Invest in Power Grid as a play on steady earnings, asset monetisation

Attractive dividend pay-out and low valuations are other positives

Transmission major Power Grid (PGCIL) reported encouraging Q1FY22 results coupled to a strategy of asset monetisation. Consolidated revenues were at Rs 10,392 crore, which is 6 per cent YoY growth over Rs 9,817 crore in Q1FY21 and a fall of 4 per cent QoQ versus revenues of Rs 10,816 crore in Q4FY21.

PAT grew 193 per cent YoY to Rs 5,998 crore, versus Rs 2,048 crore (without exceptional items) and up 70 per cent QoQ versus Rs 3,526 crore. Reported PAT was at Rs 3,341 crore (including extraordinary items) versus Rs 2,935 crore.

Ebitda was at Rs 9,228 crore, a