Power Grid's Q2 earnings came bang in line with estimates with a mild surprise on margins despite higher employee costs. In an interview to CNBC-TV18's Yash Jain, IS Jha, CMD, Power Grid spoke about the results and his outlook for the company.
Net Sales are expected to increase by 15 percent Y-o-Y (up 0.2 percent Q-o-Q) to Rs. 7193.1 crore, according to Edelweiss.
Analysts expect Power Grid to commission assets amounting to Rs 6,000 crore (excluding TBCB) in Q1.
Net Sales are expected to increase by 12 percent Q-o-Q (up 22.9 percent Y-o-Y) to Rs 7519 crore, according to ICICI. Power Grid Corp to report net profit at 2196.9 crore up 21.9% year-on-year.
Analysts expect capitalisation of Rs 12,000-14,000 crore in Q4, driven by commissioning of Champa-Kurukshetra HDVC line.
Power Grid Corp is expecting a capex target of Rs 25,000 crore for fiscal year 2017-18, after it posted a stable set of earnings for the third quarter of FY17.
Analysts expect steady quarter and say capitalisation worth Rs 31,300 crore in last four quarters may aid topline growth.
Net Sales are expected to increase by 6.3 percent Q-o-Q (up 23.4 percent Y-o-Y) to Rs 6615.9 crore, according to Motilal Oswal.
Power Grid has kept a check on its operational costs by introducing automation in various operations, says Jha. He says the margins are cyclical in nature and may not sustain at current levels in the next quarter.
The company continues to gain orders from Power Grid and several State electricity boards. Although the company is very selective in participating in State orders. Railways, Sharma feels can also be another growth driver for the company.
In an interview with CNBC-TV18, IS Jha, Chairman and MD, Power Grid Corp of India, talked about the company's first quarter earnings and the company's order book position ahead.
During the period, EBITDA is seen up 25 percent at Rs 5168 crore versus Rs 4137 crore while margins may stand at 87.9 percent versus 87.7 percent year-on-year.
Sales are expected to increase by 5.0 percent Q-o-Q (up 28.2 percent Y-o-Y) to Rs 6049.6 crore, according to ICICI Securities.
Speaking to CNBC-TV18, Manish Mohnot, MD of Kalpataru said that gross margins will stay at around 10.5 percent levels and revenue is expected to grow by 25 percent in FY17.
On the timeline set for commissioning the Kurukshetra project, IS Jha, CMD of Power Grid said, first phase will certainly be commissioned by July-August this year.
CLSA also has a buy rating on Power Grid with a target price of 185 implying a 23 percent upside. It expects a strong earnings per share (EPS) CAGR of 16 percent over FY16-18.
The company reported 51.8 percent rise in total income to Rs 248 crore and operational efficiency improved to Rs 28 crore. The EBITDA margins expanded to 11.1 percent.
Operating profit is seen rising 26 percent to Rs 5,111 crore and margin may expand 100 basis points to 87.3 percent against corresponding period of last fiscal.
Vimal Kejriwal, MD & CEO of KEC International says KEC's Brazil business was impacted due to the currency issues.
In an interview with CNBC-TV18, IS Jha, Chairman & MD, Power Grid, discussed the company's third quarter earnings.
Profit is seen rising 23 percent year-on-year to Rs 1,508 crore and revenue may increase 21 percent to Rs 5,265 crore in quarter gone by.
State-owned Power Grid Corporation of India Ltd (PGCIL) reported a 20.54 percent rise in its standalone net profit at Rs 1,448.04 crore for the quarter ended September 30 on higher income from operations.
Analysts expect capitalisation of Rs 11,000 crore during the quarter against Rs 4,700 crore in same quarter last fiscal led by commissioning of Agra-Assam project. They expect a capex of Rs 6,000 crore and gap in commissioning & capex to reduce as major lines are completed.
Rajeev Aggarwal, CFO, KEC International, says lower commodity prices and currency depreciation in Brazil hit revenues.
In an interview with CNBC-TV18, RK Nayak, Chairman & Managing Director (CMD) of Power Grid said the company will continue to report steady numbers in the coming quarters.