Good morning, ladies and gentlemen. Suprabhat. On behalf of Power Grid Corporation of India Limited, we welcome you to the analyst and institutional investors meet organized to discuss the company's business and outlook post the declaration of the unaudited financial results for the first quarter that ended June 30, 2025. I request Sri Satyaprakash Dash, Company Secretary, to please initiate the proceedings.
Thank you, Vakul ji. Good morning, ladies and gentlemen.
I am Satyaprakash Dash, Company Secretary, and it's my pleasure to welcome you.
You all on this analyst and institutional.
Investors meet of Power Grid Corporation of India Limited.
Today our Functional Directors and Senior
Management team are present here to discuss the company's business and share the performance outlook based upon the recently announced financial results. It's my pleasure to introduce our esteemed Functional Directors: Sri R. K. Tyagi, our Chairman and Managing Director; Sri G. Ravisankar, Director (Finance) and CFO; Dr. Yatindra Dwivedi, Director (Personnel); Sri Naveen Srivastava, Director (Operations); and Sri Vamsi Rama Mohan Burra, Director (Projects). Before starting the presentation, I would like to request the team to show the corporate presentation, please
corporate video. Yeah.
I would now like to invite our Chairman and Managing Director, Sri R. K. Tyagi, to deliver the opening remarks and presentation. Subsequent to that, there will be a Q and A session, so over to you.
Good morning everyone. My colleagues on the dais, all investors, my colleagues, senior colleagues sitting in front rows and in the audience, first of all I also welcome all the investors who have shown interest in POWERGRID's Investors Meet. We are driving energy transition as per the mission of Government of India. We have used mission for redevelopment in India, which requires huge transmission system, and POWERGRID is one of the largest transmission system developers in India. We are committed for achieving the goal of India 500 GM by 2030. 500 GW target cannot be achieved without adequate number of transmission lines and transmission system in India. With this comment, I will give the presentation for Q1 FY26.
This is
a disclaimer. My presentation today covers what POWERGRID is today, what asset base and other parameters, project execution in operation.
Management, how we are performing, how your
company is performing in operations. What is the financial strength of POWERGRID and other businesses like Telecom and Consultancy, how they are performing, and what is the future outlook of the company and i n sustainability, CSR, and awards, how we have performed.
As you know that we are
a flagship power transmission company with Government of India holding about 51%, foreign investors about 26%, and domestic about 18%.
Inter-regional transfer capacity,
we have about 101 GW out of total 120
GW inter-regional transfer capacity.
POWERGRID since 1993-1994 has been rated excellent since day one. We are operating about 84%, which is 101 GW .
That means we are integrating
power system
of India seamlessly and powered transmission or power transfer from one region to another region is seamless. Power generated in Himalayas can be transmitted in southern part of the country. Now RE power mainly
concentrated in
Rajasthan and Gujarat can be transmitted in north-eastern region or in southern region. Our domestic and international credit rating is very good. It is at par with the sovereign rating. We have five Functional Directors, two Government Nominee Directors, and three Independent Directors, including one woman Independent Director, Smt. Sajal Jha. We have a huge transmission asset base. About 1,80,000 circuit kilometers, 1,500 transmission lines, and 5,71,000 MVA transformation capacity, and 286 substations. Our system availability is 99.84%. We have large number of HVDC stations, 18 numbers, which is one of the highest in the world.
China may be there, but we are among the top.
As far as 765kV stations are there, it is largest in the world by any country, 69 numbers. We have 199 400kV and below substations. For grid reliability and stability, we have 20 STATCOM and SVC, 67 numbers of GIS and transformer. Reactor and transmission line towers are spread in width and breadth of the country. You go anywhere, POWERGRID transmission line
tower will be visible. How we are
executing various projects?
If you see here, Capex we have
in Q1 FY26 is INR 6,981 crore as compared to INR 4,615 crore last year. In commissioning, we have already done commissioning of INR 2,800 crore as against about INR 2,400 crore last year. We have a target of about INR 28,000 crore of Capex and commissioning of about INR 22,000 crore. Q2 we have INR 3,000 crore worth commissioning target, Q3 about INR 7,000 crore, and Q4 about INR 8,000 crore. That makes around INR 22,000 crore. These are some elements which have been commissioned. If you see transformers at Kurnool, Navsari, Khavda-II , Khavda-III , the Khavda-II .
