Power Grid Corporation Of India Limited · NSE:POWERGRID

Power Grid Corporation Of India — Q1 FY2017 Earnings Presentation

44 slides from Power Grid Corporation Of India's earnings presentation, Aug 17, 2016

  1. Slide 1: Fastest Growing Electric Utility in Asia - Q1 FY 2016-17 Press & Analysts' Meet

    Fastest Growing Electric Utility in Asia An S&P BSE SENSEX Company Q1 FY 2016-17 Press & Analysts’ Meet Mumbai August 17, 2016

  2. Slide 2: Disclaimer

    Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations:  This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any secur

  3. Slide 3: Transmission – A Paradigm Shift

    Transmission – A Paradigm Shift POWERGRID Today Performance (Q1FY17)  Financial  Operational  Consultancy Performance (Q1FY17)  Telecom Projects in FY17 Investment Programme & Outlook Investors’ Response to Company’s Growth Recent Accolades 3

  4. Slide 4: Paradigm Shift in Transmission

    PARADIGM SHIFT in Transmission m Building Evacuation Systems to Market Enabler Fro ONE ss | 4

  5. Slide 5: Hon'ble PM on Importance of Transmission

    Hon’ble PM on Independence Day referred  Importance of Transmission  Expressed satisfaction over laying of 50,000 km of transmission lines  One Nation – One Grid – One Price  Due to One Nation One Grid and availability of transmission, there is free flow of power from surplus to deficit zones 5

  6. Slide 6: Power Delivery Chain

    Power Delivery Chain Transmission Sub-Transmission Distribution DISCOM 1,2......n State-1 DISCOM 1,2......n State-2 State-n DISCOM 1,2......n Inter-State Intra-State (STU) DISCOMs  POWEGRID, Pvt.  Few Intra-State 6

  7. Slide 7: Need of Transmission

    Need of Transmission  Demand centers and sources of energy are polarised  Uneven disposition of primary energy resources – coal (ER/Central India) & hydro (NER/NR)  Demand at far-off locations in WR/SR/NR  Transportation of coal difficult & costly, especially Indian coal have 30-40% ash content

  8. Slide 8: All-India Growth in Transmission - XII Plan (4 years)

    All-India Growth in Transmission - XII Plan (4 years) As on Mar-16 765kV lines TL 341,551 ckm 5,250 ckm to 24,245 ckm (4.6x in 4 years) X-fmn Cap. 658,949 MVA I-R Cap. 59,050# MW 150% increase in I-R Power 60% Transfer increase in Capacity 7% lines at X-fmn (MW) 765kV Capacity 33% increase (MVA) in

  9. Slide 9: POWERGRID role in Transmission Growth - XII Plan

    POWERGRID role in Txn. Growth - XII Plan (4 years) Addition during XII Plan (4 yrs: Apr12-Mar16) TL: 43% X-fmn Cap.: 65% I-R Cap.: 81% 2,47,948 1,61,798 84,070 36,373 31,900 25,700 ckm MVA I-R Capacity All-India (incl. POWERGRID) POWERGRID Source: CEA Monthly Executive Summary Reports - for All-Indi

  10. Slide 10: Transmission Growth – Enabling Cost Optimization

    Trans. Growth – Enabling Cost Optimization FY12 FY16 Growth CAGR Generation (MU) 876,888 1,107,386 230,498 6.01% I-R Energy Transfer (MU) 58,999 117,000 58,001 18.67% I-R Energy Transfer as % 6.73% 10.57% of Generation STOA – Energy (MU) 66,987 98,000 31,013 9.98% STOA (Energy) as % of 7.64% 8.85% G

  11. Slide 11: Transmission - an Investment, not Cost

    Transmission- an Investment, not Cost Transmission Growth has led to: • Reduced power prices for buyers (Discoms, Distribution Open Access Customers) • Net gains for Buyers - even after buying power from distant sources and paying for transmission • Cheaper power sourced from far away places, econom

  12. Slide 12: Transmission Growth – Enabling Cost Optimization

    Trans. Growth – Enabling Cost Optimization XII Plan SR-NEW Grid commences connected 12 12

  13. Slide 13: Consistent Reduction in Congestion

    Consistent Reduction in Congestion Total Electricity that Electricity that could not be Electricity could not be cleared due to congestion as % Generated cleared due to of total electricity generated (BU) congestion (BU) FY14: 0.58% FY14 967 5.59 FY15: 0.30% FY15 1,048 3.14 FY16 1,107 2.16 FY16: 0.2

  14. Slide 14: Driver of Transmission: A key enabler for vibrant electricity market

    Driver of Transmission: A key enabler for vibrant electricity market  Continued momentum in Transmission Development  Rising need for flexibility in the grid  Optimal utilisation of uneven distribution of energy resources  About 20-21GW of excess capacity available – lot of potential to access o

