The independent financial analyst theScreener just slightly lowered the general evaluation of POWER GRID CORPORATION OF INDIA (IN), active in the Conventional Electricity industry. As regards its fundamental valuation, the title confirms its rating of 3 out of 4 stars while its market behaviour remains unchanged and can be qualified as defensive. However, a marginally less favourable environment forces theScreener to downgrade slightly the title, which now shows an overall rating of Slightly Pos...
POWER GRID: Steady growth in underlying Transmission numbers (PWGR IN, Mkt Cap USD16.5b, CMP INR176, TP INR205, 16% Upside, Buy) Steady growth coupled with higher payouts; maintain Buy PWGR's 1QFY22 result highlights the steady growth in its Transmission business, with underlying numbers increasing 12% YoY. Reported standalone PAT rose 3x YoY, led by gains on sale of assets to the InvIT. It has won INR90-100b of awards during the past 8-9 months, which is a positive sign, given a declin...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
POWERGRID Infrastructure Investment Trust (PGIT) aims to raise around US$1bn in its India IPO. PGIT is an investment trust setup to own transmission assets of its sponsor Power Grid Corporation of India Limited (PGCIL). PGCIL is a central public sector enterprise which has been listed since 2007. PGIT will initially own five assets with a total network of 11 power transmission lines of approximately 3,698.59 ckm and three substations having 6,630 Megavolt amperes (MVA) of aggregate transformat...
POWERGRID Infrastructure Investment Trust (PGIT) aims to raise around US$1bn in its India IPO. PGIT is an investment trust setup to own transmission assets of its sponsor Power Grid Corporation of India Limited (PGCIL). PGCIL is a central public sector enterprise which has been listed since 2007. PGIT will initially own five assets with a total network of 11 power transmission lines of approximately 3,698.59 ckm and three substations having 6,630 Megavolt amperes (MVA) of aggregate transform...
Power Grid Corp: In line on strong transmission segment growth (PWGR IN, Mkt Cap USD13.8b, CMP INR188, TP INR229, 22% Upside, Buy) Valuation not pricing in any growth benefits; Maintain Buy Power Grid’s (PWGR) 3QFY20 results highlight the company’s strong performance in the transmission segment, with adj. PAT increasing 13% YoY. FY20 commissioning target though would be dependent on timely commissioning of the Raigarh-Pugalur (~INR90b) project. While declining order book and capitalizat...
Q3FY20 result highlights In Q3FY20, Power Grid commissioned projects worth Rs52bn (vs Rs81.6bn in Q3FY19) while 9mFY20 capitalisation was Rs109bn (includes TBCB asset of Rs2.5bn). We expect total capitalisation of Rs220bn in Standalone Company in FY20. Note that PGCIL is expected to commission Raigarh Pugalur HVDC line worth Rs100bn in Feb 2020. Capital expenditure in 9mFY20/Q3FY20 was Rs105bn/Rs49bn (vs Rs182bn/Rs60bn). Full year capital expenditure target is Rs150bn. Net sales for the qua...
Q2FY20 result highlights PGCIL commissioned projects worth Rs42.1bn (- 11%yoy) in Q2FY20, with projects on cost plus basis at Rs40.7bn (-14% yoy) and Tariff Based Competitive Bid (TBCB) projects at Rs1.4bn. We expect total capitalisation of Rs200bn in Standalone Company and a minor contribution from tariff based competitive bid projects in FY20E (under subsidiaries). H1FY20 commissioning and capital expenditure was Rs57bn and Rs56bn respectively. Net sales grew by 4%yoy to Rs90.4bn in Q2FY20...
Power Grid: Growth in transmission to continue (PWGR IN, Mkt Cap USD14.0b, CMP INR192, TP INR244, 27% Upside, Buy) We attended Power Grid (PWGR)’s analyst meet. Below are the key takeaways: Transmission sector to grow 8-9% over the next 10 years PWGR has noted that India’s 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 correspondi...
Power Grid: In line; Telecom and consultancy aids growth (PWGR IN, Mkt Cap USD14.3b, CMP INR194, TP INR244, 26% Upside, Buy) 2QFY20 Adj. standalone (S/A) PAT was up 7% YoY at INR25.3b (in-line), led by higher growth in Consultancy/Telecom business. However, it was offset by lower-than-expected profitability of the Transmission segment. Capitalization stood at INR42.7b (v/s INR21.9b in 2QFY19). Capex stood at INR36b. Implied transmission segment PAT grew ~6% YoY, lower than regulated equity...
