from operations in Q3FY21 increased 8.3 percent to Rs 10,142.5 crore, compared to Rs 9,364.4 crore in the corresponding period. At the operating level it grew by 8.1 percent to Rs 8,914.5 crore compared to same period last...

EBITDA margin improved 100bps YoY aided by lower employee benefit expenses. In line with operational performance, PAT increased 23.4% YoY to Rs. 3,117cr, further helped by higher other income and lower...

Q1 revenues were largely in line (refer Exhibit 1), though PAT was ahead of estimates on higher surcharge and dividend income and lower interest costs. It has done a capex of Rs31bn, while capitalization was Rs106bn, during the quarter mainly due to Raipur Pugalur HVDC line of Rs95bn getting capitalised. It has maintained its guidance for a capex of Rs105bn and capitalization of Rs200-250bn in FY21. The current CWIP Rs282bn, while work in hand is Rs410bn. As capex reduces, we believe that it can increase...

17 September 2020 We analyzed details of Power Grid (PWGR)s tariff-based competitive bidding (TBCB) projects from their annual reports. At an aggregate level, in our view, PWGR should be able to generate ~14% equity IRR (assuming a debt-to-equity commissioned TBCB projects varies in the range of 227%. TBCB currently remains small in the overall context (3% FY20 PAT; 5% gross block). However, with increased awarding at the interstate/intrastate level on a TBCB basis, its pie would eventually grow. Over the past one year, PWGR has won ~7 projects on a TBCB basis. We expect profits from TBCB projects to rise to INR7.8b in FY23 from INR3.7b as new projects get commissioned. PWGR also seeks to monetize its TBCB assets through the InvIT mode and has acquired an in-principle approval from the board and the cabinet. PWGRs eight commissioned projects account for a gross block of ~INR125b.

Power Grid recorded standalone revenue of Rs. 8,989cr in Q1FY21 (+2.1% YoY) primarily aided by growth in transmission business. Transmission revenue rose 4.6% YoY to Rs. 9,045cr, which includes Rs. 227cr worth of final tariff orders issued by CERC and Rs. 8,417cr final tariff orders not yet received by CERC for transmission assets....

Q1 revenues were in line with estimates (refer Exhibit 1), though PAT was ahead of estimates on lower interest costs. It has done a capex of Rs19bn, while capitalization was Rs12bn, during the quarter. It has guided for a capex of Rs105bn and capitalization of Rs200250bn in FY21. The current CWIP Rs363bn, while work in hand is Rs510bn. With reducing capex, we believe that dividends payouts can...

was up by 3% to Rs 3357.41 crore. The taxation was Rs 1019.68 crore (a swing of Rs 6239.58 crore from a write back of Rs 5219.90 crore in corresponding previous period) and thus the PAT was down by 72% to Rs 2337.73 crore. The regulatory income was Rs 975.74 crore (a swing of Rs 6401.1 crore from an expense of Rs 5425.36 crore in corresponding previous period). Thus the net profit after RI was up by 8% to Rs 3313.47 crore....

22 June 2020 Power Grids (PWGR) 4QFY20 results highlight steady performance in the Transmission segment. Adj. PAT increased 7% YoY even as Consultancy/ Telecom EBIT declined 7%/4% YoY. FY20 capitalization stood at INR182b given the delay in commissioning of Raigarh-Pugalur. INR230b worth awards are up for bidding under various schemes; however, we expect some delays. In this context, a declining order book does put a risk of slowdown in growth. However, valuations at 1.3x FY22E P/BV and ~8- 9% FY22E dividend yield remain attractive for a company with steady RoEs of ~17%. with a DCF-based TP of INR222/share. Adj. for prior period revenue, INR4.25b of one-off gains on tariff order and INR1.22b of one-time tax, S/A PAT grew 7% YoY to INR28.6b (5% higher than est.).

Despite impact of pandemic and economic situation, management further guided for capex of ~Rs105bn and capitalization of ~Rs200-250bn for FY21E. Power Grid Corporation of India (PGCIL) reported decent numbers amid the pandemic wherein revenue growth was driven by Transmission/ Consultancy segment (which was up 7%/3% YoY). Despite the current economic environment, Capex/Capitalization came in at Rs35.5/46.4bn in Q4. The...

Lower capex guidance implies higher FCF and thus potential for dividend hikes. We maintain our BUY rating on the stock with a target price of Rs. 223 based on 1.5x FY22E BVPS. Operational performance remains strong Standalone revenue from operations in Q3FY20 grew by 6.0% YoY to Rs. 8,992cr primarily contributed by transmission segment (more than 96% of total revenue) with revenues at Rs. 8,814cr in Q3FY20 (+6.6% YoY). Consultancy segment (around 2% of total revenue) reported revenues at Rs. 144cr (down 7.7% YoY) and revenue from...