  15. Slide 15: Congestion Management - Capacity Augmentation

    Congestion Management - Capacity Augmentation WR - NR • Present: 7,900MW • Envisaged by 2020: 20,000MW NEW Grid – SR • Present: 5,900 MW • Envisaged by 2020: 18,400 MW 15

  16. Slide 16: New Technology in Transmission

    New Technology in Transmission 1200kV Adoption ±800kV UHVAC of Higher Voltages 765kV HVDC Smart Grid STATCOM (WAMS-PMU) Reconductoring 16

  17. Slide 17: Use of New Technology in Transmission - Drones

    Use of New Technology in Transmission Use of Unmanned Aerial Patrolling using Aerial Vehicles Helicopters (Drones) 17

  18. Slide 18: Use of New Technology in Transmission - Hot Line Maintenance

    Use of New Technology in Transmission Emergency Hot Line Maintenance Restoration System (ERS) 18

  19. Slide 19: POWERGRID Today

    POWERGRID Today

  20. Slide 20: POWERGRID Today

    POWERGRID Today CENTRAL LISTED GOVT. PAYING Market A ‘NAVRATNA’ SHAREHOLDING TRANSMISSION COMPANY DIVIDEND SINCE Capitalization ENTERPRISE UTILITY since 2007 57.90% 1993-94 ₹ 92,887 crore1  >90% ISTS Transmission Network owned by POWERGRID  Trans. Lines: 1055 Nos. - 131,728 ckm 400kV & above: >90%

  21. Slide 21: Performance in Q1 FY17

    performance in Q1 FY1> (Apri6-Jun16)

  22. Slide 22: Performance - Financial (Q1FY17)

    Performance- Financial (Q1FY17) (₹ in crore) Year ended Quarter ended Description 31.03.2016 30.06.2015 30.06.2016 as per IGAAP As per Ind AS As per Ind AS Revenue - Transmission Charges 19,945 4,513 5,889 - Consultancy Income: Services 465 89 120 - Telecom 392 88 111 - Other Income 479 103 139 Tota

  23. Slide 23: Performance – Financial (Q1FY17)

    Performance – Financial (Q1FY17) (₹ in crore) As on 31.03.2016 As on 30.06.2015 As on 30.06.2016 As Per IGAAP As per Ind AS As per Ind AS Gross Fixed Assets 1,50,052 1,22,578 1,52,249 Capital Work-in-Progress 46,830 56,878 48,831 Debt 1,06,321 99,412 1,09,789 Net Worth 42,598 40,408 45,470 Earning P

  24. Slide 24: Performance - Financial (Billing & Realization)

    Performance - Financial (Billing & Realization) As on 30.06.2016 ~ ₹ 3,718 crore Total Outstanding: (53 days billing#) Billed but not outstanding ~ ₹ 3,199 crore (<60 days allowed as per CERC) (46 days billing#) Transmission Outstanding ~ ₹ 519 crore (beyond 60 days) (7 days billing#) # Avg. Monthly

  25. Slide 25: Performance – Project Execution (Q1FY17)

    Performance – Project Execution (Q1FY17) Till Jul’16 Capitalisation 2,462 ~ ₹ 6,750 cr. (₹ in crore) (Provisional) Capex (₹ in crore) 5,585 ~ ₹ 7,222 cr. X-formation Capacity (MVA) 5,315 10,815 Tr. Line (GW-ckm) 956 3,690 25 25

  26. Slide 26: Project Execution - Increasing Capitalization, consistently

    Project Execution- Increasing Capitalization, consistently 31,789 31,788 29,703 141% 139% 137% 108% 97% 93% 94% 86% 23,095 23,126 23,024 23,285 22,910 22,456 22,584 22,123 21,760 21,775 21,757 77% 21,418 21,429 18,978 17,832 Jul13-Jun14 Oct13-Sep14 Jan14-Dec14 Apr14-Mar15 Jul14-Jun15 Oct14-Sep15 Jan

  27. Slide 27: Projects in FY17

    Projects in FY17 Transmission Lines Sub-Stations Inter-Regional Capacity 15,000 GW-ckm 20 Nos. 12,300 MW Major Lines Sub-stations 1. Gaya-Varanasi, Varanasi-Kanpur-Jhatikara 1. NP Kunta Inter-Regional 2. Ranchi-Chandwa-Gaya 2. Pandiabil (GIS) 3. Pachkula-Patiala; Sikar-Jaipur 3. Saharanpur 4. Roorke

  28. Slide 28: Status of TBCB Projects (upto Jun'16)

    Status of TBCB Projects (upto Jun’16) SPV & Date of Incorporation Completion Current Status 1st element commissioned in POWERGRID Vizag Trans. Ltd. Aug-16 Dec-15. Construction under Progress POWERGRID Unchahar Trans. Ltd. Sep-16 Construction under Progress POWERGRID NM Trans. Ltd. Oct-16 Constructio

