Power Grid Corp Q3 net profit narrows to Rs 1,042 crore

Central electricity transmission utility Power Grid Corporation today reported a decline in net profit to Rs 1,042 crore for the quarter ended December 31, 2013, due to costlier borrowings.

The company had posted a net profit of Rs 1,129 crore in the corresponding quarter of the last financial year, Power Grid Corporation said in a stock exchange filing.

The state-run company's total income from operations rose to Rs 3,684.55 crore from Rs 3,368.93 crore in the year-ago period.

The company's finance cost, including borrowings, increased to Rs 787.35 crore as compared to Rs 684.82 crore in the corresponding period of last fiscal.

Power Grid Corporation's other operating income declined to Rs 1.26 crore during the quarter under review from Rs 7.86 crore in the same period last fiscal.

The company's net profit for the nine-month period (April-December 2013) was at Rs 3,321.58 crore as compared to Rs 3,125.06 crore in the same period last financial year.

The Board of Power Grid Corporation had last month approved investments worth Rs 472.58 crore for transmission system upgradation.

The company will invest Rs 374.63 crore for establishing a Unified Real Time Dynamic State Measurement Project with commissioning schedule of 27 months from the date of investment approval.

The Board also approved a sum of Rs 97.95 crore for building a transmission system associated with the contingency plan for evacuation of power from IL&FS power plant with commissioning schedule of 18 months from the date of investment approval.

The company's shares were trading at Rs 95.50, up 1.09%, on the BSE.