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Power Grid revenue growth at a high, beats 13 quarters

Q4 profit growth lowest in six quarters, but FY16 net best in 2 years

Power Grid Corporation of India saw its revenue in the fourth quarter (Q4) of financial year 2015-16 (FY16) grow at the highest pace in 13 quarters.

Its standalone Q4 revenues came in at Rs 5,753 crore, 23.4 per cent more than the year-ago quarter. This was the highest year-on-year quarterly growth in the last 13 quarters. In the previous three quarters of FY16, PGCI’s revenues had grown by 23.1 per cent (Q3), 18.1 per cent (Q2) and 19.8 per cent (Q1).

But the transmission major’s net profit growth, at by 13.2 per cent YoY to Rs 1,599 crore in Q4, was the lowest in six quarters.

On a full-year basis, PGCI’s FY16 consolidated revenues saw a sharp YoY rise of 21 per cent to Rs 21,289 crore, a three-year high in terms of growth rate. In FY15 and FY14, the consolidated revenues had grown by 12.8 per cent and 18.9 per cent respectively, while FY13 had seen higher growth of 27.2 per cent in the company’s revenues.

Similarly, its net profit rose by 19.2 per cent in FY16 to Rs 6,015 crore, better than the growth rates in previous two years at 11 per cent (FY15) and 5.9 per cent (FY14) but lower than FY13’s 29.6 per cent.

Like in FY15, about 96 per cent of its consolidated revenues in FY16 came from transmission income while the remaining came from consultancy and telecom income.

PGCI’s balance sheet analysis showed its consolidated long-term borrowings rose from Rs 90,492 crore at in FY15 to Rs 1,01,775 crore in FY16, and short-term borrowings from Rs 1,206 crore to Rs 2,003 crore.

PGCI, controlled by the central government through a 57.9 per cent majority stake, had several institutional investors, including foreign portfolio investors, holding more than one per cent stake in it. FPI Europacific Growth Fund held 3.9 per cent stake in PGCI in March, followed by Life Insurance Corporation of India’s 2.5 per cent stake, ICICI Prudential Top 100 Fund (2.3 per cent), Comgest Growth Emerging Market Fund (1.4 per cent), New World Fund Inc (1.3 per cent), Capital World Growth and Income Fund (1.2 per cent), Magellan (1.2 per cent), American Funds Insurance Series International Fund (1.1 per cent) and HDFC Equity Fund (1.0 per cent). Together, FPIs held 26.3 per cent stake and domestic institutional investors held 8.3 per cent stake in PGCI.

On Thursday, the company also announced a final dividend of Rs 2.3 per share, following an earlier interim dividend of Rs 1.5 per share.