This Maharatna PSU Company is the largest electric power transmission company in India. The PGCIL was incorporated in 1989 and it was set up to supply high-voltage direct current, extra-high voltage alternating current transmission lines in focus after receiving LOI from Rajasthan REZ.
Stock Movement:
Power Grid Corporation of India has a market capitalization of Rs. 2,97,665 Crores. Its shares were trading at Rs. 320, a 0.85 percent down from the previous day’s closing price of Rs. 322.80.
What Happened
Power Grid Corporation of India Limited has won two significant transmission projects in Rajasthan’s Renewable Energy Zone Phase-IV. The company received letters of intent on October 21, 2024, for both projects. These BOOT-based projects will strengthen power evacuation from Rajasthan’s 6 GW Bikaner complex. The competitive bidding success demonstrates Power Grid’s expertise in transmission infrastructure development.
For Part A, Power Grid will establish a 765/400/220kV Bikaner IV Pooling substation with STATCOM equipment. The Part B project includes a new 765/400 kV Siwani substation. Both projects involve constructing 765kV and 400kV transmission lines across Rajasthan, Haryana, and Punjab. The company will extend existing substations to accommodate these new lines. These projects advance India’s renewable energy integration goals.
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Financials:
The revenue from operation of Rs. 11,006 crore in Q1FY25, which remained down 0.38 percent YoY is Rs. 11,048 crore in Q1FY24. Quarterly, the company has declined 8 percent in revenue and 10.6 percent in net profit.
In terms of return ratios, the return on equity stood at 19 percent and the return on capital employed stood at 13.20 percent.
About the company:
Power Grid Corporation of India Limited is a leading power transmission company, a Maharatna PSU which is responsible for about 90 percent of India’s inter-state transmission network. Established in 1989, PGCIL operates under a regulated framework. The company primarily generates revenue through electricity transmission, accounting for nearly 95 percent of its income, while also providing consultancy and telecom services.
The business model shows low-risk operations as revenue is based on the availability of transmission lines rather than the volume of electricity transmitted. This model provides strong earnings visibility and stability. PGCIL’s strategic initiatives include expanding its transmission infrastructure and leveraging its telecom capabilities through its subsidiary,
PowerTel. The company aims to enhance grid connectivity and support renewable energy integration, aligning with India’s broader energy goals.
Written by Santhosh
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