Power Grid Corp of India's Q3 profit rises after demand surge

Q3 report: The state-run energy transmission company Power Grid Corporation of India reported a jump in third-quarter profit on Wednesday, buoyed by strong power demand amid a surge in industrial output.

Electricity generation in India rose 8.7 per cent from a year earlier in the December quarter, which analysts attribute to festive activities and strong industrial demand.

Power Grid's consolidated net profit rose 10.5 per cent annually to Rs 40.28 billion in the three months to December 31, climbing for the second straight quarter.

India's industrial output grew at its fastest pace in 16 months in October, with a 20.4 per cent increase in electricity generation, official data showed. Industrial output rose 2.4 per cent in November, and data for December is due later this month.

The increase in industrial power consumption helped push Power Grid's revenue 2.6 per cent higher to Rs 115.50 billion.

Its privately-owned rivals JSW Energy and Adani Power also reported higher third-quarter profits last month, aided by the demand surge.

Meanwhile, Power Grid's expenses fell 9 per cent to Rs 70.76 billion, led by a nearly 19 per cent drop in finance costs.

(With Reuters Inputs)