Power Grid Corporation Of India Posted Margin Expansion In Q4

Power Grid corporation of India (PGCIL) is  Central Transmission Utility (CTU) of the country under Ministry of Power and amongst the largest Power Transmission utilities in the world. The company is playing a vital role in the growth of Indian power sector by developing a robust Integrated National Grid and associating in the flagship programme of Government of India to provide Power for all. Its principal business is transmission of bulk power across different States of India. PGCIL business also includes telecom and consultancy services.

Fourth quarter result

PGCIL recently announced its fourth quarter and full year financial result for FY2015. PGCIL's total income increased by 17.99 per cent to Rs 4703 crore in Q4FY15 on yearly basis. Total expenditure of the company increased by 6.9 per cent from Rs 603 crore in Q4FY14 to Rs 645 crore in Q4FY15. Its total expenditure increased largely due to a 20.17 per cent increment in employee cost, a 3.17 per cent increment in other expenses during the same period.

EBITDA of the PGCIL grew by 19.96 per cent to Rs 4058 crore in Q4FY15 on yearly basis. EBITDA margin of the company expanded by 142 basis points to 86.29 per cent in Q4FY15 compared to same quarter of previous financial year. Its EBIT increased by 14.4 per cent to Rs 2640 crore in Q4FY15 on yearly basis but depreciation expenses increased by 31.91 per cent to Rs 1418 crore during the quarter. However, PGCIL's EBIT margin contracted by 176 basis points to 56.14 per cent in Q4FY15 on yearly basis.

PBT of the company increased by 7.27 per cent to Rs 1809 crore in Q4FY15 on yearly basis though interest expense increased by 26.71 per cent to Rs 1038 crore during the same period. Its PAT increased by 20.13 per cent to from Rs 1176 crore in Q4FY14 to Rs 1412 crore in Q4FY15 because tax expenses reduced by 22.33 per cent to Rs 397 crore during the quarter. The company's PAT margin expanded by 54 basis points to 30.03 per cent in Q4FY15 on yearly basis.

On segment-wise, PGCIL's total revenue contributed 94.94 per cent of net sales from Transmission segment amounting to Rs 4559 crore, 3.21 per cent of net sales from consultancy services segment amounting to Rs 154 crore and remaining 1.84 per cent of net sales from telecom segment amounting to Rs 88 crore in Q4FY15.

Full year result

On full yearly basis, PGCIL's consolidated total income increased by 12.65 per cent and stood at Rs 17659 crore in FY15 against Rs 15675 crore in FY14. Total expenditure of the company increased by 5.11 per cent to Rs 2580 crore in FY15 on yearly basis. Its total expenditure increased predominantly due to a 21.15 per cent increment in other expenses, a 8.78 per cent increment in employee cost during the same period.

EBITDA of PGCIL increased by 14.05 per cent to Rs 15079 crore in FY15 compared to previous financial year. EBITDA margin of the company expanded by 105 basis points to 85.39 per cent in FY15 on yearly basis. Its EBIT increased by 8.35 per cent to Rs 9906 crore in FY15 though depreciation expenses increased by 26.82 per cent to Rs 5173 crore during the year. EBIT margin of PGCIL contracted by 222 basis points to 56.1 per cent in FY15 on yearly basis.

PBT of the company increased by only 0.63 per cent in FY15 on yearly basis due to 25.44 per cent increment in interest expense amounting to Rs 4081 crore during the same period. Its PAT grew by 10.97 per cent from Rs 4548 crore in FY14 to 5046 crore in FY15. PAT margin of PGCIL contracted by 43 basis points to 28.58 per cent in FY15 on yearly basis.

PGCIL's total revenue contributed 96.13 per cent of net sales from Transmission segment amounting to Rs 17230 crore, 2.19 per cent of net sales from consultancy services  segment amounting to Rs 392 crore and remaining 1.68 per cent of net sales from telecom segment amounting to Rs 301 crore in FY15.

Shareholding pattern of PGCIL indicates that FII holdings contracted by 3 basis points to 27.55 per cent and DII holdings boosted by 20 basis points 7.94 per cent in March 2015 quarter.

PGCIL is going to invest Rs 2000 crore for transmission projects in Delhi over next 2 to 3 years. The company now has more than Rs 1.3 lakh crore order book of central as well as state funded projects.