Khavda-III, these are very critical stations, which.
Were required for evacuation of RE power from Khavda region. Both have been commissioned. Kurnool-III is also commissioned.
Which is also for repower.
New Navsari, Namsai in NER, and Gangtok in Sikkim Eastern Region substations, we have Khavda-II , Khavda-III , Ahmedabad, and Dausa substation. Dausa substation has been commissioned in about eight months from day one. The foundation stone was laid by me in December 2024 and it was commissioned in July 2025. It was around eight months, which is a record. Earlier, we had a record of Sikar that was commissioned in about nine months. That was also 765 kV by 400 kV substation, and this is also 765 kV by 400 kV station. This is also a record not only in India but outside India also. We have efficient project management.
We are committed for timely completion of the project.
These are a few examples I am showing.
Even our Namsai-Kathalguri transmission
line under TBCB, that line has been commissioned five months before target schedule, which was target schedule was October, whereas it has been commissioned in May 25.
We are committed for early e xecution of the projects or timely completion of the projects. How we have done in project execution? W e have introduced mechanization, especially use of cranes. Mobile tower cranes are being explored.
Our team is presently in China exploring the use of mobile tower cranes now.
These can be used for expediting tower erections and expediting transmission line project execution. We are using drones for transportation.
We are exploring use of drone for
transportation of cement bags and other components and for stringing. We are using drones for pilot stringing. In operations we have always maintained one of the best parameters in the world. Availability has been more than 99.75%. Last year it was 99.82% and so far we have 99.8% which is one
of the best availability or transmission system
availability in the world. Tripping per line we have maintained last year at 0.27. That means one line trips in almost four years, which is also one of the best parameters. We have been benchmarked in the first quadrant, which means low cost and high efficiency. Reliability is more and cost is less.
How are we achieving?
We have Artificial Intelligence based defect detection system. We have online condition monitoring. We have digitized various mechanisms. We have remote operation, and through use of technologies we are able to reduce outage. We are able to reduce failure rates. We are able to reduce cost of the operation and maintenance. In financials, we have already shared total income in Q1. It is INR 11,444 crore, EBITDA about INR 9,500 crore, profit after tax is INR 3,600 crore. Our net worth has increased to INR 96,000 crore and gross fixed assets about INR 2,92,000 crore. Our debt-equity is 58 to 42, 58% loan and 42% equity. These are financial parameters. Transmission charges, consultancy services, telecom, other income put together, it is INR 11,444 crore, EBITDA INR 9,527 crore, and profit after tax as shown earlier INR 3,631 crore. On standalone basis, income is INR 11,257 crore and EBITDA INR 9,623 crore.
Profit after tax is INR 3,653 crore. If we see other financial parameters as.
The gross fixed asset is INR 292,000 crore. Capital work in progress including advance is about INR 41,000 crore.
We have debt of INR 1,30,000 crore, net worth of INR 96,000 crore. Earnings per share INR 3.9 for quarter one. Book value per share is INR 103 crore per share. Debt-equity 58:42. Return on net worth is 3.76% for Q1. Other financial parameters. We have shown this income for previous periods. Interest on differential tariff, incentive, dividend, and other parameters. These details have been already shared in presentation. Our commercial performance has been good.
Billing is INR 8,434 crore,
Realization INR 8,671 crore, Outstanding in Q1 is INR 3,151 crore against INR 5,548 crore Q1 of last year. In other business, telecom and consultancy.
Income
from telecom has increased from INR 246 crore
to INR 289 crore and we have received INR 58 crore total. Customers added 16 numbers. Backbone availability has been 100%. As always, intra city network is there in 500 cities. First international ILD link of 10G capacity has been commissioned. The Powertel, our telecom company, has been felicitated for its role in project of national importance. Recently in consultancy, our income is INR 329 crore in Q1, which includes new business of smart meters, which we got revenue in 2025-2026 of about INR 153 crore. New orders we got 11 numbers
ongoing orders or projects are about 70.
We are trying to take project
in Kenya, and it is likely to
be mature in this month, and we are likely to sign agreement with Government of Kenya for execution of transmission project in Kenya at 400 kV and 220 kV level. It is almost in the final stages of commissioning, final stages of approval.
