Power Grid Corporation of India Ltd

- The company has shareholder approval for debt up to ₹1.8 trillion but currently has only about ₹1.2 trillion debt. - Debt has decreased recently due to lower capex in previous years. - With capex expected to pick up (₹18,000 crore planned for FY25, increasing thereafter), debt-equity ratio is likely to increase again. - Dividend payout is high (~67%), but the remaining profit (~₹5,000 crore) is sufficient to fund capex of around ₹18,000-20,000 crore. - There is no explicit mention of immediate new equity fundraising. - The company is managing funding primarily through internal accruals and debt within approved limits. - Advanced procurement and pipeline projects may lead to future need for more funds, possibly increasing debt but no clear indication of equity fundraising as of now.

- FY25 CapEx target: ₹18,000 crore, increased from earlier ₹15,000 crore due to more projects won, including six projects with 18-21 months completion schedule. - FY26 & FY27 CapEx expected at ₹25,000+ crore and ₹30,000+ crore respectively, totaling ₹70,000 crore projects to commission over next 3 years. - Advanced procurement strategies in place for critical equipment (transformers, reactors, GIS) to mitigate supply challenges. - Bhadla and Leh-Ladakh HVDC projects: tenders out, awards expected by Jan-Feb next year; Bhadla ready for award anytime. - Data centers: Phase one of 1000 rack center at Manesar underway (cost ₹700+ crore), phase two ₹2,000 crore; exploring other metro cities. - Offshore wind evacuation project (~₹13,000 crore) to be the first of its kind. - Commitment to sustainability: net-zero by 2047, replacing harmful SF6 gas with greener alternatives. - Green hydrogen hubs developing in Odisha, Gujarat, Tamil Nadu, Andhra Pradesh with corresponding transmission needs.

- POWERGRID expects strong growth driven by commissioning of around ₹70,000 crore projects over the next 3 years with ₹18,000 crore targeted in FY25 and ₹25,000-30,000 crore in FY26 and FY27. - Transmission projects valued at over ₹1 lakh crore are in the pipeline, with 70-80% expected to be cleared this fiscal year. - The growth will be supported by increasing projects in both regulated and TBCB routes, including key HVDC projects like Leh-Kaithal and Fatehpur-Bhadla. - Expansion into new business areas such as data centers is anticipated, with a 1000-rack data center being developed and plans for further capacity in major metro cities. - Transmission business is expected to contribute about ₹1,90,500 crore, with other businesses like smart metering and solar adding around ₹17,000 crore to future revenues. - Growth drivers include India’s rapid industrialization, renewable capacity addition (500 GW by 2030), green hydrogen hubs, energy storage, and international grid interconnections.

- FY25 CapEx plan is around ₹18,000 crore, up from earlier ₹15,000 crore, indicating growth in project execution and commissioning. - Targeting project capitalization of about ₹25,000+ crore in FY26 and ₹30,000+ crore in FY27, supporting revenue and profit growth. - Commissioning of major HVDC projects like Leh-Kaithal (5 years) and Fatehpur-Bhadla (4.5 years) expected to drive future earnings. - Increasing share of projects through TBCB route will add to consolidated earnings over standalone, suggesting rising dividends and profits in the medium term. - Maintaining high transmission availability (~99.80%) with low failure rates supports operational efficiency and stable profitability. - Dividend payout remains high (~67%), but adequate internal accruals and debt capacity allow for sustained CapEx and earnings growth. - Caution on flat standalone bottom-line in Q1 FY25 due to timing of dividends and one-time impacts; consolidated view is more reflective of growth.

- Current order book stands at over ₹1.14 lakh crore. - Projects under bidding will further increase this amount. - Major projects include HVDC Leh and Kaithal (~₹20,000 crore) and Fatehpur Bhadla (~₹12,000-13,000 crore). - The balance to be completed in the next 24-30 months is around ₹70,000-80,000 crore. - Expected commissioning targets: - FY25 around ₹18,000 crore - FY26 anticipated over ₹25,000 crore - FY27 expected around ₹30,000 crore - More than 70-80% of the ₹1 lakh crore+ projects in the pipeline expected to clear in the current fiscal year. - Advanced procurement underway for critical equipment like transformers, reactors, and GIS due to supply constraints. - Equipment orders for ongoing projects like Leh and Kaithal tendered in July; awards expected by Jan-Feb next year. Fatehpur Bhadla award is imminent.