Analyst Meet / AGM - Analyst Meet
The company will exceed the annual capex target of Rs 22500 crore for FY'17 given the thrust by the Centre on Transmission
The company held its Analyst Meet on 28th January 2016 and was addressed by Mr I S Jha CMD of the company
Key Highlights
As on 31st Dec'15, the company has 127266 ckm of Transmission lines, 246004 MVA of substation capacities and Availability rate of about 99.78%. For first 9 months ended Dec'15, 11629 ckm of transmission lines and 14295 MVA of substation capacity were added by the company.
The company incurred a capex about Rs 5368 crore worth of assets during Q3 FY'16. For 9 months ended Dec'15, the total capex stood at Rs 16891 crore. The company capitalized about Rs 17207 crore worth of assets during Q3FY'16, highest ever in a quarter by the company. The total capitalization for whole FY'15 stood at Rs 21760 and for first 9 months ended Dec'15, the capitalization is way above the targets, as anticipated by the management. For 9 months ended Dec'15, the total capitalization stood at Rs 26802 crore.
The capitalization to capex ratio is constantly increasing from about 60% in 2013 to about 77% in 2014, around 86% in 2015. The ratio now is inching upwards of 86%, so far for 9 months ended Dec'15.
The current Capital WIP stands at around Rs 46000 crore. These are the projects at various stages of execution. The Capital WIP peaked out in FY'15 at around Rs 56500 crore and from there on, there has been a continuous decline, because of higher capitalization compared to capex.
There was a clear thrust given on renewable energy projects by the Centre and transmission charges for these projects are waived off.
As on Dec'15, the average monthly billing stands at Rs 1577 crore. Total outstanding as on Dec'15 stood at Rs 2356 crore and transmission outstanding beyond 60 days stood at Rs 393 crore, which is about 7 days of billing.
Some of the major projects commissioned include NER-Agra HVDC interconnection line which is a 1750 km line which passes through 4 states and crosses 40 rivers, 400 kv D/C Khamman-Nagarjunasagar line to facilitate interstate exchange of power in Southern region, Suryamaninagar-Cornilla line between India and Bangladesh which is completed and ready to be operational now. Some of the major inter regional projects in FY'16 at various stages of operations are Barh-Gorakpur, Gwailor-Jaipur, Kudgi-Kolhapur, Gaya-Varanasi, Ranchi-Dharamjavgarh and Champa-Kurukshetra.
On consultancy side, domestically, the company is working on about 117 projects worth around Rs 18700 crore. Internationally, the company is working on 21 projects. Some of the major countries include Bangladesh, Nepal, Ethiopia, Nigeria, Afghanistan, Kenya, UAE etc.
The company is actively working on smart grid works in Bangalore and Puducheri and substation works for Railways.
In Telecom, the company added about 41 new clients and has total order book of around Rs 2100 crore. The company through its optic fibre network works as a backbone to the national long distance 4G telecom network of various 4G telecom operators.
The company is on track to achieve capex plan of about Rs 22500 crore in FY'16. As per the management, Power grid will exceed the target of annual capex for FY'17 which was planned at around Rs 22500 crore earlier.
Central government's push towards transmission and distribution lines is helping Power Grid in incurring strong capex. As per the management, with capacities of coal and particularly hydro and other renewable energy coming on stream in next 18-24months, capex for the transmission lines will have to be incurred in FY'17, which will result in higher capital spend by the company.
The company as of now has no plans to tap the capital market. It will raise around Rs 2000 crore as debt in next couple of months to meet its funding requirements.
The book value as on Dec'15 stood at Rs 81.17.
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