PowerGrid Q3 Results Preview: Net profit likely to rise 9% to Rs 3,580 crore; margin may drop by 230 bps

PowerGrid is likely to report an 8.7 per cent year-on-year increase in net profit to Rs 3,580 crore for the quarter ended December 2022 boosted by stronger asset capitalisation, according to Zee Business research. The PSU will report its financial results for the three-month period on January 31.

PowerGrid will report its financial results for the December quarter on Tuesday, January 31.

PowerGrid — a state-run power transmission company — is likely to report a net profit of Rs 3,580 crore for the quarter ended December 2022, boosted by stronger asset capitalisation, according to Zee Business research. That translates to growth of 8.7 per cent compared with the corresponding period a year ago, though a second straight quarter of shrinking profit on a sequential basis.

The PSU will report its financial results for the three-month period on Tuesday, January 31.

The company's revenue is estimated to grow 3.4 per cent to Rs 10,798 crore compared with the year-ago period, according to the research.

However, PowerGrid's margin — a key measure of a business's pofitability — is estimated to shrink by 230 basis points on a year-on-year basis to 85 per cent for the third quarter of the current financial year, according to Zee Business research.

The analysts estimate PowerGrid's earnings before interest, taxes, depreciation and ammortisation (EBITDA) at Rs 9,136 crore for the quarter ended December, up 0.2 per cent compared with the year-ago period.

According to Zee Business research, the company's asset capitalisation is expected to grow 50 per cent to Rs 2,700 crore.

PowerGrid shares underperformed the overall market in the quarter ended December 2022, rising 0.8 per cent in value as against a 5.9 per cent gain each in headline indices Sensex and Nifty50.

As of January 30, the PowerGrid stock has declined 1.6 per cent in the past one year while the 30-scrip index has risen 2.6 per cent.