Result Update Power Grid Corporation Company Reports

Result Update Power Grid Corporation Company Reports

Power Grid Corporation : Asset Commissioning to Pick Up in H2 ...

Reco : Buy    Cmp : 114    Target :  141

PGCILⳊQ2 adjusted PAT at Rs 10 bn was marginally higher than our estimate of Rs 9.3 bn due to higher other income at Rs 1.6 bn (vs. estimate of 0.9 bn). Asset commissioning for the quarter stood at Rs 27 bn vs. our estimate of Rs 40 bn. However, management maintained its guidance of ~Rs 200 bn asset commissioning in FY13 and FY14.

Key result highlights: 

Asset commissioning to pick up in H2: For FY13, PGCIL is targeting asset commissioning worth Rs 200 bn vs. Rs 141 bn in FY12. During H1FY13, Rs 68 bn worth of assets has been commissioned and management is confident of achieving its target through increased asset commissioning in H2. Conservatively, we have factored in asset commissioning estimate of ~Rs 160 bn in FY13 and FY14.