The objective of Power Grid Corporation of India Ltd is to create a strong and vibrant national grid in the country to ensure the optimum utilization of generating resources, conservation of an eco-sensitive right of way and the flexibility to accommodate the uncertainty of generation plans. Presently, Power Grid is one of the few telecom players with a marked presence in remote areas and is providing highly...

Management has guided for capex of Rs105bn (Vs. Rs150bn in FY20E) and capitalisation of Rs150bn for FY21E. Power Grid Corporation of India (PGCIL) reported steady set of 3QFY20 earnings which were broadly in-line with our estimates. PAT for the quarter...

Power Grid Profit beats estimates on higher other income Standalone sales of Power Grid Corporation of India (PGCIL) were up by 6% to Rs 8991.98 crore for the quarter ended Dec 2019. But with operating profit margin contract by 180 bps to 87.6%, the growth at operating profit was just 4% to Rs 7876.24 crore largely facilitated by higher...

3 February 2020 Power Grids (PWGR) 3QFY20 results highlight the companys strong performance in the transmission segment, with adj. FY20 commissioning target though would be dependent on timely commissioning of the Raigarh-Pugalur (~INR90b) project. While declining order book and capitalization schedule does put risk of a slowdown in growth, valuations at 1.3x FY22E P/BV and ~7% dividend yield are attractive for a company with steady RoEs of ~17%. Adj. for prior period revenue and pay commission provisions, S/A PAT grew 13% YoY to INR26.5b (4% higher than our est.) on better performance of the transmission business. regulated equity growth of 9% YoY, indicating better transmission RoEs YoY for the quarter. segment displayed subdued 4% YoY growth while profitability for segment declined 11% YoY. Overall, capitalization for the quarter stood at ~INR52b while capex was at ~INR40b.

Power Grid signs a JV with NTPC for setting up National Electricity Distribution Company (NEDCL) to undertake distribution of electricity and related activities. Company paid dividend of Rs. 2.50 per share during the quarter. TBCB projects on track; Maharatna' status enhances Board power TCBC (Tariff Based Competitive Bidding) projects are running smoothly with success in 7 projects YTD out of 13 bids participated. The total value of these projects is Rs. 6,599cr, consisting of Rs. 3,269cr worth of inter-state projects (RE related works) and Rs. 3,330cr of intra-state projects (MP-1, UP-2). As of H1FY20, the current works in...

earnings which were broadly in-line with our estimates. PAT for the quarter higher at Rs42/36bn during the quarter. Management has maintained its capitalisation guidance of Rs220250bn, subject to commissioning the...

Capitalisation on track but new normal implies moderation Cash and Investments (FY19) (| Crore) Total capitalisation at the consolidated level was at | 5687 crore for H1FY20 while that for Q2FY20 was at | 4221 crore. As of October 2019, capitalisation was to the tune of | 8300 crore. Going ahead, the company has guided for capitalisation and capex of | 20000 crore and | 15000 crore at the consolidated level, respectively. The key risk emanates from guidance of capitalisation resting on execution of RaigarhPugalur HVDC project (| 9000...

12 November 2019 PWGR has noted that Indias current low per capita electricity consumption (1/3rd of the world average) and focus on renewable energy (RE) investment will necessitate growth in transmission works. INR478b worth transmission projects corresponding to ~70GW of RE capacities have been identified for awarding. 175GW in 2022) would necessitate incremental investments of INR2.8t within transmission. We note that PWGR had set up capitalization target of INR200-250b for FY20 and much of it is dependent on the commissioning of this project. PWGR expects capitalization of INR200-220b for FY21. PWGR is looking to monetize assets through the InvIT mode (the government has set a target to raise INR100b from InvITs in FY20) and has taken an in- principle approval from the board. Company plans to use the proceeds from this monetization primarily for investing in upcoming projects.

Power Grid Corporation has registered 8% growth in sales to Rs 8804.11 crore for the quarter ended June 2019. Higher sales together with 450 bps expansion in operating profit margin facilitated 14% increase in operating profit to Rs 7896.42 crore. The other income was up by 43% to Rs 424.26 crore and thus the PBIDT was up by 15% to Rs 8320.68 crore. After...

Total capitalisation at the consolidated level was at | 1466 crore while that for the TBCB projects was at | 49 crore. Going ahead, the company has guided for capitalisation and capex of | 20000-25000 crore and | 15000 crore at consolidated level, respectively. The key risk emanates from guidance of capitalisation rests on the execution of Raighar Puglur HVDC project (| 9000 crore or 45% of capitalisation target) in H2FY20. If this slips that will risk capitalisation for FY20. We believe this is significant moderation compared to capacity addition and capex done over FY12-18. The impact on the lower...