The company's net profit during the corresponding quarter last fiscal stood at Rs 1,239.2 crore.
Its total income during the July-September quarter increased five per cent to Rs 4,309.26 crore from Rs 4,104.43 in the year-ago period.
The company's finance cost increased by 23.41 per cent to Rs 989.09 crore from Rs 801.41 crore in Q2 FY14.
"The decline in profits cannot be directly compared to the performance of last quarter as the Q2 FY14 witnessed gain of Rs 157.14 crore towards income from consultancy sale of  products, which was not realised this quarter," company's chairman and managing director R N Nayak told reporters here.
Apart from this, the transmission income in the last quarter included Rs 209.71 crore being recognised as one time differential tariff for one of a projects in Burma.
"If the one time gains are separated from the total income, the profits as well as the income from operations would have been much better," he said.
The Navratna company has so far spent Rs 3321.31 crore out of the Rs 5,321 crore it raised through FPO last year for funding its projects.
PGCIL currently owns and operates transmission network of about 1,11,700 ckm and 186 extra high voltage double current (EHVAC) and high voltage double current (HVAC)  substations having transformation capacity of more than 2,18,000 MVA.