MUMBAI: Power Grid Corp. of India Ltd reported better-than-expected performance for the March quarter (Q4 FY20). Consolidated revenue and profit grew 8-9%. The growth was driven by its mainstay transmission business, with revenues growing 8.2% year-on-year. The stock rose about 2% in early deals on Monday.
Given the slowdown in capital expenditure and capitalisation (asset addition), many analysts had expected to company to report subdued financial performance.
According to Motilal Oswal Financial Services Ltd, Power Grid is estimated to have incurred capex of ₹15,300 crore and capitalised assets worth ₹18,200 crore last fiscal. This is lower than ₹25,807 crore of capex and ₹27,325 crore of capitalisation in FY19.
