Power Grid Corp of India fourth-quarter profit climbs as demand rises
BENGALURU (Reuters) - State-owned power transmitter Power Grid Corporation of India Ltd reported a 4% rise in fourth-quarter profit on Friday, as stronger demand for electricity outstripped high costs.
Consolidated profit for the New Delhi-based company rose to 43.2 billion rupees ($528.25 million) in the quarter ended March 31, from 41.56 billion rupees a year earlier.
Power Grid's board of directors recommended a final dividend of 4.75 rupees per share.
With the early onset of summer and rising temperatures, India's power demand in the first two months of the year jumped 10% year-on-year, pushing power transmitters to stretch their capacities to bridge the surge.
Consolidated revenue from operations for the quarter rose almost 15% to 122.64 billion rupees, Power Grid said in an exchange filing.
Revenue from its mainstay transmission segment rose nearly 17% to 122.87 billion rupees, while its relatively minor telecom arm grew 20% to 2.09 billion rupees.
However, the company's consultancy wing swung to a quarterly loss of 135.8 million rupees from a year-ago profit of 2.61 billion rupees.
The company also said that total expenses incurred in the quarter climbed a little over 6% to 71.43 billion rupees.
The power major's consolidated net profit margin dropped to 35%, compared to 39% a year earlier.
Shares of Power Grid Corp closed down 0.83% ahead of results on Friday.
($1 = 81.7800 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Maju Samuel)