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Edited Transcript of POWERGRID.NSE earnings conference call or presentation 2-Aug-19 10:30am GMT

Q1 2020 Power Grid Corporation of India Ltd Earnings Call

New Delhi Aug 6, 2019 (Thomson StreetEvents) -- Edited Transcript of Power Grid Corporation of India Ltd earnings conference call or presentation Friday, August 2, 2019 at 10:30:00am GMT

TEXT version of Transcript

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Corporate Participants

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* R.K. Chauhan

Power Grid Corporation of India Limited - Former Executive Director of Engg - (S/s, TL, Civil), FQA

* Ravi Prakash Singh

Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman

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Conference Call Participants

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* Abhijeet Bora

Sharekhan Limited, Research Division - Research Analyst

* Abhishek Puri

Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power

* Apoorva Bahadur

Jefferies LLC, Research Division - Equity Associate

* Bhavin Vithlani

* Dhruv Muchhal

Motilal Oswal Securities Limited, Research Division - Research Analyst

* Inderjeet Singh Bhatia

Macquarie Research - Head of Research

* Koundinya Nimmagadda

JM Financial Institutional Securities Limited, Research Division - Analyst

* Mohit Kumar

IDFC Securities Limited, Research Division - Analyst

* Rahul Modi

ICICI Securities Limited, Research Division - Analyst

* Sumit Kishore

JP Morgan Chase & Co, Research Division - Research Analyst

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Presentation

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Operator [1]

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Good day, ladies and gentlemen, and welcome to the Q1 FY '20 Earnings Conference Call of Power Grid, hosted by ICICI Securities Limited. (Operator Instructions) Please note that this conference is being recorded.

I'd now hand the conference over to Mr. Rahul Modi from ICICI Securities Limited. Thank you, and over to you, Mr. Modi.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [2]

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Thank you, Margarette. On behalf of ICICI Securities, we welcome you all to the Power Grid 1Q FY '20 Results Conference Call. We have with us the senior management of the company, comprising of Shri Ravi P. Singh, Director of Personnel and additional charge CMD; Shri K. Sreekant, Director of Finance; Shrimati Seema Gupta, Director of Operations; and Shri R.K. Chauhan, Director of Projects; and Ms. Divya Tandon, Company Secretary; along with senior financial company officials. Over to you, sir. Thank you for the opportunity.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [3]

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Thank you, Rahul. Good afternoon, everyone. I'm Ravi P. Singh, Director of Personnel and also holding charge of Chairman. I welcome you all to Power Grid's Q1 FY '20 Earnings Call. I am accompanied by my team, Shri K. Sreekant, Director of Finance; Shrimati Seema Gupta, Director of Operations; Shri R.K. Chauhan, Director of Projects; Shri K.S.R. Murty, Executive Director of Finance; and other senior officials.

Today the company has announced the unaudited financial results for the first quarter of FY '20. The results for the quarter ended 30th June, 2019, have been disclosed on both the stock exchanges.

Let me begin with Power Grid performance highlights for Q1 FY '20. Project execution highlights. First, during the quarter, the company added 560 circuit kilometers of transmission lines, 1 substation, and 3,230 megawatt MVA transformer, transformation capacity. No assets were added by the subsidiaries during the quarter. Major elements commissioned during Q1 FY '20 is 400 kV double circuit Mundra UMPP [postponed] transmission line. 400 kV double circuit backlog, all the way to (inaudible) with the transmission lines. 400 kV Jaipur (inaudible) and 400 kV [quote at the] Jaipur substation, backlog substation. There have been some slippages like backlog becoming (inaudible) during the first quarter due to our order [book], which are in the sales for completion in the coming months.

CapEx during Q1 FY '20, capital expenditure by the company was INR 2,909 crores, which included INR 503 crores CapEx by the TBCB subsidiary. As already informed in the past, CapEx for FY '20 have been estimated at INR 15,000 crores on a consolidated basis.

Capitalization. During the quarter ended June 30, 2019, the company capitalized assets worth INR 1,466 crores, including INR 49 crores attributable to TBCB subsidiary. As informed in the past, the company will see this capitalization of INR 20,000 crores to INR 25,000 crores during the financial year '19, '20, on a consolidated basis. This year, however, subject to completion of [summer events] of (inaudible) projects. This project forms a substantial part of this year's anticipated capitalization, but is facing headwinds in terms of right-of-way issues in the state of Tamil Nadu.

Capital work-in-progress. As of 26/2/19, the total CWIP on a consolidated basis was INR 40,071 crores, including INR 4,699 crores CWIP attributable to TBCB as mentioned earlier.