What are the growth catalysts or what are the opportunities for POWERGRID
In future? India is targeting to be a $10 Trillion economy, which will need industrialization, urbanization, energy transition, and e- mobility. Clean energy commitments will require more than 600 GW of non- fossil fuel and 71 GW of additional electricity demand on account of green hydrogen, then energy storage about 47 GW of battery energy storage and pump hydro about 36 GW
and global energy integration, One sun, One world,
One grid which will require interconnection with other countries like UAE, Saudi Arabia, Oman, Singapore, and other countries.
This will also POWERGRID will
also have opportunity to execute these projects. We have about INR 148,000 crore projects in hand, which includes TBCB of about INR 99,000 crore. RTM projects we have about INR 9,000 crores, new RTM about INR 37,000 and others about INR 2,600 crore. Put together, we have projects in hand about INR 148,000 crore.
Our Capex plan is INR 28,000 crore.
Which includes RTM of about INR 3,500 crore, TBCB about INR 19,000 crore, and other projects INR 5,300 crore. Next year we will have about FY27. We will have Capex plan of about INR 35,000 crore, and in one year after next year, that means FY28, will be about INR 45,000 crore. These are our pipelines for Capex in sustainability and CSR. You see from here that we have published the first sustainability report in 2009. We commissioned the world's first 400 kV shunt reactor with Natural Ester O il in 2021-2022. We adopted ESG water and waste management policies. Greenfield digital substations were commissioned at Chandigarh, and one brownfield project was commissioned, a digital substation in Malerkotla, in 2022-2023. The first integrated report with BRSR was published in 2022-2023. In 2023-2024, we have come out with Anti- Bribery Management System ISO 37001 certification by BIS.
We have focused on reduction of this greenhouse gas, that is SF6, for minimizing leakage.
We are maintaining the leakage rate at a very low rate, and we have a target.
Of achieving it better than the norms. Retro-filling of bus reactor in Aizawl, rainwater harvesting, and all-women substations. Four substations, we have all-women substations, which we call Pink Stations at Chandigarh, at Yelahanka, at Tughlakabad and at Misa. We also have plan to make
four numbers, four more substations as
Pink Stations or all-women substation by October 2025. S o, we will have eight all-women substations.
So, we are also committed for empowering
women power in 2024-2025. We also have commissioned first ICT with ester oil, natural vegetable oil and then 85MW
solar PV project at Nagda has been commissioned. A nd we were exploring alternatives
of SF6 gas , and we have recently ordered three number breakers with the green gas, which will be installed at Imphal substation. We also target of
installing rooftop solar
in our all POWERGRID buildings.
Our target with the project is
already taken up and which has been awarded. Our target is to complete this by December 2025. In 2025-2026 and beyond, we have a sustained efficacy in disclosures leaping towards our ESG goals. Recently, we have purchased one 400 kV by 220 kV natural ester oil supplied by Hitachi. It will be very soon it will be commissioned, which will be also one
of the largest transformer with natural ester oil or vegetable oil, which will be
commissioned in POWERGRID network.
We have already committed ourselves for 50% electricity consumption from RE.
We will achieve this by December 2025 and
Net Water Positive, Zero Waste to
Landfill, and Net Zero by 2047, and maintain Zero Fatality status. We also have strong ESG ratings by CRISIL, NSE S&P, and S&P Global.
Yeah.
We are committed for ESG requirements in CSR,
we are committed for social upliftment and our corporate social responsibility.
Recently at Navi Mumbai in Tata Memorial
Centre
we have installed one CT stimulator system to ACTREC . The second digital lab for women's skill training has been set up in Bangalore NSTI for women. Initiatives in health and fitness support have been done. For boosting energy health care in emergency health care in Karnataka, an ambulance was donated to the Indian Red Cross Society in Karnataka. Recently, we have got these international awards in CSR. This is International CSR Excellence Gold Award. T hen GAI SA 2025, AI Excellence in Energy Sector. T hen CII- CWL Gender Parity Business Award. We have got for Purposeful Intent in Services Sector, Gold Award at Economic Times for HR and Skill Awards for 2025 for best advance in artificial intelligence and machine learning and green tech 11th CSR India Award 2025 in category of gender equality and empowering women. Thank you very much for your patience hearing.
Thank you.
Thank you, Chairman sir.
That really gave a very good round of
overview of what's happening within POWERGRID Corporation . We now open the Q&A session. Kindly raise your hand, introduce yourself and the house, and then we can take t he questions one by one.
