Q1 2025 Power Grid Corporation of India Ltd Earnings Call Transcript
Key Points
- Power Grid Corp Of India Ltd (BOM:532898) maintains a high transmission system availability of over 99.80%, which is benchmarked internationally and considered one of the best in the world.
- The company has a strong financial performance with a revenue income of INR11,280 crores and a profit after tax of INR3,724 crores for Q1 FY25.
- Power Grid Corp Of India Ltd (BOM:532898) has won several new projects, including six out of ten projects with a total tariff of INR7,045 crores, showcasing its competitive edge in the market.
- The company is actively involved in sustainability and CSR initiatives, including projects like Vishram Sadans and participation in the Namami Gange mission.
- Power Grid Corp Of India Ltd (BOM:532898) is expanding its business outlook with a focus on data centers, smart metering, and solar generation, aiming for significant growth in these areas.
- The company's CapEx for FY25 is projected at INR18,000 crores, which some analysts believe could be higher given the profitability and growth opportunities in the power sector.
- There are challenges in the supply of critical equipment like GIS, transformers, and reactors, which could impact project timelines and costs.
- Despite a high dividend payout ratio of 67%, some investors question the need for such high payouts in a growth industry, suggesting that funds could be better utilized for expansion.
- The standalone profit growth appears flat due to lower dividend distribution from TBCB subsidiaries and the impact of prior period items.
- The company faces significant inflation in equipment costs, particularly for transformers and reactors, which have seen a 70-80% increase since 2017-18.
Good afternoon, ladies and gentlemen. We welcome you all. Thank you for taking out your time from your busy schedule and being here. On behalf of Power Grid Corporation of India Limited, we welcome you to the analyst meet to discuss the company's performance and the way forward.
On the dais, we have with us Shri RK Tyagi ji. He is the Chairman and Managing Director; Shri G Ravisankar, he is the Director of Finance. Shri Chetan Bansilal Kankariya, he is the Independent Director; Dr. Yatindra Divedi, Director Personnel; Shri Ram Naresh Tiwari ji, he is the Independent Director; Shri Naveen Srivastava ji, he is the OSD Operations; Shri Bura Vamsi Rama mohan, OSD Projects. To begin the proceedings, I request my team to start the company film, the video, and please, if you can switch off the lights.
(Video Presentation)
I now invite Sri RK Tyagi ji to initiate the proceedings and to share the company's performance and the way forward.
Thank you, sir. Good
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