PGCIL rises for the third consecutive session
The shares of Power Grid Corporation of India Ltd. (PGCIL) were up 1.1 per cent in Friday’s trading session at Rs. 207.55. This marks a gain for the third consecutive session.
The stock rose as much as 13.66 per cent in the last one year. In contrast, the Nifty showcased a gain of 4.89 per cent and the Nifty Energy Index exhibited a gain of 9.7 per cent.
The company posted a positive set of numbers in Q4FY19. On a standalone quarterly basis, total income from operations rose 18.01 per cent YoY to Rs. 9,218.08 crore in Q4FY19 from Rs. 7,811.32 crore in Q4FY18. EBITDA increased by 19.46 per cent YoY to Rs. 7,793.42 crore in Q4FY19 from Rs. 6,524.08 crore in Q4FY18. Net Profit exhibited a growth of 52.34 per cent to Rs. 3,053.96 crore in Q4FY19 from Rs. 2,004.68 crore in Q4FY18. As a result, EPS soared 65.44 per cent to Rs. 5.84 in Q4FY19 from Rs. 3.53 in Q4FY18.
On a consolidated financial basis, total income from operations increased to Rs. 35,059.12 crore in FY19 from 29,941.49 crore in FY18, posting a YoY growth of 17.09 per cent. EBITDA grew 15.77 per cent YoY to Rs. 30,220.54 crore in FY19 from Rs. 26,104.70 crore in FY18. EBITDA margin improved 160 bps YoY to 85.4 per cent in FY19 from 83.8 per cent in FY18, mainly on account of decline in employee costs. Net Profit soared 23.03 per cent YoY to Rs. 9,904.70 crore in FY19 from Rs. 8,050.37 crore in FY18. Consequently, EPS rose 25.61 per cent YoY to Rs. 19.18 in FY19 from Rs. 15.27 in FY18.
The Tariff Based Competitive Bidding (TBCB) projects for FY19 generated revenues and PAT of Rs. 1,056 crore and Rs. 262 crore, respectively. Furthermore, these projects engendered dividends to the tune of Rs. 87 crore for PGCIL. Thus, the company has allocated Rs. 2,500 crore as capex towards these projects in FY20. On the whole, the company has invested equity of Rs. 1,800 crore in its product pipeline. The total projects in the company’s hand are worth Rs. 61,000 crore. The debt-equity ratio stands at 71:29.
Although there was a general slowdown in new transmission projects over the last few years, there is ample scope for growth in the long-run. Delays in the commissioning of the Raigarh-Pugalur HVDC project could impair the pace of growth in FY20.
PGCIL is a power transmission company operating across the segments of Transmission, Telecom and Consultancy. On Friday, its shares opened at Rs. 208.95, and hit a high and low of Rs. 209.80 and Rs. 204.50, respectively. The stock closed at Rs. 204.80, down 1.87 per cent.