Thank you. Thank you sir for a very detailed and insightful presentation. My question was around future growth levers. You had mentioned four on the slide. I understand TBCB is the core focus with about INR 100,000 crore already that you had mentioned. Amongst the various levers that you outline such as battery energy storage systems, green hydrogen in other areas, if you could give us some more color. If you look at the next three, five, 10 years, which of these could be major growth drivers for you and what is the organization doing in terms of investment, both in terms of people capability as well as other technical skills to capitalize on these growth levers.
Thank you.
Thank you. Our core area is transmission and we are in telecom business for last many years. Now we are entering in solar. Already 85 MW is already commissioned at Nagda.
It is a commercial project.
Apart from this, we have solar panels, solar system in our stations. As regards to green hydrogen and BESS, we have already placed order for green hydrogen in our Neemrana substation where we will generate green hydrogen by solar panel or solar plant installed in the station itself.
Green hydrogen, either it will
be used in gas form for various applications, or it will also have the facility to generate electricity back to the grid. In daytime, from solar power, green
hydrogen will be generated, and in night time, electricity will be generated from green hydrogen to electricity.
storage systems BESS, we are trying to venture in BESS. There is a tender in Rajasthan where about 2,000 MG project is there, 4,000 MG hour. We are likely to participate in that project.
It depends how we
we are committed for BESS also
green hydrogen also.
In the next two, three years we.
Want to develop it as a big player in these areas.
Thank you very much for your detailed thoughts, sir. All the best to the entire team. Thank you.
Hi.
Thanks for taking my question.
Sir.
Good to see you plan for BESS as well. My question is on capitalization. That's one area we have lagged since the last one year. Last earnings call you highlighted right-of-way being a key factor. Change in guidelines for right-of-way which was impacting it. Could you elaborate on that? Is it getting better or does right-of-way continue to be a big challenge in meeting our aspiration of INR 22,000
crore capitalization this year?
Let us agree that ROW is a very big problem in India.
Making a transmission line is very, very challenging. We are taking required actions for ensuring that right-of-way ROW issues are resolved.
It is a challenge for all the transmission system developers.
We have made women cell especially for resolving right-of-way ROW apart from the normal men or this ROW cell consisting of men. Now we have dedicated women cell for ROW resolution only.
We have also taken up with Government of India for ensuring that adequate compensation
is paid to the farmers.
In June 2024, we were able to issue guidelines for farmers that from 15% to 30% land compensation for ROW and for tower base from 85% to 200% compensation is paid for the land between four legs of the tower. That was at circle rate.
But now in March 2025,
now Government of India has issued guideline for this. That circle rate should be replaced by market rate, because farmers are not agreeing for the circle rate. Market rate may be almost four times to six times that of the circle rate. Government of India has now issued guideline for paying compensation as per the market rate.
How to decide market rate?
That.
That.
The procedure is also mentioned in the
guideline that we had to select one
valuer, land valuer by POWERGRID, and one valuer will be by the farmers or the landowners. The two rates will be given by valuers. Average of these two rates will be paid to the farmers.
That way we are resolving the ROW iss ues.
We are very successful in resolving issues in Maharashtra, Gujarat, and to some extent in Rajasthan. In Delhi and Haryana, we are in the process of resolving ROW issues, but still there are challenges. There are still issues unresolved, especially in Delhi and Haryana. Positive action is on the ground and we are able to commission transmission line, but there have been some lines which are getting delayed because of ROW.
Thank you, sir.
Just a follow-up.
The direction is getting better. Am I fair to conclude that?
You compare last year and this year.
Yes, it is better.
There is a lot required to be done.
Got it.
Thank you, if
I may have one last question. There was this GIB issue earlier in Rajasthan which was impacting transmission lines. Any change in that?
Is that thing in the past no longer an issue?
It is no longer issue now. Now transmission system planner.
They are taking care in advance that transmission line which is being planned now.
That is not entering in GIB area.
Whatever transmission lines are being planned.
Which are being won by POWERGRID.
or by transmission system developer that is outside GIB area.
Whatever we are executing now or which we are going to execute in.
Future that will be out of GIB area.
Hi, sir. Sir, two questions.
