Shares of Power Grid Corporation of India rose by 2.9% to a high of Rs 215.45 on the National Stock Exchange after the largest power transmission company in the country reported a consolidated net profit of Rs 3,293 crore, a 2.2% decline from Rs 3,368 crore reported in the corresponding quarter last year.

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Sequentially, the net profit was down 2.5% from Rs 3,376 crore. The government-owned company’s consolidated revenue rose 3% to Rs 10,447 crore from Rs 10,142 crore in the year-ago period. Compared to the September 2021 quarter, the revenue was up 1.8% from Rs 10,267 crore.

The company announced a second interim dividend for 2021-22 at Rs 5.50 per share. It will be paid on March 9, 2022.

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The revenue growth was driven by healthy asset addition in the base business that supported the growth of transmission revenue during the quarter. Revenue from PowerGrid’s primary transmission business grew 2.3% year on year to Rs 10,275 crore from Rs 10,043 crore. Revenue rose 2.2% quarter on quarter from Rs 10,054 crore.

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Earnings before interest and tax (EBIT) from the transmission business were 9% down year on year to Rs 5,790 crore. In the September quarter, EBIT was Rs 5,460 crore.

Revenue from the consultancy business was Rs 173 crore, 41% higher than Rs 123 crore in the corresponding quarter last year. Sequentially, the business saw an 8.7% decline from Rs 190 crore. EBIT was 57% higher year on year while there was a 38.7% decline from the previous quarter.

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Revenue from its telecom brand Powertel was down by 10.5% on-year to Rs 185 crore from Rs 207 crore. On a sequential basis, there was a decline of 3% from Rs 191 crore.

The business generated an EBIT of Rs 69 crore during the quarter, a 27% decline year on year and a 14% decline quarter on quarter.

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The operating margin for Q3 FY22 was down 300 basis points (bps) year on year to 87%, while the quarter-on-quarter decline was 100 bps. Net margins stood at 31%, down 200 bps from 33% recorded during the same period a year ago. The net margin for Q2 FY22 stood at 32%.