  29. Slide 29: Operations – Q1FY17

    Operations – Q1FY17 • Trans. Lines : 1046 Nos. - 130,197 ckm Assets as on • Sub-stations : 211 Nos. - 260,123 MVA Jun-16 (120 sub-stations remotely operated) Performance • Availability: 99.78% during Q1FY17 • Reliability: 0.215 Trippings/ line 29 29

  30. Slide 30: Grid Management – Q1FY17

    Grid Management1 – Q1FY17 (Apr16-Jun16) 28% increase w.r.t. I-R Energy Transfer 31.14 BU Q1FY16 Bhutan: Import ~1 BU Cross-Border Power Exchange 2.6 BU Nepal: Export: ~0.5 BU Bangladesh: Export ~1.1 BU Myanmar: Export (0.0006 BU) Source: NLDC Report Jun’16 Energy Txn. : 24.73 BU 8% increase w.r.t Q1

  31. Slide 31: Consultancy (Domestic) – Q1FY17

    Consultancy (Domestic) – Q1FY17 • Major Orders New Orders recd.: Smart Grid related assignments in 10 Ahmedabad (Sub Divn.: Naroda) & Gurgaon (Sub Divn.: DLF) Assignments in Hand: • Major Assignments 117 Nos. • NER PSIP; T&D System Strengthening in Sikkim- (~ ₹ 19,000 cr.- Bal. Arunachal; TS to Leh-

  32. Slide 32: Consultancy (International) – Q1FY17

    Consultancy (International) – Q1FY17 Footprints in 18 countries 13 nos. Ongoing Assignments (as on Jun-16) New Order recd. 1 no. - From Bhutan for Distribution Management System EoIs/ Techno-commercial proposals submitted 9 nos. - Myanmar, Bangladesh, Kenya, Uganda, Georgia, Liberia Recent highlight

  33. Slide 33: Telecom – Q1FY17

    Telecom – Q1FY17 43 New Clients Total Order Book added [(Pvt. (28), Govt(15)] > ₹ 2200 crore  Infrastructure:  Fiber Optic Network : ~ 36,500km  Points of Presence : 595  Backbone Availability : 100%  Major Projects:  National Knowledge Network (NKN): Project completed & Under Operation  Nati

  34. Slide 34: Outlook

    Outlook

  35. Slide 35: Investment Programme (Apr12-Mar17)

    Investment Programme (Apr12-Mar17) Planned Annual Capex Plan Capital [*Projects: Ongoing Projects; Tariff Based Bidding Projects; Projects assigned by Outlay* GoI; Green Energy Corridors; Intra-State Projects; Transnational Interconnections] FY12-13: FY13-14: FY14-15: FY15-16: FY16-17: ₹ 110,000 ₹20

  36. Slide 36: POWERGRID Outlook (as on Jul'16)

    POWERGRID Outlook (as on Jul’16) Ongoing Projects approx. ₹ 1,13,000 crore New Projects approx. ₹ 15,000 crore TBCB Projects approx. ₹ 16,000 crore (as per Empowered Committee Estimate) Total Works in Hand: ₹ 1,44,000 crore (approx.) 36

  37. Slide 37: Company's Growth

    Company's Growth

  38. Slide 38: POWERGRID Stock Price

    POWERGRID Stock Price FPO (Dec-13) Price Current Price# ₹ 176.25 - 183.05 per ₹ 85-90 per share share More than doubled since 2nd FPO # Price range of POWERGRID Stock on 16.08.2016 in BSE Source: www.moneycontrol.com 38

  39. Slide 39: For the past year

    …. For the past 1 year… POWERGRID: 31.00% SENSEX: 2.33% BSE PSU: -0.44% NIFTY: 3.86% POWERGRID NIFTY SENSEX BSE PSU One year Relative Performance of POWERGRID Stock as compared to SENSEX, BSE PSU and NIFTY Source: www.moneycontrol.com 39

  40. Slide 40: For the past 5 years

    …. For the past 5 years… POWERGRID: 71.64% SENSEX: 67.18% BSE PSU -9.49% NIFTY: 70.95% NIFTY SENSEX POWERGRID BSE PSU Five years Relative Performance of POWERGRID Stock as compared to SENSEX, BSE PSU and NIFTY Source: www.moneycontrol.com 40

  41. Slide 41: Recent Accolades

    Recent Accolades

  42. Slide 42: Recent Accolades

    Recent Accolades ‘Best PSU Pavilion’ Award to POWERGRID Pavilion at International Industrial Trade Fair, INNOPROM 2016, held at Russia in Jul’16 42

  43. Slide 43: Recent Accolades

    Recent Accolades For the 1st time, POWERGRID makes it to the prestigious list of ‘Great Place to Work’ 43

  44. Slide 44: Thank You

    Yiank Vou

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