Posted by Power Grid Corporation of India Ltd. share price (PGCIL) witnessed a significant surge in its share price on 9th February 2024, reflecting positive investor sentiment. The company’s latest annual report sheds light on its financial performance, including revenue, dividend yield, and key financial metrics. Let’s delve into the details of PGCIL’s recent developments and financial data.
Power Grid Corporation of India Ltd. Share Price Dynamics:
On 9th February 2024, PGCIL’s share price experienced a notable increase, closing at ₹288.05 from the previous close of ₹267.95. The day range fluctuated between ₹270.80 and ₹288.05, showcasing dynamic market activity. With a market capitalization of 2.57 trillion INR and a P/E ratio of 16.73, PGCIL continues to captivate investor interest on the National Stock Exchange (NSE).
Dividend Yield:
PGCIL remains steadfast in its commitment to shareholders, offering a dividend yield of 4.10%. This robust dividend yield underscores the company’s financial stability and commitment to value creation for its shareholders, further enhancing investor confidence.
Annual Report Highlights:
PGCIL’s annual report for the fiscal year 2023 presents a comprehensive overview of its financial performance across various segments. FOR MORE INFORMATION CLICK ON THIS LINK – annual report pdf
Income Statement Insights:
In 2023, PGCIL recorded a revenue of 455.81 billion INR, marking a 9.51% increase from the previous year. Despite facing challenges, the company demonstrated resilience with an EBITDA of 401.56 billion INR, reflecting an 8.61% growth. Notably, the net profit margin experienced a decline of 16.33%, primarily attributed to operational challenges.
Annual Data
| INR | 2023 | Y/Y CHANGE |
|---|---|---|
| Revenue | 455.81B | 9.51% |
| Operating expense | 179.15B | 7.48% |
| Net income | 154.17B | -8.36% |
| Net profit margin | 33.82 | -16.33% |
| Earnings per share | 16.58 | 11.40% |
| EBITDA | 401.56B | 8.61% |
| Effective tax rate | 12.91% | — |
Quarterly Data
| INR | SEP 2023 | Y/Y CHANGE |
|---|---|---|
| Revenue | 112.67B | 1.04% |
| Operating expense | 46.36B | -8.06% |
| Net income | 37.81B | 3.60% |
| Net profit margin | 33.56 | 2.50% |
| Earnings per share | 4.24 | 8.09% |
| EBITDA | 99.03B | 5.18% |
| Effective tax rate | 13.17% | — |
Balance Sheet Analysis:
Analyzing the balance sheet, PGCIL maintained a strong financial position with cash and short-term investments amounting to 73.55 billion INR. Total assets stood at 2.50 trillion INR, reaffirming the company’s robust asset base. Furthermore, PGCIL exhibited prudent financial management, with a return on capital of 7.85%.
Annual Data
| INR | 2023 | Y/Y CHANGE |
|---|---|---|
| Cash and short-term investments | 73.55B | 46.52% |
| Total assets | 2.50T | -0.26% |
| Total liabilities | 1.67T | -4.24% |
| Total equity | 830.15B | — |
| Shares outstanding | 9.30B | — |
| Price to book | 3.00 | — |
| Return on assets | 6.69% | — |
| Return on Capital | 7.85% | — |
Quarterly Data
| (INR) | SEP 2023 | Y/Y CHANGE |
|---|---|---|
| Cash and short-term investments | 71.01B | 51.84% |
| Total assets | 2.46T | -2.83% |
| Total liabilities | 1.59T | -6.93% |
| Total equity | 868.85B | — |
| Shares outstanding | 9.31B | — |
| Price to book | 2.87 | — |
| Return on assets | — | — |
| Return on Capital | 7.83% | — |
Cash Flow Management:
The cash flow statement highlights PGCIL’s effective cash management strategies. Despite a decline in net income, the company generated substantial cash from operations amounting to 380.05 billion INR. Moreover, free cash flow increased by 13.54%, reflecting efficient capital allocation and operational excellence.
Annual Data
| (INR) | 2023 | Y/Y CHANGE |
|---|---|---|
| Net income | 154.17B | -8.36% |
| Cash from operations | 380.05B | 45.48% |
| Cash from investing | -61.26B | -913.73% |
| Cash from financing | -292.64B | -1.03% |
| Net change in cash | 26.15B | 225.08% |
| Free cash flow | 183.19B | 13.54% |
Quarterly Data
| SEP 2023 | Y/Y CHANGE | |
|---|---|---|
| Net income | 37.81B | 3.60% |
| Cash from operations | — | — |
| Cash from investing | — | — |
| Cash from financing | — | — |
| Net change in cash | — | — |
| Free cash flow | — | — |
Conclusion:
Power Grid Corporation of India Ltd. continues to chart a positive trajectory amidst evolving market dynamics. With a surge in share price and a resilient financial performance outlined in its annual report, PGCIL reaffirms its position as a cornerstone in India’s power infrastructure sector. Investors remain optimistic about the company’s growth prospects, underpinned by its robust fundamentals and strategic initiatives. As PGCIL navigates through opportunities and challenges, its commitment to sustainable value creation remains unwavering, driving long-term shareholder value and contributing to India’s economic growth story.