Power Grid Corporation of India Ltd. share price target

For the quarter ended Sep 18, net sales of Power Grid stood at Rs 8283.03 crore up by 14% YoY. Net revenue from Transmission business, which constitutes around 96% of total revenue, was up 15% to Rs 8153.61 crore and PBIT and the same was up by 14% to Rs 4844.59 crore.. Net...

Capitalisation for Q2FY19 was at | 4740 crore, below estimates. For H1FY19, the same was at | 8440 crore. We expect the same to be heavy for H2FY19. The company maintains a capitalisation target of | 30000 crore for FY19E. Going ahead, we expect the company to witness asset addition of | 29500 crore and | 30000 crore in FY19E and FY20E, respectively. H1FY19 capex at | 12270 crore; FY19E to be at | 25000 crore As of Q2FY19, the company has incurred a capex of | 5800 crore while the same was at | 12200 crore. PGCIL earns 15.5% RoE on its capitalised asset...

OPM was higher by 50 bps to 87.8% resulting OP being up by 14% to Rs 7136.46 crore. Other income was up by 44% to Rs 300.57 crore. Interest costs were up by 21% to Rs 2140.61 crore. Depreciation was up by 15% to Rs 2450.61 crore resulting PBT of Rs 2845.81 crore, up by 10% YoY. After paying total tax of Rs 605.27 crore, up by 14% YoY, PAT for June 18 quarter stood at...

In-line Revenue & Earnings Performance; Maintain BUY Reported PAT of Power Grid Corporation of India (PGCIL) rose by 9.2% YoY to Rs22.4bn (in-line with our estimate of Rs22.8bn). Its revenue grew by a healthy 13.2% YoY to Rs81.2bn (in-line as well) owing to strong capitalisation in previous 2-3 quarters. Looking ahead, we continue to expect PGCIL's fundamentals to remain strong on the back of huge capex pipeline and least exposure to operational risks i.e. fuel and SEBs' weak financials. We maintain our BUY recommendation on the stock with an unrevised Target Price of Rs256. Transmission Biz Aids Revenue Growth; Margin Declines by 111bps YoY...

Power Grid reported a mixed Q1FY19 wherein core transmission segment revenues posted double digit revenue growth. In contrast, the optical miss on revenues was mainly driven by disappointment in the telecom & consultancy segments. On the profitability front, higher other expenses led to a shortfall in EBITDA expectations Reported revenues came in at | 8127.1 crore vs. estimate of | 8366 crore. Transmission revenues for Q1FY18 grew 14% YoY to | 7907.9 crore vs. our estimate of | 7970 crore. On the other hand, telecom and...

Rs329mn), driven by 14.1% yoy/21.3% yoy growth in Transmission/Telecom businesses. EBITDA margin declined marginally to 85.2%. Adjusted PAT grew by 7.9% yoy to Rs22.1bn. PGCIL targets to capitalise assets worth Rs903bn over the next 3 years (including TBCB of Rs150bn). Of these, CWIP will account for Rs343.5bn. We expect annual capitalisation of ~Rs300bn over the next 3 years. We have marginally lowered our PAT estimates for FY19/FY20E by ~1% each and cut our TP to Rs237. The stock price has corrected significantly and now trades at an...

31 July 2018 Power Grids (PWGR) 1QFY19 reported PAT increased ~9% YoY to INR22.4b (est. of INR24.2b), as growth in Transmission was partly offset by a decline in the Consultancy business. Capitalization stood at INR37b v/s INR35b in 1QFY18, representing ~13% of our full-year capitalization estimate. Capex stood at INR52b, almost double YoY. While Transmission revenue grew ~14% YoY and segment EBIT also increased at similar ~14% YoY, growth in Transmission PAT was not commensurate, likely due to certain under-recoveries. Transmission revenue in 1QFY19 includes INR329m revenue for the prior period. Telecom revenue increased 21% YoY to INR1.9b, while EBIT rose 46% YoY to INR1.1b. Consultancy revenue declined 28% YoY to INR1.5b, while EBIT fell 47% YoY to INR0.8b.

Power Grid Corporation of India (PGCIL) continued to deliver a good performance in Q4FY18. Reported PAT rose by 4.6% YoY to Rs20bn vs. our estimate of Rs22bn due to higher CSR expenses of Rs830mn and provisioning worth Rs 660mn pursuant to the final tariff orders. Its revenue surged by 16.5% YoY to Rs78.0bn led by ~16% YoY growth in transmission segment (which now contributes 92.0% to PGCIL's revenue) to Rs74.6bn owing to strong capitalisation growth. While telecom businesses grew by 20.0% to Rs1.5bn in 4QFY18, consultancy income increased to Rs1.9bn compared to Rs1.4bn in 4QFY17. Looking ahead, PGCIL's fundamentals are expected to remain strong on the back of huge capex pipeline and least exposure to operational risks i.e....

Q4FY18 profit rises but misses result estimates For the quarter ended Mar 18, net sales of Power Grid stood at Rs 7811.32 crore up by 16% YoY. Net revenue from Transmission business, which constitutes around 95% of total revenue, was up 13% to Rs 7518.85 crore. Net revenue from consultancy service business was up by 29% to Rs 197.20 crore. Telecom income was up by 20% YoY to Rs 172.70 crore. OPM was higher by 60 bps to 85.6% resulting OP being up by 17% to Rs 6682.63 crore. Other income was down by 16% to Rs 287.61 crore. Interest costs were up by 29% to Rs 2005.51 crore. Depreciation was up by 17% to Rs 2406.5 crore resulting PBT of Rs 2558.23 crore, up by 6% YoY. After paying...

Power Grid reported Q4FY18 results that were below our estimates as lower-than-expected revenues and higher-than-expected other expenses marred profitability. Reported revenues came in at | 7811 crore vs. estimate of | 7897.5.4 crore. The transmission revenues for Q4FY18 grew by 17% YoY. On the other hand, telecom and consultancy revenues came in higher than our estimates at | 172.7 crore and | 197.2 crore, respectively Asset capitalisation totalled ~| 27928 crore, below our expectations...