In This Article:
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Power Grid Corp Of India Ltd (BOM:532898) maintained a high transmission system availability of 99.81%, aligning with world-class utilities.
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The company secured seven ISTS TBCB projects with a levelized tariff of INR2,077 crore, enhancing its project portfolio.
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Power Grid Corp Of India Ltd (BOM:532898) implemented innovative technologies like dynamic line weighting and vegetation management for transmission lines, marking a first in India.
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The company signed a USD200 million green loan agreement with Sumitomo Mitsui Banking Corporation, Japan, to fund renewable energy projects.
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Power Grid Corp Of India Ltd (BOM:532898) reported a strong financial performance with a profit after tax of INR11,017 crore on a standalone basis for the last nine months.
Negative Points
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The company faces challenges in land acquisition and equipment supply, particularly for high voltage transformers and GIS, which could delay project timelines.
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There was a reduction in interim dividend per share due to increased CapEx requirements, impacting shareholder returns.
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Power Grid Corp Of India Ltd (BOM:532898) experienced a loss contribution from its JV EESL, amounting to INR140 crore for the nine months.
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The company is unable to monetize assets via its InvIT due to new national monetization pipeline guidelines, affecting its asset monetization strategy.
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Revenue from operations showed a decline due to the structure of regulated tariff income, which decreases annually as interest on loans reduces.
Q & A Highlights
Q: Are we on track to meet the capitalization target of INR180 billion for FY25, given the steep increase implied for the fourth quarter? A: Yes, we are targeting around INR18,000 crore for the full year. The work in hand remains similar to previous estimates due to ongoing CapEx, which offsets new project additions.
Q: What is the impact of the FY25-29 CRC tariff regulations on O&M, and how has the PGCIL JV EESL performed in the nine months of FY25? A: The impact of CRC tariff regulations is around INR140 crore in Q3. For EESL, there was a loss contribution of INR140 crore for the nine months, which is included in our consolidated results.
Q: Can you provide details on the large contract won by Adani Transmission and the difference in bids? A: The Fatehpur to Bhadla III project was won by Adani Transmission for about INR3,500 crore. We had previously won it for INR3,700 crore but revised our bids due to land policy changes in Rajasthan, which made it unfeasible for us to go beyond certain limits.