Firstly, on the Leh project, any update on that? Is there any discussion on sort of changing the technology over here from HVDC to HVAC? Secondly, what we see is after many, many quarters there's a decline in your work in hand. While we appreciate that, it's also a sign of pickup in Capex, but are we seeing a slowdown in auctioning activity, and if yes, then by when is it expected to pick up again? What we understand is quite a lot of that INR 9 lakh crore is.
Still left to be ordered.
As you have seen that INR 1.48 trillion work projects are in hand.
About INR 41,000 crore projects are work in progress. If you add these two, it.
Will be almost INR 190,000 crore or in that range.
We are not seeing any decline in this area. As far as new projects, about INR 29,000 crore worth of projects are approved which are yet to be floated, bids are yet to come, and about INR 39,000 crore worth of projects are already bid out and are due for submission of the bids or due for award. Put together, we have about INR 67,000 crore worth of projects which are basically for winning, or we can win maybe 50% or 60% of those. Apart from this, there are about INR 75,000 crore worth of projects which have been recently
approved in NCT, which will be taken up for bidding in future.
If we see, maybe put together
that INR 1.4 trillion projects are up for grab.
Okay, as far as Leh and Ladakh project is there, yes, there has been delay because it is a very.
Challenging project, and only one party is now interested to execute this project.
Is also having some apprehension because it is a very challenging project working at height of 4,500 meters to 5,000 meters. Whether any HVDC technology is going to work there or not, that apprehension is there. Nevertheless, they have already submitted their bid, which is under evaluation. They have mentioned number of queries which.
Are being addressed, and queries are likely.
To be resolved in maybe another two months.
After that, we are considering to award.
The project to that particular HVDC OEM. In parallel, we are also considering, suppose we are not able to achieve this HVDC. In parallel, we are also exploring the possibility whether AC transmission network is feasible or not. Yes, we are trying.
By when will we sort of make that decision, or on what does it depend whether to move this from HVDC to AC?
Yeah, it will depend, like if it.
Is HVDC's most suitable technology for evacuating?
Power from Leh to Kaithal because there
is no generation, there is no grid connectivity. The transmission network is very, very weak. The power system is very, very weak. In that condition, HVDC VSC-based HVDC is the best solution. Suppose we are not able to mature that technology or we are not able to finalize the VSC-based HVDC system. The AC network will require a number of dynamic compensation synchronous condenser STATCOM, so a number of STATCOM and condensers.
Will be required, which will add to the cost.
In India we have not used synchronous condenser so that is also going to be a challenge. These are the differences between these two technologies.
Next please.
Hi sir, can you please mention the
capitalization figure for Q1
Sir, what you mentioned here was still July.
Yeah, we have mentioned commission of about INR 2,800 crore. Our capitalization is about INR 1,800 crore.
This was Q1
For Q1 [and because]
there are some projects, t hey get capitalized when all the
elements of that particular project are commissioned. Like for example, KPS-3, KPS-3 Khvda- III.
Which is a project substation. There is a 765 kV by 400 kV substation where three transformers are there, reactor is there, 400 kV reactor is there. There is a transmission line between
Khavda-II to Khavda-III and there
are two circuits in that. All elements are commissioned except one circuit of Khvda-II to Khvda-III
elements, which is likely to be commissioned very shortly.
Once this element is also commissioned.
We will capitalize that.
Similarly, at Khavda-II also, there are four transformers. 765kV substation, GIS 400kV, then transformers and reactors. Two transformers are already commissioned. Power flow is there through that evacuation from 400kV generation to 765kV Lakadia is already happening. Since we have not commissioned two numbers of transformers, we are not able to capitalize that. There are some elements which are commissioned and they are serving the grid, but we are not able to capitalize because the project consists of a number of elements.
Thank you, sir.
The capitalization target which you gave.
For INR 22,000, this for FY26, can same provide for 2027-2028.
Because now any project takes about two to three years for commission.
If we are saying out.
Of INR 38,000 crore work in progress, so INR 22,000 crore work projects are going to be commissioned this year. Moreover, we will have Capex of about INR 28,000 crore out of.
Which almost INR 6,700 crore are already.
The Capex is already done. About INR 21,000 crore Capex will be added in that. There will be INR 20,000-
25,000 crore worth capitalization in next financial year also maybe about INR 25,000 crore.