Q1FY20 result highlights PGCIL’s projects capitalized in Q1FY20 was Rs14.7bn (-60% yoy), standalone at Rs14.2bn (-35% yoy) and Rs0.5bn (vs Rs15bn) of TBCB projects. Note that total projects capitalised in FY19 was Rs273bn (-8% yoy) – Rs210bn in Standalone and Rs66bn in tariff based competitive bid projects). We expect total capitalisation of Rs200bn in Standalone Company and nothing in tariff based competitive bid projects in FY20E (under subsidiaries). PGCIL incurred capital expenditure of ...
POWER GRID: Weak numbers led by multiple factors; Valuations do not price in growth benefits; Maintain Buy (PWGR IN, Mkt Cap USD15.8b, CMP INR210, TP INR242, 15% Upside, Buy) 1QFY20 adj. standalone (S/A) PAT at INR23.1b (+3% YoY) came in 7% below our est. of INR24.9b due to non-recognition of project revenue, lower consultancy income and tax leakage on change in deferred tax recognition. S/A capitalization stood at INR14.2b (v/s INR37b in 1QFY19). Capex stood at INR29b. Implied transmiss...
Power Grid: One-offs offsets impact of receivable provisioning; Valuation attractive; Maintain Buy (PWGR IN, Mkt Cap USD14.3b, CMP INR190, TP INR233, 22% Upside, Buy) 4QFY19 standalone (S/A) reported PAT grew 52% YoY to INR30.5b, boosted by prior-period sales and other likely one-offs on annual tariff adjustments. For FY19, S/A reported PAT rose ~21% YoY to INR99.4b even as gross block (proxy for regulated equity) grew by ~12% YoY. The growth was aided by prior-period revenue of ~INR2.8b an...
Q3FY19 result highlights PGCIL’s projects capitalized in Q3FY19 were Rs82bn (+36% yoy and +72% qoq). 9mFY19 capitalisation came in at Rs166bn (decline of 15% yoy). However, the capitalisation in standalone entity was Rs127bn and capitalisation in TBCB projects, being implemented through SPV, was Rs39bn. We expect total capitalisation of Rs190bn in Standalone Company and Rs60bn in tariff based competitive bid projects in FY19E (under subsidiaries). PGCIL incurred capital expenditure of Rs60b...
Power Grid: In-line performance; receivables are increasing; Strong visibility of earnings growth, valuation attractive; Maintain Buy (PWGR IN, Mkt Cap USD13.9b, CMP INR187, TP INR231, 24% Upside, Buy) Power Grid’s (PWGR) PAT increased ~14% YoY to INR23.3b in 3QFY19, broadly in line with our estimate. PAT adjusted for the prior period and the impact of wage revision was up ~9% YoY to INR23.6b (+9.2% YoY for 9MFY19). Receivables have nearly doubled in nine months to INR70.6b, as beneficiarie...
Power Grid: Miss attributed to Consultancy and Telecom; Strong visibility of earnings growth, Valuation attractive; Maintain Buy (PWGR IN, Mkt Cap USD13.3b, CMP INR186, TP INR249, 34% Upside, Buy) Power Grid’s (PWGR) PAT increased ~8% YoY to INR23.1b (our estimate: INR23.9b) in 2QFY19, as growth in Transmission was partly offset by a decline in Consultancy and Telecom businesses. PAT adjusted for prior period and wage revision impact increased ~10% YoY. Capitalization stood at ~INR84b...
Q1FY19 result highlights PGCIL’s projects capitalized in Q1FY19 was Rs37bn (including FERV of Rs11.8bn) (+3% yoy and -56% qoq). We expect total capitalisation of Rs240bn in Standalone Company and Rs40bn in tariff based competitive bid projects in FY19E (under subsidiaries). Total projects capitalised in FY18 was Rs279bn (Rs273bn in Standalone and Rs6bn in tariff based competitive bid projects) PGCIL incurred capital expenditure of Rs64bn (+2% yoy and -16% qoq) in Q1FY19. We estimate a capita...
Power Grid: Miss led by consultancy biz and under-recoveries; Strong visibility of earnings growth, Valuation attractive; Maintain Buy (PWGR IN, Mkt Cap USD13.9b, CMP INR182, TP INR253, 39% Upside, Buy) Power Grid’s (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....
Q4FY18 result highlights PGCIL’s projects capitalized in Q4FY18 was Rs84.2bn (-35% yoy and +45% qoq). Total projects capitalised in FY18 was Rs279bn (-4% up yoy; Rs273bn in Standalone and Rs6bn in tariff based competitive bid projects) in line with the expectation. We expect total capitalisation of Rs240bn in Standalone Company and Rs40bn in tariff based competitive bid projects in FY19E (under subsidiaries). PGCIL incurred capital expenditure of Rs78.9bn (-6% yoy and +32% qoq) in Q4FY18. FY...
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