Power Grid rises and falls

Power Grid Corporation of India, yesterday announced an over 6% (YoY) jump in consolidated net profit at Rs.3526 crore on a 3.5% rise in revenue from operations at Rs.10,510 crore.

Though it was a flattish performance, what really perked up the stock price was the announcement of bonus in the ratio of 3:1 – one bonus share for every three held.

The PSU also declared a final dividend of Rs.5 for FY2, taking the total dividend paid, for the fiscal at Rs.12/share. The Govt, which holds a 51% stake, stands to gain Rs.3223 crore in dividends for FY21.

The stock price had reacted positively, opening at the day’s high point at Rs.247, up 3% and profit booking soon pushed down the stock into the red – it is currently down 2.5% at Rs.233.