News: Powergrid reported muted set of Q2FY25 results. Standalone revenue declined 1.5% YoY to Rs 10260.1 crore. From a segmental perspective, core transmission revenue stood at 10273 crore down 2% given past couple of quarters have seen tepid asset addition. EBITDA came in at Rs 8787 crore down 4.6% on back of muted revenues and 29.9% YoY increase in other expenses. Consequently, PAT came in at Rs 3711 crore down 2.2% YoY. The company declared final dividend of Rs 4.5 per share as 1st interim dividend for FY25.
Views: The transmission opportunity over the next 5 years is significant given strong generation capacity addition programme and Powergrid will be one of the key beneficiary. We would await the company’s guidance in terms of capacity addition over the next 3-5 years and use any significant corrections to add the stock.
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