Analyst Meet / AGM - Analyst Meet
Growth momentum of capex and capitalization will continue to remain in FY'18
The company held its Analyst Meet on 10th February 2017 and was addressed by key management of the company
Key Highlights
As on Dec'16, the company has 134750 ckm of Transmission lines, 280362 MVA of substation capacities and Availability rate of about 99.76%.
The company has incurred capex of around Rs 5170 crore for Dec'16 quarter while it has capitalized assets worth Rs 6850 crore in Dec'16 quarter. Overall, for the 9 months ended Dec'16, total capex incurred by the company stood at Rs crore while total assets capitalized during this period stood at Rs 15970 crore. Management expects the growth momentum of capex and capitalization will continue to remain in FY'18 as well.
So far in FY'17, upto Jan'17, around Rs 34800 crore worth of investment projects have been approved as compared to around Rs 15200 crore worth of project on YoY basis.
Book value of the company as on Dec'16 stood at Rs 92.31 and Capital WIP stood at Rs 45991 crore.
On consultancy side, domestically, the company is working on about 105 projects worth around Rs 16700 crore. The company received orders of around Rs 1300 crore of new projects in Dec'16 quarter. Internationally, the company is working on 17 projects of orders worth around Rs 810 crore. Some the major countries include Bangladesh, Nepal, Ethiopia, Nigeria, Afghanistan, Kenya, UAE etc.
Telecom business revenue was up by 26% YoY in Dec'16 quarter. The National optic fibre backbone project is under work in progress and is expected to be complete in next 12 months. Scope of work enhanced to connect 9,372 Gram Panchayats. Around 5,447 Gram Panchayats are already connected.
Of the 12th annual capex plan, where around Rs 110000 crore was planned for capital outlay in 5 years from FY'13 to FY'17, till Jan'17 a total of around Rs 106140 crore is spent and the remaining will be completed by Mar'17.
As on Dec'16, Power grid has ongoing projects worth of around Rs 110000 crore, new projects of around Rs 13000 crore planned and including the TBCB projects total work in progress amounts to Rs 139000 crore.
Railways present a significant opportunity to Power grid, as railways intent to electrify 90% of its tracks in next 5 years ie in 13th 5 year plan which envisages an opportunity of around 13000r km.
For 13th 5 year plan ( FY 2017-2022), total investment envisaged is Rs 260000 crore. This includes addition of 106000 ckm of transmission lines, 292000 MVA of transformation capacity and 14000 MW HVDC bipolar lines. Power grid expects to received around 100000 crore worth of projects to implement.
The renewable energy ie both solar and wind, has been given enough thrust in the 13th 5 year plan.
The company will raise around Rs 2500 crore from debt market for its financial requirements by Mar'17.
Overall, the growth momentum is expected to continue to remain in 13th 5 year plan as well.
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