Power Grid (Q3 FY14)

India Infoline News Service | Mumbai |

Power Grid reported lower than expected revenue of Rs35.8bn registering a growth of 9.6% yoy, but was lower than 7.9% qoq.

CMP Rs96, Target Rs112, Upside 16.6%
  • Power Grid’s Q3 FY14 numbers were below par on account of lower capitalization and short term access revenues

  • Revenue of Rs36.8bn was higher by 9.6% yoy, but lower by 7.9% qoq and also lower than our estimate of Rs39.2bn

  • The underperformance in topline is largely due to no revenue from short term access and lower capitalisation

  • Reported PAT was lower by 2% yoy and 18.3% qoq to Rs11bn

  • The company capitalized projects worth Rs42.5bn in Q3 FY14; lower than expected run rate

  • Management maintained its guidance in FY14 capex and capitalization target

  • We maintain our BUY rating on the stock with target price of Rs112

Result table (Standalone)
(Rs mn)
Q3 FY14
Q3 FY13
% yoy
Q2 FY14
% qoq
Revenues
36,846
33,617
9.6
39,995
(7.9)
Employee exp
(2,458)
(2,244)
9.5
(2,299)
6.9
Trans,
Admin and Other Exp
(2,688)
(2,142)
25.5
(2,660)
1.0
EBITDA
31,700
29,231
8.4
35,036
(9.5)
OPM (%)
86.0
87.0
(92) bps
87.6
(156) bps
Dep and amort
(9,903)
(8,654)
14.4
(9,660)
2.5
Operating profit
21,798
20,577
5.9
25,376
(14.1)
Other Income
1,148
1,286
(10.7)
1,049
9.4
Finance Cost
(7,874)
(6,848)
15.0
(8,014)
(1.8)
PBT
15,072
15,014
0.4
18,411
(18.1)
Prior Exp
(10)
(6)
-
(55)
-
Tax
(3,995)
(3,717)
7.5
(4,815)
(17.0)
PAT
11,067
11,291
(2.0)
13,541
(18.3)
Effe tax rate (%)
26.5
24.8
174 bps
26.2
35 bps
Pre Excp PAT
10,431
11,297
(7.7)
12,448
(16.2)
Pre Excp PAT margin (%)
28.3
33.6
(530) bps
31.1
(281) bps
BSE 200.00 [0.75] ([0.37]%)
NSE 200.10 [0.40] ([0.20]%)

***Note: This is a NSE Chart

 

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