PowerGrid Q2 net profit rises 16% to Rs 460 crore

Written by fe Bureaus | Mumbai | Updated: Oct 30 2009, 05:46am hrs
Central transmission utility PowerGrid Corporation's net profit grew 16% to Rs 459.97 crore for the quarter ended September 30 against Rs 396.43 crore for the corresponding period of the previous year. Net sales were up at Rs 1,748.6 crore versus Rs 1,587.7 crore, a rise of 10.13%. Its total expenditure rose to Rs 858.12 crore against Rs 505.28 crore.

PowerGrid Corporation, which is engaged in laying the national grid of 37,000 mw for the inter regional power transfer by the end of 11th plan, hopes the centre to clear a follow-on public offer (FPO) in fiscal 2010-11, said chairman and managing director SK Chaturvedi.

He told FE on Thursday, The government will decide the time schedule for the FPO and the exact percentage of equity that government wants to offload. The loan of $1 billion from the World Bank will start flowing in from the next financial year.

Chaturvedi informed that PowerGrid would have a bond issue of Rs 2,000 crore each in December and February. Its assets will be commissioned from next year and it will lead to a rise in profit. Moreover, due to the revised tariff by the Central Electricity Regulatory Commission pertaining to the transmission systems commissioned up to March 31, 2009, the company has included Rs 25.01 crore and Rs 128.09 crore in transmission income for the Q2 and half year respectively.

The reinstatement of foreign currency loans has resulted in a foreign exchange rate variation loss of Rs 107.73 crore for the quarter against Rs 686.10 crore for the corresponding quarter last year.