Operational highlights. Average total transmission network including subsidiaries as of 30/6/2019, comprised of 1 lakh 38,858 circuit kilometers of transmission lines, 246 substations and 375,142 MVA of transformation capacity. With the use of state-of-the-art technologies, automation and digital infrastructure, the company continued to maintain very high levels of availability of its transmission systems. The average availability of Power Grid's transmission system has reliability up to Q1 FY '20 was 99.77% and 0.16 tripping per line, respectively. NPMC, set up for managing the (inaudible) and monitoring various parameters, the more clear real-time business is now managing 215 substations remotely as at the end of Q1 FY '20. For Q1 FY '20, the total income on a stand-alone basis totaled INR 9,228 crores, which was 9% higher than that assumed into FY '19. On a consolidated basis, the total income increased from INR 8,376, grown to INR 9,362 crores, registering a growth of 12%. The company's EBITDA for the quarter on a stand-alone basis was INR 8,135 crores, and on consolidated basis, INR 8,294 crores. In Q1, FY '20, Power Grid, on a stand-alone basis, posted a profit after tax of INR 2,438 crores versus INR 2,242 crores in Q1 FY '20 and '19, and we see a growth up to 8%. On a consolidated basis, profit after tax in Q1 FY '20 was INR 2,503 crores, as against INR 2,278 crores in Q1 FY '19. That is an increase of 10%. The share of subsidiaries and joint venture companies in the company's consolidated profit after taxes, INR 77 crores, and INR 39 crores, respectively. Secondly, the gross assets around 30/6/2019 stood at INR 298,643 crores on a consolidated basis and INR 199,172 crores on a stand-alone basis. The company's net worth as of 30th June, 2019, stood at INR 61,569 crores on a consolidated basis and INR 61,432 crores on a stand-alone basis.

Total long-term debt of the company as on June 30, 2019, was at INR 142,300 crores on a consolidated basis, and INR 142,010 crores on stand-alone basis. And the debt equity was 70-30.

Financial highlights of TBCB subsidiaries. The (inaudible) TBCB subsidiaries, namely PBTL, PUTL, PKATL, PWTL, PPTL, PMNTL and [PLTL] are fully operational. In addition, [PSITSL] is also partly operational. The (inaudible) that is 65 kV (inaudible) for completion via third quarter. In aggregate, (inaudible) subsidiaries were INR 380 crores for the quarter.

For Q1 FY '20 income. As far for our (inaudible) subsidiary on an aggregate basis was INR 392 crores and INR 77 crores, respectively. Credit receivables. As of June 30, 2019, the credit receivables on a consolidated basis was INR 5,793 crores and INR 5,564 crores on a stand-alone basis. As on June 30, 2019, the book value per share was INR 117.42 on a stand-alone basis, and INR 117.69 on a consolidated basis.

The company realized a total amount of INR 8,218 crores against a billing of INR 9,013 crores. Our standing more than 45 days was INR 3,373 crores. It works out to about 34 days of average monthly billing. The PPAs have been signed with 39 states. We entered into (inaudible).

Other business segments. Telecom. Telecom in coming Q1 FY '20 was INR 171 crores as against INR 173 crores at Q1 FY '19, showing a decrease of 1%. On the operational side, the cumulative backbone that we received for the quarter was around 99.98%. Telecom division added 40 new customers during the quarter. During the quarter, CERC allowed POWER GRID to offer its substation towers to telecom companies for installation of telecom equipment. We have been getting a lot of queries about the business potential from this venture. Let me clarify that it is still early days for this business, and its growth will depend more on the regulatory and feedback from those telecom operators who start using our towers. Meetings are being held with various mobile operators, infrastructure for (inaudible). We will keep you informed of any material developments in this regard if and when it happens.

Constant currency income in Q1 FY '20 was INR 125 crores, compared to the INR 151 crores in Q1 FY '19, showing a decrease of 17%. These new orders were received during Q1 FY '20. The clients include (inaudible). As of the end of Q1 FY '20, more than 80 projects are under implementation.

NERSIP. (inaudible) the end process of the improvement project. Comprehensive skills for (inaudible) transmission and the solution in our (inaudible). Implementation of 400 by 220 by 132 by 33 (inaudible). In new transmissions in (inaudible). The new electrification works for (inaudible) and (inaudible), along with TSS 9 and (inaudible) TSS. A total of 15 assignments were ongoing around June 30, 2019, in countries like Bhutan, Bangladesh, Fiji, Nepal, et cetera. The company included 1 new assignment during the quarter. 6 proposals were submitted during the quarter. The results of which are (inaudible).

Energy Management growth. Power Grid is looking at both project management consistency as well as investment for (inaudible) management projects. In this direction, the special (inaudible) in the state of [Roorkee] for implementing (inaudible). The discussions are at an advanced state with Roorkee for implementing governmental increase (inaudible) in order for the replacement of all the internal function within energy-efficient pumps. During the last quarter, the company signed a (inaudible) agreement in the (inaudible), which aims to focus on efficiency, enhancements in power solutions. Recently, Power Grid signed an MOU with IIT Roorkee, for undertaking an assignment to make its entire campus energy efficient. There is too also in (inaudible) self-efficiency enhancement projects at their campuses.

