POWERGRID

YASH BHUTHADA
B.com(Hons.)
SAP ID --> 74011919001
RID
DA

19001
Company

Power Grid Corporation of India Limited (POWERGRID) was incorporated on 23 Octobe

authorized share capital of Rs. 5,000 Crore (subsequently enhanced to Rs. 10,000 Cror
limited company, wholly owned by the Government of India.
Its original name was the 'National Power Transmission Corporation Limited, and it wa
operating and maintaining high-voltage transmission systems in the country. On 8 Nov
Corporation received its Certificate for Commencement of Business. Their name was s
of India Limited, which took effect on 23 October 1992.
POWERGRID[3] started functioning on a management basis with effect from August 199
assets from NTPC, NHPC, NEEPCO, NLC, NPC, THDC, SJVNL etc. in a phased manner and
93. In addition to this, it also took over the operation of existing Regional Load Despatc
Authority (CEA), in a phased manner from 1994 to 1996, which have been upgraded an
Despatch and Communication (ULDC) schemes. Consequently, National Load Despatch
coordination at the National level.
According to its mandate, the corporation, apart from providing a transmission system
responsible for the Establishment and Operation of Regional and National Power Grids
across the Regions with Reliability, Security, and Economy on sound commercial princip
recognized as a Mini-Ratna Category-I Public Sector Undertaking in October 1998. It is
Government of India in May 2008 and "Maharatna" status in October 2019. POWERGR
country, is playing a major role in the Indian Power Sector and is also providing Open A

POWERGRID[4] operates throughout India. Its transmission network consists of roughly

and HVDC substations, which provide total transformation capacity of 3,67,097 MVA. P
Examples of POWERGRID-owned stations include the Vizag back-to-back HVDC conver
converter station, the India Sri Lanka HVDC Interconnection, and the Talcher–Kolar HV
POWERGRID is listed on both the BSE and the NSE. As of 30 September 2010, there we
POWERGRID. Initially, POWERGRID managed transmission assets owned by NTPC, NHP
January 1993, the Power Transmission Systems Act transferred ownership of the three
of the three companies subsequently became POWERGRID employees.
 porated on 23 October 1989 under the Companies Act, 1956 with an
ced to Rs. 10,000 Crore in Financial Year (FY) 2007–08) as a public

tion Limited, and it was charged with planning, executing, owning,

the country. On 8 November 1990, the National Power Transmission
ess. Their name was subsequently changed to Power Grid Corporation
effect from August 1991 and subsequently, it took over transmission
a phased manner and it commenced commercial operation in 1992–
Regional Load Despatch Centers (RLDCs) from Central Electricity
ave been upgraded and modernized with State-of-the-art Unified Load
ational Load Despatch Centre (NLDC) was established in 2009 for overall

a transmission system for evacuation of central sector power, is also

National Power Grids to facilitate the transfer of power within and
nd commercial principles. Based on its performance POWERGRID was
in October 1998. It is conferred with the status of "Navratna" by the
ober 2019. POWERGRID, as the Central Transmission Utility of the
also providing Open Access to its inter-State transmission system.

ork consists of roughly 1,53,635 circuit kilometers and 243 EHVAC

ity of 3,67,097 MVA. POWERGRID's interregional capacity is 75,050 MW.
-to-back HVDC converter station, the Chandrapur back-to-back HVDC
the Talcher–Kolar HVDC system.
ember 2010, there were 792,096 equity shareholders holders in
owned by NTPC, NHPC Limited ("NHPC") and NEEPCO Limited. In
wnership of the three power companies to POWERGRID. All employees
oyees.
Profit And Loss Statement-
 (in Rs. Cr.)
Particulars FY 2016

