Energy Grid Company, a Maharatna Central Public Sector Endeavor (CPSU) and the most important electrical energy transmission firm, reported a weaker-than-expected efficiency for the second quarter of monetary yr 2025 (Q2 FY25) on Wednesday, November 6.
The corporate posted a consolidated income of ₹11,277 crore for Q2 FY25, marking a marginal improve of 0.1% in comparison with ₹11,267 crore posted in the identical interval final yr. Income from the transmission section, which constitutes 99% of the corporate’s complete income, stood at ₹11,197 crore, up from ₹10,991 crore in Q2 FY24.
The working revenue for the quarter stood at ₹9,701 crore as in comparison with ₹9710 crore in Q2 FY24. The EBITDA margin got here in at 86%, barely under Road expectations of 87.4%. The corporate had posted an EBITDA margin of 87% within the June quarter.
Finance prices for the quarter elevated by 20%, rising to ₹2,441 crore from ₹2,038 crore in Q1 FY25. In the meantime, consolidated internet revenue in Q2 FY25 stood at ₹3,793 crore, reflecting a modest 0.3% improve from ₹3,781 crore posted in the identical interval final yr.
The corporate’s board of administrators authorized an interim dividend of ₹4.50 per fairness share of ₹10 every. “1st Interim Dividend might be paid to the Members on Wednesday, 4th December 2024. Additional, as intimated earlier, the report date for the aim of cost of dividend shall be Thursday, 14th November, 2024, the corporate mentioned in its regulatory submitting.
Inventory down 13% from latest highs
The inventory has skilled revenue reserving in latest months, resulting in a 13.11% decline to ₹318.45 from its latest peak of ₹366.20 per share. Between Might 2020 and September 2024, the inventory noticed a exceptional one-way surge, posting a stellar 302% achieve.
Earlier in September, home brokerage agency Motilal Oswal initiated protection on the inventory with a ‘purchase’ ranking and set a goal worth of ₹425. The brokerage highlighted India’s formidable aim to increase its renewable power capability to 500 GW by 2030, together with the upcoming battery storage and pumped hydro initiatives, and the nation’s aspirations to take part in international power initiatives like ‘One World, One Grid’ as key development drivers for the corporate.
In April, international brokerage agency Goldman Sachs additionally initiated protection on the inventory with a goal worth of ₹355 per share. It estimates that India’s energy transmission capital expenditure will exceed USD 500 billion by FY50, accounting for about 30% of the full power transition capital outlay.
