Q3FY23 Preview: Power Grid Corporation of India: Revenue seen at Rs 106,530 million, PAT at Rs37,500 million

30 Jan 2023 , 01:33 PM

Result date: 31^st January, 2023

Recommendation: Buy 

Target price: Rs 250

Source: IIFL Research

Power Grid Corporation of India is expected to post decline in capitalization and capex at Rs11.5 billion (down 78% YoY) and Rs19.5 billion (down 44.2% YoY) respectively on a high base. The company capitalized assets worth R207 billion in FY22 and could capitalize assets worth Rs120 billion in FY23. For the December 2022 quarter, the company could post revenue growth of 7% over the year-ago quarter.

While EBITDA could grow 5.6%, growth in Profit After Tax or PAT is pegged at 11.3% over the year-ago quarter.

Important management insights to watch out for:

• Updates on new business avenues such as smart metering 
• Pipeline of transmission projects 

Rs. Million	December 2022 estimates	YoY change
Revenue	106,530	7.0%
EBITDA	91,323	5.6%
Profit After Tax	37,500	11.3%

Source: Brokerage reports