day after the company reported a strong decline of over 4 percent in Q3 net profit.
Power Grid Corporation of India shares were trading at Rs 279.60 apiece, as seen at 9:45 am. This marks a decline of 1.48 percent from the previous closing price.
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The state-owned Power Grid Corporation of India released its earnings performance results for the quarter ended December in the post market hours of February 3. Its net profit declined 4 percent year-on-year to Rs 3,862 crore. The company had earlier recorded a net profit of Rs 4,028 crore in the corresponding quarter of the previous financial year.
Its revenue from operations stood at Rs 11,550 crore in Q3, marking a 3 percent rise from Rs 11,233 crore reported in Q3 of the preceding fiscal. The company's overall income decreased 1 percent to Rs 11,743 crore in Q3, as against Rs 11,819.7 crore in the corresponding period of FY24.
At the operating level, the company's EBITDA decreased by 4 percent year-on-year to Rs 10,048.01 crore in the third quarter of this fiscal. The corresponding period of the previous fiscal saw EBITDA at Rs 10,482.8 crore. EBITDA margin for Q3 was at 86 percent, as against 89 percent year-ago.
A slowdown in India's economy has dampened the growth in power demand. In the second half of 2024, power generation accounted for just about a quarter of the total growth seen in the first half of the year. From October to December 2024, India's power generation grew by only 3 percent, marking a sharp decline when compared to the 12 percent growth during the same period in 2023. Overall, the power generation growth in 2024 marked the slowest pace since the COVID-19 pandemic.
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