Power Grid posts 8% rise in net profit despite COVID-19 crisis

Recorded more than 8 percent rise in consolidated net profit to Rs 3,313.47 crore during Q4FY20 despite giving a rebate of Rs 1,075 crore to the discoms and SEBs against the billing of lockdown period.

State-owned Power Grid Corporation (PGCIL) registered 8.2 percent rise in consolidated net profit to Rs. 3,313.47 crore during March 2020 (Q4FY20) period compared to profit of Rs. 3,061.43 crore a year ago same quarter. The company ‘s total income in the quarter rose to Rs 10,507.65 crore, compared with Rs Rs 9,687.91 crore in Q4 March 2019.

This result is despite the directive from the ministry of power to give a one-time rebate of Rs 1,075 crore to electricity distribution companies (discoms) and state electricity boards against the billing of April and May 2020.

Powergrid said that it has considered various internal and external information available up to the date of approval of financial statements in assessing the impact of COVID-19 pandemic on the financial statements for the year ended March 31, 2020.

“There has been no material impact on the operations or profitability of the group during the financial year due to the pandemic. Due to the lockdown, there has been a general fall in the demand for electricity in the country and the revenue realisation of the distribution utilities has been adversely impacted. As a result, delay in realisation of transmission charges from the customers is expected in the next financial year. The Government of India has announced measures to facilitate the liquidation of outstanding dues of the utilities to the generators and transmission licensees which are expected to facilitate the realisation of the group’s trade receivables,” Power Grid said in its financial audit report.

It adds, “The group has adequate credit limits and strong credit ratings to mobilise the required short term funds for its operations including for meeting its debt service obligations.” The company’s consolidated total income stood at Rs 10,507.65 crore in the latest quarter as against Rs 9,687.91 crore in the corresponding period of the previous year. For the FY20, the consolidated net profit of the company stood at Rs 11,059.40 crore compared to Rs 10,033.52 crore in FY 19. This year Power Grid has posted a total income of Rs 38,670.96 crore, up from Rs 35,661.32 crore in FY 19.