Power Grid shares charge on securing power transmission project in Gujarat

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Shares of Power Grid Corporation India gained up to 2.58 per cent at Rs 323.20 a piece on the BSE in Thursday’s intraday deals after the company was selected as the successful bidder for acquiring Khavda V-A Power Transmission Ltd, a special purpose vehicle (SPV) to establish a transmission system for evacuating power from a renewable energy zone in the Khavda area of Gujarat for Rs 18.95 crore.  

 

The company acquired the SPV from the bid process coordinator – REC Power Development and Consultancy Ltd. 

 

The project involves the development of 6,000 MW, ±800 kV HVDC terminal stations at KPS2 in Gujarat and Nagpur in Maharashtra, the company said in an exchange filing. 

 

It also includes a ±800 kV HVDC KPS2–Nagpur Bipole line spanning approximately 1,200 km across Gujarat and Maharashtra, the LILO (line-in-line-out) of the Wardha–Raipur 765 kV D/c line at Nagpur, and the installation of associated equipment and interconnections at the terminal stations.  

 

Power Grid Corporation of India Ltd (PGCIL), a public sector undertaking, is India's leading electric power transmission company. The company is involved in the implementation, operation, and maintenance of the Inter-State Transmission System (ISTS), as well as providing telecom and consultancy services. PGCIL owns and operates 90 per cent of India's interstate and inter-regional electric power transmission network.

 

Q2 results

Power Grid reported a marginal 0.3 per cent year-on-year (YoY) increase in net profit at Rs 3,793 crore for the second quarter ended September 30, compared to Rs 3,781 crore in the same quarter of the previous fiscal. 

 

Revenue from operations rose slightly by 0.1 per cent to Rs 11,277.8 crore, up from Rs 11,267 crore in the year-ago period. 

 

At the operating level, the company's Ebitda declined 2.1 per cent to Rs 9,701.3 crore in Q2 FY25, compared to Rs 9,908 crore in Q2 FY24. The Ebitda margin stood at 86 per cent during the reporting quarter, down from 87.9 per cent in the same period last year.

 

Powergrid share price history

The company’s stock has outperformed the market year to date as it has risen 35 per cent, while gaining 54 per cent in the last one year. In comparison BSE Sensex has risen 6.5 per cent year to date and 16.8 per cent in a year. 

 

The company has a total market capitalisation of Rs 2.99 trillion. Powergrid shares are trading at a price to earnings multiple of 19.69 times and at an earning per share of Rs 16.37. 

 

At 1:17 PM; the shares of the company were up 2.36 per cent at Rs 322.50 a piece. By comparison, the BSE Sensex was down 0.63 per cent at 77,090.83 level.