Q2FY23 Preview: Powergrid Corporation of India: Revenue seen at Rs104,892 million, PAT at Rs37,502 million

4 Nov 2022 , 11:04 AM

Result date: 5^th November, 2022
Recommendation: Buy
Target price: Rs250
(Source: IIFL Research)

Powergrid Corporation of India (Powergrid) could post revenue growth of ~6% over the year-ago quarter.

Brokerages expect the company’s capitalization at Rs22 billion (down 70.9% year-on-year on a high base), while capex is pegged at Rs18 billion (up 30.4% over the year-ago quarter) in Q2FY23. Powergrid capitalized assets worth Rs207 billion in FY22 and brokerages expect it to capitalize assets worth Rs120 billion in FY23.

Its EBITDA could come in at Rs90,022, and register growth of 2.5% over the year-ago quarter.

Powergrid’s Profit After Tax (PAT) could grow 12.6% over the year-ago quarter.

Important management insights to watch out for:
·         Update on plans to foray into the smart metering infra business
·         Capitalized assets

Rs. Million	September 2022 estimates	QoQ change	YoY change
Revenue	104,892	0.50%	5.65%
EBITDA	90,022	2.40%	2.45%
Profit After Tax	37,502	(0.30)%	12.55%

Source: Brokerage Reports