Power Grid Trades As Top Nifty Loser As Revenue, Profit Decline In Q4

Power Grid Corporation of India stock price declined as much as 4 per cent in the Thursday trading session following the release of its fourth quarter earnings report.

The company's net profit for the quarter ended March 2023 fell by 3.6 per cent to Rs 4,166 crore, compared to Rs 4,323 crore in the same period last year.

Revenue also decreased by 2.5 per cent to Rs 11,978 crore, down from Rs 12,286 crore in the corresponding quarter of the previous fiscal year. However, the decline in profit and revenue was largely in line with market expectations.

Power Grid stock traded at Rs 316 in the afternoon session with nearly 3 per cent dip on the National Stock Exchange (NSE). 

Despite the weak earnings report, global brokerage firm Morgan Stanley has maintained its overweight call on Power Grid. This suggested that the brokerage firm believed the company's long-term prospects remain positive, despite the short-term challenges.

Analysts had predicted Power Grid would report muted Q4 results, with profits and revenue declining from a strong base from the previous year.

According to a Bloomberg consensus estimate based on five brokerages, experts had predicted Power Grid would report revenue of Rs 10,594 crore for the quarter, an 18 per cent decrease from the previous year.

Brokerages have a mixed view on stock, 11 brokerages have shared ‘buy’ call, while 7 have called for ‘sell,’ and 3 have recommended ‘hold.’

In terms of stock performance, the Power Grid stock delivered more than 32 per cent year-to-date (YTD) returns.