Power Grid Corporation - March 2013 Results Preview - Motilal Oswal

- We expect Power Grid to report 4QFY13E PAT of INR12.4b (up 14% YoY) led by higher capitalization in the last quarter. In 4QFY13, we expect PWGR to capitalize INR65b, lower than INR78b in 4QFY12. Higher capitalization in 4QFY12 was driven by back-ended commissioning for 11th Plan projects.

- PWGR has planned a capex of INR1t in the 12th Plan. For FY13E, we estimate a capex of INR190b - entailing capex of INR63.6b in 4QFY13E (v/s INR91b in 4QFY12).

- Company had indicated issues on climatic situations which impact capitalization (wiring - being the last lag of commissioning), and thus commentary on the pace of execution holds key to future trend.

- We expect PWGR to report PAT of INR42.7b in FY13E (up 28.7% YoY) and INR52.5b in FY14E (up 22% YoY). Stock trades at reported P/E of 7.7x FY15E.

Source : Equity Bulls

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