Power Grid profit jumps on India electricity demand
Power Grid Corporation of India posted a better-than-expected 33% increase in first-quarter profit, as the nation’s biggest electricity transmission company added more power lines, boosting revenues.
Net income for the quarter ended June 30 was 18.02 billion rupees ($270 million), the company said in a statement. Total revenue grew more than 30% to 61.20 billion rupees, driven by a 29% increase in power transmission revenue. Analysts were expecting the company to report a profit of 16.41 billion rupees.
Power Grid is planning to spend over 1 trillion rupees to boost its overall grid capacity to 76,450 megawatts in the five years to March 2017. India, which has integrated its regional grids, has been building transmission networks after the nation suffered the world’s biggest blackout in July 2012 when the northern and eastern grids serving some 680 million people failed.
Consultancy revenue for the April-June quarter rose 35% to 1.20 billion rupees, while telecom revenue increased 26% to 1.10 billion rupees.
Power Grid, the only utility in the country that has overhead optic fiber network used for providing telecommunication services by carriers, has been tapping into the growing demand for Internet services, as Indian mobile phone operators aggressively roll out high-speed networks. The company said in May it plans to spend 225 billion rupees as capital expenditure in the year started in April.