State-run Power Grid Corporation has posted a strong June quarter with 33 per cent growth in standalone net profit to ₹1,801.77 crore. The total standalone income of the public-sector undertaking also rose 31 per cent to ₹6,119.86 crore in April-June quarter this fiscal.
BTVIWhat key factors led to the strong performance? What is the reason for the cost cut?
The basic reason for the reduction in cost is that we have gone for optimisation of the service stations and that has reduced the staff cost. And we are deploying state-of-the-art technology for maintenance. This is the reason the cost has come down.
But it can’t be judged from a quarterly basis. In this quarter, it could be less and may be in the next quarter it will be more. As far as the reduction in interest cost is concerned, that is basically for the capitalisation we did in the last quarter of FY16. The whole result of it is coming up this year. And whatever we are going to do in this quarter, that effectively will show up in the next quarter.
Till July, we have already commissioned more that ₹6,000 crore worth of projects, which will give a very positive result in the next quarter, too.
Did you your capitalisation come down this quarter because the previous quarter had a higher capitalisation?
It’s not like that. Commissioning is always a lumpy system. For example, by June 30, we had commissioned projects worth ₹2,000 crore and within 15 days it went up to ₹6,700 crore. That is why it is being on some track. We were not expecting so many projects on Q1. In Q2, we are expecting more projects and in Q3 it may be much more. It is not a linear process.
Can you give us an outlook on the capitalisation and capex for this fiscal year?
Capex will be at ₹22,000-23,000 crore this year. We are targeting capitalisation of ₹28,000-30,000 crore.
What’s your current approved order-book size?
In the first quarter, we have approved about ₹22,500 crore. So far this fiscal, we have already done more than ₹25,000 crore.