Okay. And sir, What we have been seeing in your transmission revenue, you know, if I compare it with the last four quarters, it has more or less been stagnant in spite of adding almost INR 9,000 crore on a capitalization plus. Any reason for the stagnancy?
If you
see that POWERGRID's business model in RTM, because almost so far our RTM projects are dominant and most of the revenue may be almost 90% of revenue
comes from RTM projects.
In RTM projects the business model or revenue model is as per CERC that initial 12 years, the depreciation will be 5.28%
after say 12 years, the depreciation is going to be say 1.8% something, 1.8% or so.
Every year some elements or some projects are completing 12 years,
so our depreciation, depreciation is reducing. That is part of the tariff. If depreciation is reducing, our revenue is reducing.
This is one reason. The second reason is our loan period could be 10 years, the period could be 12 years. After 12 years, the loan part is almost over, so interest on loan and that component also reduces. The interest on loan is pass through.
We get in terms of revenue, so that part is also reduced.
Like that, every year our
revenue from RTM is getting reduced
is getting compensated by revenue from the TBCB projects if we commission more and more projects.
Only our revenue will become more and more.
Otherwise, if we are not able to
commission more than INR 20,000 crore projects in.
TBCB, our revenue model, it will almost cost constant, and or sometimes it may reduce also.
Fair enough. Thank you for this.
Yes please.
Sumit Kishore from Axis Capital. My first question is why has consolidated profit for POWERGRID declined by about 2% year on year. Is there, you know, any one-off or any other item that you would like to call here?
That's my first question.
Okay.
As far as profit on standalone basis, it has increased by about 4%,
7%.
7%.
As regards on consolidated basis, it has come down. The main reason for this is our
expenditure in CSR is about INR 70 crore more as compared to last year in Q1.
Second element is our loss from ESL
our joint venture company is more
that has led to depreciation or dent in profit. These are major two factors.
How much was lost from ESL?
INR 70 crore.
Okay.
There were some prior period items.
Also, which were higher last year as compared to this year.
Actually, that's a one-time order that will be there. The main reason is, if you say only in consolidated, if you compare, because this CSR is in standalone also, standalone to consolidated. Mainly, the reason is the INR 70 crore of the JV's contribution to the loss.
You mentioned about INR 670 billion of projects which could get bid out. Is that the target for the remaining financial year? You think this could get bid out or.
Yeah.
39,000 crore are already up for grab.
We have already participated in HVDC from Khavda 3 to South Olpad, which is having NCT cost of about INR 12,000 crore.
Whereas actual project cost may be
around INR 18,000- 20,000 crores.
That is already there in the market. There are some major projects in UP like Roberts Ganj, Vindhyachal, and Prayagraj. Like that, a number of projects are there and more projects are likely to be
all INR 67,000 crore project I think, it will be finalized within this financial year.
This south old part will be a VSC HVDC project? Sir, could you outline what is the pipeline of HVDC projects, both for LCC and VSC separately which could get awarded in the next three years and could commence construction on ground?
Yeah, there are like Khavda KPS-3 South Alpart, it is already bid, is already submitted, and it will be anytime, ERA will be done. We have already approved Barmer to South Kalamb, which is LCC-based conventional HVDC, and it is already approved in
NCT and maybe another two- three months it will come for bidding. There is a HVDC from Bikaner-V
to Begunia. A gain, it is 6,000 MW
project and it is expected commissioning is about 2029-2030.
Apart from there, there will be India-Sri Lanka HVDC project and Paradeep to
Andaman also in pipeline.
There is Imphal to Myanmar.
Back- to- back HVDC project is. S o as of now, these are visible whereas,
there are a number of more projects, but visibility is for these projects.
The next two-three years. A nd inter- country HVDC projects would be VSC or LCC?
It will be VSC based only because
if it is a very long distance when we are talking about Saudi Arabia,
Oman or UAE. So, it is going
to be VSC only.
Just final thing,
what
what would be the rough project cost
you think that could be there for.
the South Kalamb project?
South Kalamb to Barmer?
Maybe somewhere about INR 30,000 crore.
Although they have mentioned INR 24,000crore NCT cost, actual project execution cost will ba
around INR 28,000- 30,000 crore.
Thank you so much.
Sumit, to be precise to your question, we have a standalone profit of INR 3,653 crore and we have a profit of INR 364 crore in subsidiaries. Again, in Q1 we took a dividend of INR 342 crore to POWERGRID , which gets eliminated. Actually, we are left with only some INR 20 crore growth in the consolidated, and because of the JV loss, it is coming down.
