Analyst Meet / AGM - Analyst Meet
Expects to continue the capex of around Rs 25000 crore in FY 19; however capitalization can be lower than FY 18 levels
The company held its conference call on 30 May 18 and was addressed by Mr. I S Jha CMD
Key Highlights
A total of 17 substations and 9250 ckm of transmission lines were added in FY 18 with an availability rate of 99.8%.
Overall in 5 years ended FY 18, total transmission capacity addition in India stood at 116382 ckms. Of this power grid's addition stood at 48127 ckms or 41% share in total addition. However the distribution capacity has not been added to match the transmission. Last mile connectivity issues still remains in these 5 years and offlate has been aggravated. Expects lot of distribution and substation work to happen in FY 19 being an election year.
Completed total capex of Rs 25790 crore in FY 18 and completed capitalization of Rs 29000 crore worth of assets in FY 18. This is highest ever Capitalization to capex achieved by the company.
Pending long overdue projects got completed in FY 18.
After having completed 1 Tariff Based competitive bidding (TBCB) order, the company has received 2 new orders of around Rs 2237 crore in FY 18.
The company also has completed 1 section of 63rkm of Railway electrification transmission work in FY 18. More such orders are further expected in FY 19.
Gross fixed asset stood at Rs 177100 crore, up by 18% as compared to FY 17. However CWIP was down by around 15% to Rs 32978 crore due to higher capitalization.
In consultancy business, 25 new orders were received by the company with major clients including SEB's from J&K, Bihar, UP, MP, Manipur and from NHAI. NHAI is also evaluating options on electrification projects on roads that it owns.
The company also received 8 new international assignments including countries such as Nepal, Bhutan Fiji and other CIS countries.
The telecom network increased by 5700 km of new lines and 23 new cities got connected.
Expects to continue the capex of around Rs 25000 crore in FY 19; however capitalization can be lower than FY 18 levels. A total work in hands stands at Rs 110000 crore (including TBCB projects of Rs 16500 crore) which should complete in next 3 years timeframe. The company will try to even out the capex, but lot depends upon how overall things pick up at the distribution levels.
Renewable energy share in total power in India currently stands at 8% which is expected to reach to 24% in next 10 years, ie by FY 27. Renewable energy integration program of integrating 175 MW by 2022 and another 175 by 2027 would play a significant role in achieving the envisaged target.
FY 19 will see lot of activities on rural electrification. Saubhagya scheme to ensure household electrification by 31st Dec 18 is major growth driver for this vision.
Massive transmission corridors would be required in between Northern region and Southern region for a steady transmission and distribution of power in long run.
The company is exploring all opportunities in working with Railways for electrification. It is open for investments and JV model for the same.
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