Demonetization had no impact on Q3 results: Jha, Powergrid

Sairaj Iyer

If results posted by Powergrid corporation are analysed, the country’s premiere power grid ‘central transmission utility (CTU), felt no impact due to demonetization that began on November 8, 2016. On the contrary, the ‘CTU’ has posted a 20% increase in net-profit for Q3 (Oct-Dec 2016) for Rs. 1,930 crore as against Rs. 1,606 crore (Q3 Oct-Dec 2015).

At a press conference in Mumbai, IS Jha, the Chairman and Managing Director, appraised the results, highlighting the corporation stock’s financials, performance, and meeting of growth targets. He agreed there could be concerns in the public that demonetization-linked receivables could have impacted the cash-flow for monthly payments. He explained, “I maintain that our customers are nice to us, and are offering timely payment. The outstanding stands at Rs. 3759 crore, which includes bills that are overdue beyond 53 days billing. But in real sense, if one calculates the 60 day period, then it works out to 11% or 792 crore.”

MEETING TARGETS

The enterprise has achieved 4,650 Ckm of its annual target of 4,750 Ckm within 9 months, last year. Currently it boasts of 1062 transmission lines and 214 sub-stations that achieve an availability of 99.76%, a performance that beats international standards. The creation of energy highways is based on envisaged load growth, and the organization has implemented 11 hi capacity corridors with a capacity of 4000 MW and 3 high capacity and 6 HVDC systems with a capacity of 6000 MW each, to serve transmission requirements. “We are not only trying to meet today’s targets, but targets for the coming 10 years,” he shared.

He added further that the enterprise has well-managed its financial numbers, “Our market capitalization has gone up from Rs. 55,000 crore in 2014 to Rs. 1,08,059 crore as on date. Its gross assets have also gone up to Rs. 1,65,757 crore from Rs 1,44,795 crore, of the previous year.

TELECOM & INTERNATIONAL BUSINESS

The CMD averred that of the 3 sources of income- the core business of transmission provided 95% of revenue, however he was bullish of consultancy and telecom businesses too- the other two sectors for an increase in revenue in 2017.

Powergrid’s international presence in 19 countries has helped it qualify for an international consultancy order in Mali. It is also expanding its consultancy portfolio by working with the railways for an 800 rKM project. “Whatever the income comes, much of it goes to the bottom-line. We should be successful in Mali and on the international circuit. We have a good network connectivity with SAARC countries, and I think that is a great advantage,” he shared.

OPERATIONAL EFFICIENCIES

The PSU has taken all efforts to ensure that it adopts next-gen and innovative mechanisms to improve upon its efficiency levels. It has already implemented nearly 14 STATCOMs, or “shock-absorbers” and is also working with drones to ensure zero-loss in transmission.

Speaking to the Dollar Business exclusively, RP Sasmal, the Director for Operations shared that drones are an efficient operational exercise for patrolling transmission lines. He added “Drones help us patrol 1000 transmission lines across 134,000 km. Manual checking 3 times a year is simply not possible. We currently have four of these procured at a price of Rs. 1.5 lakh each, but we have earmarked 18 more for our next procurement. Drones along with helicopter patrolling will continue.”

He remained clueless when asked if Chinese products would fit in the overall schema of procurement, considering that IEEMA (Indian Electrical and Electronics Manufacturers Association) had written a letter to Ajit Doval, appraising the risks of relying on cheap Chinese imports, but hinted that there are no sub-standard import-products at Powergrid. He shared, “It is a serious issue but we haven’t yet received any official communication about this. Our procurement strategy covers stringent parameters and guidelines that deters cheap import-products from even qualifying.”