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- 01 Feb 2023
- ICICIdirect Research
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POWER GRID REPORTS Q3FY23 RESULTS
POWERGRID - 298 Change: -10.60 (-3.43 %)News: Revenue from operations for the quarter increased by 7.5% YoY to Rs 10746.4 crore; largely in-line with our estimate of Rs 10856 crore. From a segmental perspective, core transmission revenues grew by 7% YoY at Rs 10517.6 crore while telecom and consultancy income stood at Rs 209.6 crore and Rs 171.7 crore respectively. On a consolidated basis, revenues grew by 7.8% at Rs 11261.8 crore. Absolute EBIDTA stood at Rs 9379.5 crore vs. expectations of Rs 9314.4 crore. However, the finance costs was higher than estimate at Rs 3036.7 crore vs. estimate of Rs 2250 crore. Other income on the other hand came in higher at Rs 726.1 crore vs. |694.8 crore expected. Coupled with a lower effective tax rate of 8%, the PAT was at Rs 3701.7 crore vs. 3573.3 crore. The company also announced 2nd interim dividend of Rs 5 per share during Q3FY23.
Views: The growth rates in the transmission business has settled in the single digit domain given peak of Transmission capex is behind us, which is reflective from the CWIP the company is carrying on the balance sheet. Going ahead, we believe the roadmap in terms of getting new projects in the renewable segment and likely diversification in the distribution business will set the tone for growth trajectory in the medium to long term.
Impact: Neutral