Got it. Thank you.
Sir, Girish from Morgan Stanley. Sir, the numbers that you disclose on work in hand, just a clarification, is that NCT cost or is it your project cost?
Mostly it is NCT cost except this, our Khavda and Nagpur , because NCT cost was only INR 24,000 crore, whereas the project cost is about almost INR 35,000 crore.
If you can give a guess etimate, because things are evolving on the cost side on the TBCB work in hand, what could be the completed project cost for the portfolio that you are sitting on right now?
Can you repeat?
the TBCB work in hand versus?
Work in hand we have said INR 99,000 crore almost.
Yeah, on that, what could be your expected project cost that you would actually incur?
We will target only that only, about
INR 99,000 crore unless until there is some force
majeure or change in law, like suppose
there is a government order for compensation of lannd,
more compensation is to be paid to
the farmers which has come after we won the project.
That will be covered under change of law.
If such force majeure or change in law is there, that is going to be an issue.
On capital good equipment suppliers, are you seeing more inflation right now versus
what you have bid the projects in
the last, let's say, 12 months? if you could quantify what could
be the inflation here?
Actually, the supply
if you see any project these days,
TBCB or RTM project, about 50% cost is supply cost, about 35%.
30- 35% is civil and erection cost. About 15- 20% is about ROW cost. Supply cost is increasing now because demand is more if you consider transformer, if you consider GIS, if you consider breaker, if you consider maybe insulator or even tower parts also.
So, the normal inflation could be 5- 6%, maybe 7%, 8%.
Every year we are seeing increase in transformer cost, maybe 15%, sometimes 10%.
It is varying from 10- 20%.
Transformer cost in last seven years.
Has gone more than two times with.
The cost, which was about INR 14 crore.
It is almost now INR 30 crore.
It is a case for almost all element. If you talk of breaker, you talked of GIS. Where GIS bay, suppose which was about INR 6 crore per bay.
Now cost is about INR 14- 15 crore per bay.
Last two questions, h ow much have you already ordered out, and how much is pending to be ordered from your works in hand?
That figure I am not having ready,
that value, but almost whatever we win
the project within three months, we
award all the project.
Okay.
That is our standard condition
at the time of e-RA, all costs are in our hand, and within one month or two months,
we award all the packages.
Okay.
Last question on commissioning, when you are referring to INR 22,000 crore and INR 25,000 crore, if you can help us with the split between RTM and TBCB, what could be the numbers there?
We don't have many RTM projects. I can say in percentage only, maybe about 85% TBCP and 15% of RTM. In 2025-2026, we have major projects of this Navsari, Padghe, and Kurnool, Maheshwaram,
that is under RTM.
Otherwise, next year it will be almost
90% TBC and maybe 10% RTM.
Only a couple of questions - [CROSSTALK]
- later on you can make [CROSSTALK]
Chirag here from Neo Asset Management.
In terms of, you know, if,
you look at the project size, you have INR 148,000 crore of opportunities. Are you seeing any significant bottlenecks in terms of the value chain for, let's say, transformers or the transformer components over the next three to five years?
Yes, it is a very big challenge. Whenever we are coming out with any bid, we are hardly getting two manufacturers or two suppliers for each vendor. Because everybody's hands are full and whatever cost they are asking, we have to give that cost. It is a very big challenge,
it is going to be a
very big risk for every one of us. What we are doing, we are procuring transformers and major components well in advance. When a project is also not in our hand, we are procuring the critical equipment well in advance. Like we are procuring 30 transformers in one package. Maybe one project may be having, say, six transformers or nine transformers. Once we have 30 transformers in
hand, so it will be sufficient for two to three projects.
We are taking care by advanced procurement action for meeting this challenge.
If you look at the EPC players, there are quite a few number of EPC players in transmission projects. Do you find any, I mean, any companies better than others or any execution challenges on that part, and what criteria you follow?
Challenges are almost same. Like being government company we have more
regulations, we have more audits, we have more these things.
At the same time, we also have a better financial cost. It is better, so we have plus minus both ways.
Do you find any particular company is better than others?
Can you repeat?
If you find any particular companies better than others when you are dealing
with them?
I cannot comment.
