Power Grid hit a Rs 267.50 day high Friday after securing a Rs 1,152 crore annual transmission project in Gujarat.

Here’s what the win is about. Power Grid emerged as the successful bidder through a competitive bidding process to build and operate an interstate transmission system in Gujarat.

This system will help bring in power generated from renewable energy projects located in the Lakadia Renewable Energy Zone, Phase II, which has a total capacity of 7,500 megawatts.

The company received the formal letter of intent for this project on 3 September. The project will run on a build, own, operate and transfer basis, and Power Grid has quoted annual transmission charges of Rs 1,152.49 crore for it.

As part of the scope, the company will set up a brand new 765/400 kilovolt substation at Lakadia II, along with laying 765kV transmission lines across Gujarat, complete with all the necessary equipment.

On top of that, Power Grid will also install and commission a synchronous condenser at the same substation, a piece of equipment used to help maintain voltage stability across the grid.

On the financial side, Power Grid’s numbers for the June quarter were fairly mixed. Consolidated net profit slipped slightly, falling under 1% to Rs 3,598 crore compared to the same quarter last year.

Revenue, however, grew close to 2.7% during the same period. Even though profit growth stayed soft, the company’s core operating earnings, measured through EBITDA, actually rose over 4%, with margins improving as well.

Power Grid remains India’s largest player in electric power transmission and continues to operate under the Government of India as a Maharatna public sector company, handling a major portion of the country’s inter state power transmission network.

Power Grid finally closed the day at Rs 266, up 0.15% or Rs 0.40 from Thursday’s close of Rs 265.60.

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