Shares of this Public Sector Undertaking (PSU) under the “Large-cap” category dipped 5.50 percent today after announcing weak results for the quarter ended June 2023. The company has a market capitalization of Rs 1,75,000 crores.
The stocks of Power Grid Corporation of India Limited opened their trading hour at Rs 262 and currently are available for Rs 251 exhibiting a drag of 5.50 percent as compared to the previous closing levels of Rs 266.05 apiece.
The company’s share price reduced post a BSE filing dated 31st July 2023 wherein the company published the financial results for Q1FY23-24. The fundamental parameters assuring the smooth flow of business were affected during recent quarters.
Quarter-on-Quarter, the operating revenues went down from Rs 12,260 crores during Q4FY22-23 to Rs 11,048 crores during Q1FY23-24. In congruence with the pattern, the after-tax profit numbers also reduced from Rs 4,323 crores to Rs 3,600 crores representing a fall of 17 percent.
On a yearly basis, the operating revenues and after-tax profits moved in opposing directions with the former increasing from Rs 10,905 crores during Q1FY22-23 to Rs 11,048 crores during Q1FY23-24, and, after-tax profits, during the same time period, reducing from Rs 3,800 crores to Rs 3,600 crores.
The company faced increased cost pressures YoY causing the net profit margins to take a marginal hit from 35 percent during Q1FY22-23 to 33 percent during Q1FY23-24.
Having a look at the company’s shareholding pattern as per the June 2023 quarter, the President of India holds a 51.34 percent stake in the company. Moreover, Foreign Institutional Investors (FIIs) hold a huge stake of 33.14 percent in the company.
Founded in 1989, Power Grid Corporation of India Limited is an Electric Utility company based in India with activities spanning telecom, transmission, and consultancy segments. The company is one of the few telecom players in the market having a marked presence in remote areas. Geographically, the majority of activities are been carried out in India.
Written by Amit Madnani
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