Q4FY22 Preview: Powergrid Corporation of India: Revenues seen at Rs10,680 crore, PAT at Rs3,827 crore

20 May 2022 , 04:23 PM

Result date: 21^st May, 2022
Recommendation: Buy
Target price: Rs250
Source: IIFL Research

Powergrid Corporation of India (Powergrid) is set to post stable performance in the March 2022 quarter. Asset capitalization to the tune of Rs4,000-5,000 crore will be a key driver of this performance.

Both transmission and consultancy segments could grow in mid-to-high single digits as compared to the year-ago quarter. Capacity addition has been decent in the quarter under review and is a key positive.

Powergrid’s profitability in the quarter will be aided by flattish interest costs.

Overall, growth in EBITDA is pegged at 7.4%, while that in Profit After Tax (PAT) is estimated at 7.9% over the year-ago quarter.

Important management insights to watch out for:

• Outlook on key business segments
• Margin levers

 

Rs Crore	March 2022 estimates	YoY change	QoQ change
Revenue	10,680	7.5%	0.2%
EBITDA	9,401	7.4%	1.0%
Profit After Tax	3,827	7.9%	12.6%

Source: Brokerage reports