The shares of this Maharatna firm climbed by 4.2 percent to an intraday high of Rs 356.95 apiece from its previous close after the company announced plans to invest upto Rs 40,000 crores for an undersea connection project with Middle Eastern countries.
Share price movement: With a market capitalization of Rs 3,25,195.61 crores, the shares of Power Grid Corporation of India Limited closed at Rs 349.65 apiece. The shares of this company generated an overall return of 76 percent over the past year and 38 percent over the past 6 months.
What happened: According to Mint, Power Grid Corporation of India plans to invest a capex of Rs 2.07 lakh crore by FY32, with 91 percent of the funds going to transmission.
The rest of the funds will go to inter-state projects, cross-border ventures, smart meters, and solar projects. The company has Rs 1.14 lakh crore worth of projects underway and aims to finish Rs 60,000 crore to Rs 65,000 crore worth of projects in the next 2.5 years.
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Financials: Analyzing the financials of Power Grid Corporation of India Limited from the previous quarter to the current quarter, the revenues of Power Grid Corporation of India Limited declined by 8.1 percent from Rs 11,978 crores in Q4FY24 to Rs 11,006 crores in Q1FY25. Also, the net profits generated by the firm fell by 10.6 percent from Rs 4,166 crores to Rs 3,724 crores for the same time period.
Ratios: for the last 12 months, Power Grid Corporation of India Limited has reported a return on equity (ROE) of 17.87 percent and a return on capital employed (ROCE) of 12.72 percent.
Capex and its guidance: The consolidated capital expenditure of Power Grid Corporation of India Limited as of Q1FY25 stood at Rs 4,615 crores. The firm plans to spend a total of Rs 2,07,500 crores on various projects and investments by the year 2032.
Shareholding Pattern: As of June 2024, Power Grid Corporation of India Limited’s shareholding pattern stood at 51.34 percent held by the promoters, 28.73 percent held by foreign institutional investors, and 16.32 percent held by the domestic institutional investors. Also, the DII LIC holds a 2.30 percent stake in the company as of the same period.
About the Company: Headquartered in Gurgaon and Incorporated on the year 1989, Power Grid Corporation of India Limited (PGCIL) is a ‘Maharatna’ Public Sector Enterprise of the Government of India engaged in the business of bulk power transmissions across various Indian states.
Written By Zahal
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