This Maharatna PSU stock is engaged in implementing, operating, and maintaining the Inter-State Transmission System (ISTS) while also providing telecom and consultancy services, in focus after setting up new substations and transmission lines in Karnataka and Rajasthan.
Stock Price Movement:
With a market capitalization of Rs. 2,42,838.77 crore, the shares of Power Grid Corporation of India Limited were currently trading at Rs. 261.75 per equity share, down nearly around 0.53 percent from its previous day’s close price of Rs. 263.15.
What Happened:
Power Grid Corporation of India Limited (POWERGRID) has been selected as the successful bidder for two important power transmission projects under the Tariff-Based Competitive Bidding (TBCB) process. These projects aim to improve electricity transmission in Karnataka and Rajasthan.
The first project includes setting up new substations and transmission lines in Karnataka, while the second project involves upgrading substations in Rajasthan. This development will help strengthen the power infrastructure and ensure a more reliable electricity supply in these regions.
Capex Expansion:
Power Grid Corporation (PGCIL) has ramped up its capital expenditure (capex) plans to meet growing demand. For FY25, it has set a capex target of Rs 23,000 crore, an increase from the earlier Rs 18,000 crore.
The company plans to further boost its investments, with projected spending of Rs 28,000-30,000 crore in FY26 and Rs 35,000 crore in FY27. This is a significant jump from previous estimates of Rs 20,000 crore for both years, highlighting its focus on infrastructure expansion.
Project Execution:
In Q3, the company commissioned 1,399 circuit kilometers of transmission lines and added 9,185 MVA in transformer capacity. The company is executing two major HVDC projects, such as the Khavda to Nagpur project, valued at Rs 35,000 crore, and the Pang to Leh project, estimated at Rs 20,000 crore. Both projects are scheduled for completion within the next five years.
Recent quarter results:
Power Grid Corporation of India Limited’s revenue has decreased by 2.74 percent, from Rs. 11,550 crore in Q3 FY24 to Rs. 11,233 crore in Q3 FY25. The net profit has also decreased by 4.30 percent from Rs. 4,028 crore in Q3 FY24 to Rs. 3,862 crore in Q3 FY25.
Written By – Nikhil Naik
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