Analyst Meet / AGM - Analyst Meet
Growth momentum of capex and capitalization will continue in FY'17
The company held its Press Conference on 17th Aug 2016 which was addressed by key management of the company
Key Highlights
As on 30th June'16, the company has 131600 ckm of Transmission lines, 269000 MVA of substation capacities and Availability rate of about 99.92%.
In June'16 quarter, the capitalization was lower compared to past 4 quarters, and stood at Rs 2500 crore. Around Rs 29700 crore worth of projects have been capitalized in trailing 4 quarters.
There was some delay in implementation of large HVDC projects. Projects like 2nd pole of Agra-NE line and Champa-Krukshetra which was expected to be operational from June'16 quarter, now will be capitalized and operational by end of H2 FY'17.
During June'16 quarter, total capex incurred stood at Rs 5500 crore.
Telecom business revenue was up by 25% YoY in June'16 quarter with a 500 bps improvement on margins. Management expects the high margin to continue going forward as more and more Telecom projects get completed.
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 major countries include Bangladesh, Nepal, Ethiopia, Nigeria, Afghanistan, Kenya, UAE etc.
Management expects that scope for ROE improvement remains going forward. Current ROE stands around 15%. Despite competition and competitive bidding, management remains firm on its target to improve ROE.
The company plans to raise around Rs 4000 crore from bond market in FY'17. Management stated that there are no plans to raise funds through equity in FY'17.
The company is continuously moving up from 765 KV transmission line to 1200 KV.
Continuous grid capacity addition in Southern, Northern and Western grid will further drive the transmission line orders going forward. Management expects more than 30000 MW of grid addition by 2020.
The company continues to expect to spend around Rs 22000 crore of capital expenditure in FY'17 as well. Growth momentum of capex and capitalization will continue to remain in FY'17
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