Power Grid Q1 profit triples on gains from InvIT offer
State-run Power Grid Corporation of India Ltd has posted a three-fold jump in consolidated net profit for the April-June quarter thanks to a one-time gain from the sale of units of an infrastructure investment trust (InvIT).
The transmission utility said it recorded a net profit of Rs 5,998.28 crore for the three months through June compared with Rs 2,048.42 crore a year earlier.
Net profit jumped because of a gain of Rs 3,014 crore on the sale of units PowerGrid Infrastructure Investment Trust during the quarter. Profit before this one-time gain, tax and regulatory deferral charges rose 7.7%.
Power Grid Corp bundled five of its transmission subsidiaries into the InvIT. The InvIT raised Rs 4,993.5 crore by issuing fresh units while Power Grid Corp generated Rs 2,736 crore, after tax, by selling units in the public offering.
Other key details:
1. Operating profit for Q1 came in at Rs 3,862.47 crore, up 7.7% from Rs 3,587.32 crore
2. Consolidated revenue from operations rose 8% from a year earlier to Rs 10,216.5 crore in Q1.
3. Total expenses rose to Rs 6,546.4 crore from Rs 6,277.3 crore a year earlier.
4. The company’s tax expense more than doubled to Rs 1,007.85 crore from Rs 412 crore.
The state-run company said its services were exempted from the lockdown restrictions imposed due to the Covid-19 pandemic and that there has been no material impact on its operations or profitability during the quarter.
However, the company will continue to monitor any material changes to future economic conditions, it said.
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