Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Power Grid reported Q3 numbers in line with estimates. Capital employed is up 15% sequentially
indicating ongoing capex. We expect project execution and asset capitalisation, both key to
earnings, to pick over next couple of years. We continue to like the stock as a defensive in the
transmission space. Maintain Buy.
Results in line with estimates
Power Grid reported 3Q11 revenues of Rs20.5bn (up 34.5% yoy) in line with our estimate of
Rs 20bn. Revenue from the core transmission sector came in at Rs20.1bn (up 28% yoy).
EBITDA for the quarter was reported at Rs17.3bn (up 38.6% yoy) 5% ahead with our
estimates of Rs16.5bn due to lower than estimated other expenses.
Adjusted PAT for the quarter was reported at Rs5.9bn (up 21.2% yoy) vs. our estimate of
Rs5.8bn.
There is a 15% qoq jump in capital employed in the transmission segment indicating ongoing
capex in the company
Asset capitalisation remains key
During FY10, the company incurred capex of Rs101bn; however, the projects commissioned
during the year stood at c.Rs36bn.
However at the end of the previous quarter, the company has been able to capitalise assets
worth c.Rs50bn.
We expect capitalisation of ~ Rs80bn in FY11 and ~Rs100bn in FY12 on back of capex of
Rs115bn in FY11 and Rs142bn in FY12.
Defensive play on transmission spend
The company remains a defensive play on the transmission spends in the country. We
continue to favour the stock as the regulated returns give it a steady, non-volatile growth
profile.
The stock trades at 2.3x FY11F on price to book. We maintain Buy with a TP of Rs118.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Power Grid reported Q3 numbers in line with estimates. Capital employed is up 15% sequentially
indicating ongoing capex. We expect project execution and asset capitalisation, both key to
earnings, to pick over next couple of years. We continue to like the stock as a defensive in the
transmission space. Maintain Buy.
Results in line with estimates
Power Grid reported 3Q11 revenues of Rs20.5bn (up 34.5% yoy) in line with our estimate of
Rs 20bn. Revenue from the core transmission sector came in at Rs20.1bn (up 28% yoy).
EBITDA for the quarter was reported at Rs17.3bn (up 38.6% yoy) 5% ahead with our
estimates of Rs16.5bn due to lower than estimated other expenses.
Adjusted PAT for the quarter was reported at Rs5.9bn (up 21.2% yoy) vs. our estimate of
Rs5.8bn.
There is a 15% qoq jump in capital employed in the transmission segment indicating ongoing
capex in the company
Asset capitalisation remains key
During FY10, the company incurred capex of Rs101bn; however, the projects commissioned
during the year stood at c.Rs36bn.
However at the end of the previous quarter, the company has been able to capitalise assets
worth c.Rs50bn.
We expect capitalisation of ~ Rs80bn in FY11 and ~Rs100bn in FY12 on back of capex of
Rs115bn in FY11 and Rs142bn in FY12.
Defensive play on transmission spend
The company remains a defensive play on the transmission spends in the country. We
continue to favour the stock as the regulated returns give it a steady, non-volatile growth
profile.
The stock trades at 2.3x FY11F on price to book. We maintain Buy with a TP of Rs118.
No comments:
Post a Comment