Net Sales 20,734.79

% Growth
Other Income 478.96
Total Revenue 8,046.28
% Growth

EXPENDITURES
Cost of Materials Consumed 0.00
% of Net Sales 0%
Changes in inventory 0
% of Net Sales 0%
Employee Benefit Expenses 980.54
% of Net Sales 3%
Other expenses 2,824.35
EBITDA 4,241.39
EBITDA Margin % 12%
Growth %
Depreciation & Amortisation 463.98
EBIT 3,777.41
Financial Charges 530.64
PBT 3,246.77
Pre-tax Margin % 9%
Tax Expense (Net) 5.45
Effective Tax Rate % 0%
Adjusted PAT 3,241.32
Net Profit Margin % 9%
Growth in Adjusted PAT %
Shares In Issue -36.90
Adjusted EPS -4.52
Growth %
Dividend paid -722
Dividend per share 1.00
Tax on dividend 240.68
Dividend pay out ratio 7.47
Net profit transferred to Reserves Account -22%
FY 2017 FY 2018 FY 2019 FY 2020

25,710.07 29,752.46 33,891.17 35,242.13

24% 16% 14% 4%
866.63 1,013.86 1,498.95 2,132.43
8,199.04 10,134.29 11,574.65 14,042.85
2% 24% 14% 21%

0.00 0.00 0.00 0.00

0% 0% 0% 0%
0 0 0 0
0% 0% 0% 0%
1,377.13 1,605.89 1,783.57 1,959.47
4% 5% 7% 9%
2,773.02 2,832.10 3,053.43 2,824.35
4,048.89 5,696.30 6,737.65 9,259.03
12% 19% 26% 45%
-1% 60% 37% 70%
422.28 487.24 552.95 561.56
3,626.61 5,209.06 6,184.70 8,697.47
223.57 388.31 540.92 408.01
3,403.04 4,820.75 5,643.78 8,289.46
10% 16% 22% 40%
6.04 -25.39 -97.15 41.86
0% -1% -2% 1%
3,397.00 4,846.14 5,740.93 8,247.60
10% 16% 22% 40%
5% 43% 18% 44%
-12136.60 1935.16 949.36 331.73
-0.1 1.27 3.4 13.38
-98% -1370% 168% 294%
-240 -798 -480 -1,379
3.50 2.00 2.75 4.00
240.68 797.74 479.16 1,378.96
7.47 0.34 0.56 192.89
-3677% 157% 81% 30%
1
 BALANCE SHEET
Particulars FY2016 FY2017 FY2018
ASSETS
NON CURRENT ASSETS
Gross Asset 149,808.38 149,574.14 176,844.59
Accumulated Depreciation 34,650.48 14,066.15 23,234.21
Capital WIP 43,809.96 35,884.13 30,307.12
Net Fixed Asset 115,158 135,508 153,610
Investments & Deposits 807 1,330 1,608

CURRENT ASSETS

Inventories 823.68 906.95 1,038.45

Trade Debtors 2,737.97 3,221.10 3,638.96
Cash 2,453.72 3,340.59 2,170.43
Loans and Advances 12,638.77 14,488.65 20,532.17
Other Asset Item 0 0 0
Total current Assets 18,654 21,957 27,380
Total Assets 178,429 194,679 212,906
Quick Assets 177,605 193,773 211,867

Net Current Asset Excluding Cash 46,155 41,946 25,210

Capital Deployed 167,515 136,838 155,219

EQUITY AND LIABILTIES

Current Liabilities & Provisions
Trade Payables 1,772 2,073 2,566
Miscellaneous Items 4,748 4,703 4,979
Advance from Customers 28 35 40
Total 6,548 6,811 7,585

Equity & Non Current Liabilties

Borrowings 102,240 112,463 123,420

Share Capital 5,231.59 5,231.59 5,231.59
Reserve and Surplus 102,239.75 112,463.17 123,420.32
Total 209,711 230,158 252,072
Total Liabilities 217,319 238,592 259,657

