>POWER GRID CORPORATION OF INDIA (INDIA INFOLINE)

Robust 28% yoy revenue growth, 3,500ckm added to the network during the year
During the quarter PGCIL witnessed a 28% yoy jump in revenues to Rs18.6bn against Rs14bn in the corresponding period last year, after adjusting for rebates, FERV and Rs2.5bn tax paid. PGCIL lost a dispute against the tribunal for service tax on transmission of power. Adjusting for this, the transmission division reported a 24% yoy growth. Revenues from load dispatch and communication schemes witnessed a 60% jump to Rs1.3bn. Consultancy divison's contibution to the revenues continued to decline for the 4th straight quarter as its share stood at 3% against 5% last year.

Despite providing for wage revision, operating margin expands by 145bps yoy
During the year the company provided Rs2.4 bn towards wage revision. As a result of this its full year operating profit margin was lower by 30bps yoy. During Q4 the company has provided for Rs1-1.4bn towards wage revision. However, healthy revenue growth enabled the company to expand its operating margins by 145bps yoy during Q4 FY09.

Strong PBT performance
PGCIL's PBT grew by 161% yoy before adjusting for extra-ordinaries and 30% after adjusting for extra-ordinaries. The transmission segment spreadheaded this growth with 152% jump in PBT.The division's PBT margin expandedbyppt yoy to 36% against 17.7% in the corresponding period last year.Telecom division continued to report losses at PBT level, however margins improved to(27.3%) againt(54.8%) last year.Overall the company has witnessed 18ppt expansion it its PBT margins during the quarter.

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