Yes sir, this is Atul here from JP Morgan.
Right way to ask you about your competition sir.
Yes, sir. Hello, sir.
Yeah, I have a question on the future market opportunity. Yes sir, this is Atul here from JP Morgan.
Beyond this INR 1.5 lakh crore
Rupees that you are in the free for, you know, INR 75,000 crore approved by NCT. The other part, you know how
much more could be awarded over next
three to four years as per the plan?
If you have seen this NEP plan 2032, which says about INR 9 lakh worth
transmission system by 2032. That means all are to be awarded by 2030.
Out of INR 9 lakh crore, about INR 3 lakh crore only have been now awarded. Almost INR 5.5 to 6 lakh crore projects are yet to be awarded in the next five years. You can say that maybe INR 1 lakh crore per year should be the target
at least.
Until it does not include - [CROSSTALK]
- And it includes intrastate also. - [CROSSTALK]
[That includes intrastate]
Yes.
And,
are we seeing some kind of
traction on intrastate right now
or it is?
Intrastate,
many states have come out with TBCB
transmission line, especially MP Maharashtra,
now Karnataka is also showing interest. They have fixed some free short level, maybe INR 100 crore. Like Karnataka has threshold level of INR 250 crore.
Maharashtra is having INR 500 crore, MP is having INR 250 crore.
That means above these threshold level,
all the projects will be under TBCB. We will have opportunity there in these states also.
Okay, thank you. Thanks.
Thank you. Thank you sir, for all the detailed answers. I have just two final small questions. One is on your financing strategy. You talked about the annual Capex of about INR 30,000 crore. If you look at over the next three years, it is about INR 1,05,000 crore, of which maybe about INR 55,000 crore may be debt. If you could also talk us on the two InvITs and equity raising plans, etc., to finance the INR 1,05,000 crore Capex over
the next three years.
Thank you.
There is no challenge in raising finance.
Like we normally for TBCB project, we have a requirement about 20%. We normally invest 20% as equity.
20% equity means if we divide it by three years.
Every year we will have, say
INR 7,000 to INR 8,000 crore equity.
Our profit will be about INR 60,000 crore.
We can very well manage from our resources, internal resources, and from market. Our balance sheet is very strong, so we are able to take one
of the best
solution, or we can have best loan from
the market at 6.9% or 6.95%.
Sure. Thank you. My final very bookkeeping question is to G. Ravisankar sir. While we are happy to look at on an annual basis, if you look at this latest quarter your operating expenses on a consolidated basis moved from INR 1,462 crore to INR 1,873 crore. About 28% growth. If you could give us some more color on that.
Actually, that includes the SCA accounting on account of the smart metering. L ike smart metering business which we are doing in Gujarat. There, the model is like even though it's on a consultancy, we will have to account as the income as well as the expenditure. Around INR 135 crore of an expenditure has been included in the other expenditure. In addition to that, INR 79 crore of an extra CSR compared to the Q1 and other R& M expenditures. That's why it is plus FERV always will be there, which is again coming as a net movement.
That is.
Thank you for all the detailed answers and all the best to the entire team.
Gentlemen, allow me to call this as a day for the Q and A. Of course, the management is available for you. I now invite Sri L. K. Khajk umar ji, he is the Executive Director, Corporate Planning, to give the vote of thanks.
Thank you, Mr. Vakul. Good afternoon, everyone. As we conclude today's investors' meet, I would like to extend my heartfelt thanks to all of you for joining us. At the outset, I would like to thank our investors and analysts. Your interest, questions, and the trust in POWERGRID means a lot for us. Your feedback helps us to improve and stay focused on creating long-term value. A big thanks to the senior leadership for presenting our performance and future outlook.
It's always inspiring to hear how we
are driving progress in a rapidly evolving energy landscape. Our special thanks to the Western Region I team. Your dedication and flawless on-ground coordination made today even possible. We truly appreciate the efforts of the WR-I team. Thanks also. We also thank M/s. Adfactor , M/s. Antique Limited, and their professional support. Big thanks to the team of ITC Maratha for the warm hospitality. As we move ahead, we remain committed to our goals and core values of transparency, reliability, and sustainable growth. We look forward to have more such interactions that help us to learn,
improve
and strengthen our bond with our stakeholders. Thank you once again and wishing you a good day ahead.
Thank you very much.