Power Grid shares were in the red on Thursday morning after the company reported its results on the previous day.

What Happened: Power Grid’s Q2 results saw its net profit come at ₹3,793 crore, slightly higher than the ₹3,781 crore it posted in the previous year. The power transmission company's operational revenue also was flat at ₹11,277.76 crore, compared with ₹11,267 crore in the previous year. 

The company's transmission segment revenue increased to ₹11,197.59 crore from ₹10,991.96 crore in the previous year. The consultancy segment's revenue increased to ₹194.62 crore against ₹181.61 crore in the previous year. The telecom segment also increased to ₹305.07 crore from ₹224.99 crore in the same quarter of the previous year. 

The public sector company also announced its first interim dividend of ₹4.50 per share for FY25. The record date for the interim dividend is November 14 and the dividend will be paid on December 4. 

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Manish Chowdhury, Head of Research, StoxBox said the company's revenue from transmission and telecom segments saw strong year-on-year growth. He noted that while there was an increase in expenses compared to previous quarters, it had minimal impact on its margins and profitability. 

"Looking ahead, the government’s focus on infrastructure development, along with increased power demand driven by economic activities, is expected to fuel growth in India’s utility sector. Power Grid’s upcoming renewable energy initiatives, backed by substantial capital expenditure and a resilient business model, signal a promising growth outlook over the long term. Consequently, the company's performance is expected to remain positive, supporting a favourable medium to long-term perspective." Chowdhury added. 

Price Action: Shares of Power Grid were down 0.41% to ₹317.20 on Thursday morning.

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