Total Stock Holder's Equity 143,653 140,571 128,652

Capital Employed 170,821 194,679 212,906

DIFF 38,890 43,912 46,751
HEET (in crores)
FY2019 FY2020

197,426.75 214,707.62
33,566.74 44,871.16
33,578.08 30,399.63
163,860 169,836
2,757 3,764

1,226.28 1,400.56
4,628.74 4,867.90
4,332.04 5,394.50
36,091.32 39,886.95
0 0
46,278 51,550
246,473 255,550
245,247 254,149

18,617 16,200

166,617 173,600

2,155 2,335
6,000 4,837
279 436
8,434 7,608

135,340 138,421
5,231.59 5,231.59
135,339.51 138,421.11
275,911 282,074
282,722 288,622

1 2

117,695 107,471

246,473 255,550
36,249 33,072
Cash Flow Statement
PARTICULARS FY 2016 FY 2017
Net Profit Before Tax 7571.54 9457
Net Cash From Operating Activities 15008.08 21575.27
Net Cash (used in)/from -21576.5 -23835.97
Investing Activities
Net Cash (used in)/from Financing
(decrease)/increase Activities
In Cash and Cash 5620.82 3958.56
Equivalents -947.6 1697.86
Opening Cash & Cash Equivalents 2491.19 1543.59
Closing Cash & Cash Equivalents 1543.59 3241.45
FY 2018 FY 2019 FY 2020
13514.98 8453.09 14946.54
22710.12 23380.67 31040.48
-25701.45 -18836.96 -11042.25

1284.68 -2430.78 -18805.84

-1706.65 2112.93 1192.39
3241.45 1534.8 3647.73
1534.8 3647.73 4840.12
 Financial Ratios
PARTICULARS FY 2016 FY 2017
Profitability Ratios
Sales 7,719 7,684
Return on Assets (ROA) 1.9%
Return on Equity (ROE) 2.63% 2.58%
Return on Capital Employed (ROCE) 2%
Dupont Analysis-ROE Decomposition
PAT/PBT (Tax Efficiency) 1.00 1.00
PBT/EBIT (Interest Burden) 0.86 0.94
EBIT/Sales (OPM) 0.49 0.47
Sales/Total Assets (Asset Turnover) 0.04
TA/NW (Financial Leverage) 1.38
ROE 0% 2%

Liquidity Ratios
Current Ratio 2.85 3.22
Acid Test Ratio 28.45
Debt-Equity Ratio 0.96 0.96

Efficiency Ratios
Assets Turnover Ratio 25.34
Working Capital Turnover Ratio 1.57 1.97
F.A. Turnover Ratio 22.00 17.64
C.A. Turnover Ratio Err:509 25.34
Debtors Velocity 94 129

Margin Ratios (%)

EBITDA Margin 16% 25%
Pre-Tax Margin 2% 16%
Net Profit Margin 2% 16%

Growth Ratios YoY (%)

Net Sales 7,132.03 7,400.43
EBITDA 1,166.84 1,865.55
Adj.PAT 166.77 1,213.66
Adj.EPS (4.52) (0.10)

Working Ratios (Days)

Inventory 2132.00 2308.00
Debtors 1998.00 2715.00
Net Working Capital Excluding Cash 7383.00 9227.00
Other Ratios (%)
Other Income/PBT 14.75% 25.47%

Per Share (Rs.)

Adj.EPS (4.52) (0.10)
DPS -1087.87 -24.07
BVPS 90.94 87.57
Cash Per Share -5.21 -6.76

Valuation Parameters
P/EPS -181.42 -6881.50
P/CEPS -157.39 -101.80
P/BV 0.01 0.00
EV/EBITDA 47.79 41.90
EV/SALES 26.26 22.08
Market capitalisation 199922.1 164975.48
Enterprise Value (Cr.) 202,702.44 169,644.26
Market Price 820 688.15
FY 2018 FY 2019 FY 2020

