Energy Stock in Focus: Power Grid Corporation of India

As the global economy increasingly acknowledges the necessity of addressing climate change and increasing electricity demand, energy stocks are taking center stage. 

In this context, Power Grid Corporation of India Limited (POWERGRID) is capturing investor attention with its strong financial performance and strategic advancements in the energy sector.

With its share price currently trading between INR 317.40 and INR 322.55, today's focus is on POWERGRID, a ‘Maharatna’ Central Public Sector Enterprise under the Ministry of Power, Government of India. 

POWERGRID has announced its financial results for the fourth quarter and the full fiscal year ending March 31, 2024. For Q4 FY24, on a standalone basis, the company reported a Profit After Tax (PAT) of INR 4,128 crore and a Total Income of INR 12,254 crore. On a consolidated basis, the PAT stood at INR 4,166 crore with a Total Income of INR 12,305 crore. For the entire fiscal year, the company posted a standalone PAT of INR 15,475 crore and a Total Income (including discontinued operations) of INR 46,215 crore. 

The company has proposed a final dividend of INR 2.75 per share on a face value of INR 10 each (27.50 percent) in addition to the first and second interim dividends of INR 8.50 per share already paid for FY24. This brings the total dividend for the year to INR 11.25 per share, which is 1.69 percent higher than the previous year's total dividend, adjusted for a bonus issue.

In FY24, POWERGRID, along with its subsidiaries, added infrastructure including 19,720 MVA of transformation capacity, 6 substations, and 4,036 circuit kilometers of transmission lines. The company successfully commissioned five Tariff Based Competitive Bidding (TBCB) subsidiaries: POWERGRID Ramgarh Transmission Limited, POWERGRID Bikaner Transmission System Limited, POWERGRID Meerut Simbhavali Transmission Limited, POWERGRID Gomti Yamuna Transmission Limited, and POWERGRID Neemuch Transmission System Limited.

At the end of FY24, POWERGRID and its subsidiaries' total transmission assets comprised 1,77,699 circuit kilometers of transmission lines, 278 substations, and 5,27,446 MVA of transformation capacity. The company maintained an impressive average transmission system availability of 99.85 percent during the fiscal year.

Currently, POWERGRID has a market capitalization of INR 3,03,014 crore, with a 52-week high/low of INR 327.75 and INR 172.50, respectively. 

The company's strategic initiatives and strong financial performance position POWERGRID as a leading player in India's power transmission sector.

For investors focusing on the energy market, POWERGRID is certainly worth keeping an eye on. Stay tuned to Energetica India for the latest updates on POWERGRID and other key players in the energy sector.