The shares of the electric power transmission company gained up to 5.3 percent after the company has been declared the successful bidder to establish an inter-state transmission system for the evacuation of power.
With a market capitalization of Rs 2.60 lakh crore, the shares of Power Grid Corporation of India Ltd were trading at Rs 279.65 per share, increasing around 2.10 percent as compared to the previous closing price of Rs 274.35 apiece.
According to the company filing, Power Grid Corporation of India Ltd has been declared the successful bidder to establish an inter-state transmission system for the evacuation of power from Rajasthan REZ Phase IV, from a potential renewable energy zone in the Khavda area of Gujarat under Phase IV, and from Rajasthan REZ Phase IV. These projects are on a build, own, operate, and transfer (BOOT) basis in Gujarat and Rajasthan.
Moreover, The Board of Directors for Bonds has approved the raising of Bonds as Unsecured, Non-convertible, Non-cumulative, Redeemable, Taxable Powergrid Bonds Issue(s) during FY 2024-25 in one or more tranches/series up to Rs 12,000 crore.
Looking into the company’s financials, the revenue increased by 39 percent, from Rs 11,262 crore in Q3 FY23 to Rs 11,550 crore in Q3 FY24. During the same period, net profit increased by 2.5 percent, from Rs 3,645 crore to Rs 4,028 crore.
The company’s profitability measures show a decline in return on equity (RoE) from 22.06 percent in FY 21-22 to 18.57 percent in FY 22-23, while, during the same period return on capital employed (RoCE) increased from 12.02 percent to 12.81 percent. In contrast, the net profit margin (NPM) was 34.00 percent in fiscal year 22-23.
In the company’s recent shareholding pattern, the Promoters of the company own 51.34 percent while Retail shareholders own a 3.37 percent stake in the company, and Foreign Institutional Investors own a 30.51 percent stake.
Power Grid Corporation of India Limited is a power transmission business that plans, implements, operates, and maintains the Inter-State Transmission System (ISTS), as well as provides communications and consultancy services. Transmission Services, Consultancy Services, and Telecom Services are the three business sectors of the company.
Written by:- Abhishek Singh
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