8,982 10,303 12,532

2.4% 2.5% 4.9%
4.05% 5.25% 8.09%
2% 3% 5%

1.01 1.02 0.99

0.93 0.91 0.95
0.58 0.60 0.69
0.04 0.04 0.07
1.65 2.09 1.66
4% 5% 8%

3.61 5.49 6.78

27.93 29.08 23.34
0.96 0.96 0.95

23.70 23.92 14.24

2.20 3.67 3.51
17.10 13.15 9.19
23.70 23.92 14.24
214 178 180

38% 43% 46%

28% 32% 38%
28% 33% 37%

8,774.41 9,783.29 11,906.74

3,307.81 4,224.55 5,449.98
2,457.65 3,227.83 4,438.55
1.27 3.40 13.38

2136.00 2793.00 2634.00

5271.00 5031.00 6168.00
12649.00 13848.00 14569.00
 21.03% 26.56% 25.72%

1.27 3.40 13.38

1013.13 1629.14 18450.48
93.04 95.21 101.68
-4.88 5.18 5.44

389.84 140.84 26.33

-101.45 92.44 64.76
0.00 0.00 0.00
22.03 17.88 9.68
13.97 11.70 7.15
118562.4 114981.48 84,465.68
125,484.55 120,496.23 89,610.59
495.1 478.85 352.3
Home

12 months average share price Shares Outstanding (Millions)

ADANI TRANS 1,055.15 0.00
TATA POWER 104.45 0.00
NHPC 24.4 0.00
NTPC 105.45 0.00
INDUSTRY 1289.45 0.00
 Relative Va
Market Capitalisation (m) Debt (M) Enterprise Value (M)
971.25 ₹238.4 448.18
104.10 404.8 401.54
24.25 20 -9.96
102.90 ₹788.2 24.65
1202.50 424.80 864.41

Current year Expected year

P/E Expected
Expected EPS
0.09 Book value per
P/BV share
1.0804 101.7
 Relative Valuation
Earnings(Adj PAT) Book Value or Networth EBIDTA CASH P/BV
1,653.62 971.25 4,958.00 523.07 1.09
8309.01 104.1 3,541.50 107.36 1.00
1470 13.37 2,329.47 54.21 1.82
1,872.74 24.25 3,089.12 78.25 4.35
13305.37 1112.97 13918.09 762.89 8.26

Expected price
0.0

109.9
EV/EBIDTA
0.09
0.11
0.00
0.01
0.21
Interpretation
Management Perspective
In an increasingly constrained context with severe requirements of quality, safety and environment respect, a building-
integrated photovoltaic (BIPV) involves advanced local energy management rather than photovoltaic (PV) power permanent
grid injection. This paper focus on building-integrated microgrid (BIMG) design and implementation applied to BIPV system with
energy storage and smart grid communication. The goal is to propose power balancing strategy with smart grid interaction,
aiming at reducing grid peak consumption, avoiding undesirable grid power injection, making full use of local PV production.
The energy management is carried out considering grid time-of-use tariffs, grid access limits, storage capacity, load and PV
power shedding if necessary. Based on experimental platform, the results show that the system maintains stability and confirm
the relevance of the proposed local energy management giving perspectives on better integration of small PV plant in power
grid.

Lender's Perspective
The company has held a low debt-to-equity ratio and relied on debt capital carefully. The majority
of the capital needs are met by retained earnings and equity share capital. The company is in a good
position to easily collect new debts if necessary, and meeting financial obligations would not be a
burden if current fundamentals are maintained.

Investor's Perspective
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. It's no
surprise, then, that I like to invest in companies with EPS growth. Over the last three years, Power Grid
Corporation of India has grown EPS by 12% per year. That's a pretty good rate, if the company can sustain it.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax
(EBIT) margins are changing. While we note Power Grid Corporation of India's EBIT margins were flat over the
last year, revenue grew by a solid 5.5% to ₹385b. That's a real positive.
In the chart below, you can see how the company has grown earnings, and revenue, over time. Click on the chart
to see the exact numbers.
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