Analyst Meet / AGM - Analyst Meet
On track to achieve FY'17 capex of around Rs 22500 crore
The company held its Analyst Meet on 27th May 2016 and was addressed by key management of the company
Key Highlights
As on 31st Mar'16, the company has 129600 ckm of Transmission lines, 255000 MVA of substation capacities and Availability rate of about 99.92%.
The company added around 13717 ckm of Transmission line in FY'16. The company also commissioned the World's longest multi terminal 800 KV HVDC transmission line connecting NER-Agra region in Mar'16.
Lot of ground level actions have been taken by the government to speed up the execution process of transmission and distribution lines. Terms and conditions for forest clearances were eased and the process was smoothened. Compensation on the right of way was revised and an additional compensation towards diminution of land value and land costs was provided. This will increase costs of land acquisition but the conversion process and ease of land availability will increase. Further, if the date of commissioning is prior to the scheduled date of commissioning, then the developer will not be required to wait for any clearances and can start claiming the transmission charges from actual date of commissioning.
Inter-regional Transmission capacity from Western Region to Northern Region of around 17000 MW is expected to be introduced in FY'17 and in FY'18. This is as compared to 7600 MW of Transmission capacity addition in past 2 years. The plan is based on the transmission congestion management plan and management expects the same to happen in next 2 years.
The company achieved highest ever capitalization of Rs 31788 crore in FY'16. Capex incurred stood at around Rs 22584 crore, thus the company achieved a capitalization to capex ratio of 141% for FY'16 as compared to 97% for FY'15.
Major assets commissioned during FY'16 includes Bareilly-Kashipur line, Meerut-Mog line, Barh-Gorakhpur, Gwalior-Jaipur, Vijayawada-Nellore, Balia-Varanasi, Kudgi-Kolhapur, Ranchi-Dharamjaygarh etc. Also internationally, new transmission lines got connected in between India-Bangladesh and India-Nepal.
Higher interest costs and debt was due to higher capitalization in FY'16. Also higher interest costs were due to funds required for higher land acquisitions and forest clearances made during FY'16.
The company continues to expect to spend around Rs 22000 crore of capital expenditure in FY'17 as well.
Book value per share stood at Rs 81.43 as on Mar'16.
On consultancy side, domestically, the company is working on about 115 projects worth around Rs 14826 crore. Internationally, the company is working on 27 projects of orders worth around Rs 810 crore. Some the major countries include Bangladesh, Nepal, Ethiopia, Nigeria, Afghanistan, Kenya, UAE etc.
In Telecom space, the company has total order book of around Rs 2100 crore and around 79 new clients were added in FY'16. The company is working on National Optic Fibre Network for 7175 gram panchayats and project on National Knowledge Network.
As on Mar'16, the company is working on ongoing projects of around Rs 94000 crore and new projects of around Rs 34000 crore is at different stages. Total work in hand is approximately around Rs 144000 crore.
On track to achieve FY'17 capex of around Rs 22500 crore.
For FY'17, management expects capitalization to cross Rs 31000 crore. It expects to add transmission line of more than 15000 ckm and 12500 of inter regional capacities.
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