EV charging. During the quarter, the company established (inaudible) the new fast charging (inaudible), a charging station a services set up in association with Indian Oil Company, and is the first EV charging station in Karaval. With this, the company now has now set up 3 such charging stations, Nagpur, (inaudible), Hyderabad. Vendors being called, invited for 16 more chargers.

Marketing. Smart Grid. The company represented to a number of states for Smart Grid, and as part of it, tendors for advanced meters have been recently quoted of the state of [JNK]. Works-in-hand as of July '19, stood at about INR 63,000 crores as of July '19. I'll give you a breakup: Ongoing, INR 48,000 crores; new, INR 3,000; TBCB, INR 12,000.

Projects in pipeline. In January '19, we had shared with you the upcoming investment opportunity (inaudible) of about INR 43,000 crores, driven by (inaudible) first on achieving 175 gigawatt in every capacity by 2022. The investment of INR 43,000 crores is for integration of 66 (inaudible) we are running capacity in 2 phases. Of these, INR 11,200 crores was -- were allocated to either TBCB or (inaudible). Recently during the fourth meeting of the Empowered Committee meeting held in July 19, projects estimated at INR 5,300 crores, linked to about (inaudible), were for those 4 locations for TBCB or DICM. The municipal committee had a single meeting. All doubles seems like (inaudible) meeting, with the clear approval by CRC.

The views for Phase 2 for (inaudible) 38.5 gigawatt estimated to have the power at about INR 26,200 crore on our (inaudible) sustaining on the discussion of the approval. In the recently concluded mix mentioned above, power grid has the lowest relative payout of 7 projects, which includes 2 projects related to our (inaudible) and one in (inaudible) project, which is for (inaudible). The estimated cost of these 3 projects as for the Power Committee is INR 2,950 crores. The result for the trusted projects and being let to let out by the big process coordinator.

As on these projects, for a total estimated cost of INR 11,500 crores are under different stages of bidding. For a number of ISTS projects estimated at INR 2,700 crores, several numbers of retested projects estimated at INR [38,800] crores.

Updates on Power Grid [dealings]. During the quarter, Power Grid (inaudible) entered into an agreement for setting up a (inaudible) distribution company limited to a 50-50 JV to undertake distribution of electricity and related activities. The company's performance won (inaudible) and recognition in different levels. Major recent accolades include, while we're featured upon (inaudible) India's Best Companies to Work 2019 and ranked 99. For this 2019 improved to 65, up from 9 (inaudible) last year. Thank you.

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Operator [4]

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Thank you. Should we open it for Q&A session now, sir?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [5]

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Yes, please.

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Questions and Answers

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Operator [1]

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We will now begin the question-and-answer session. (Operator Instructions) The first question is from the line of Abhishek Puri from Axis Capital.

Sorry. He seems to have lost his line, so we'll move to the next question, which is from the line of Mohit Kumar from IDFC Securities.

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Mohit Kumar, IDFC Securities Limited, Research Division - Analyst [2]

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So several questions. The first is on receivables, sir. Did you see your position has deteriorated in the past 2 quarters? How we talking about 34 days of receivables, more than 45 days. When do you expect these things to normalize? And which are the state which are not being invested while breakup?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [3]

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First of all, we should understand that last year, the receivable there is permitted, even after CERC was 60. It has been brought down to 45 in the current regulation. So the goalpost has been changed from 62, 45. And in terms of the number of base receivables, what we have seen is, during the year, there is an increase. But in the month of March, there is much better production. And as on 30th June, there is no significant deterioration from what it was as of March. Our receivables are today about 57 days sale currently as of 30th June.

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Mohit Kumar, IDFC Securities Limited, Research Division - Analyst [4]

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Which is 51 days.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [5]

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It gelled the fidelity we are facing from the more question is, Telangana, Andhra Pradesh, and there are a couple of private developers. And those, I think, that is mainly due to some billing dispute. Now that this year, there should be related orders for the (inaudible). I think the billing will shift from those private developers to the state utilities, and that should get settled.

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Mohit Kumar, IDFC Securities Limited, Research Division - Analyst [6]

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Okay. Do we have the list of credit for our billing, of all the discount?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [7]

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Yes. We do have a letter for credits.

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Mohit Kumar, IDFC Securities Limited, Research Division - Analyst [8]

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Okay. And sir, my second question regarding the TBCB, can you share the revenue if that's bad? I think it's about 3 or 4.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [9]

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The EBITDA on the revenue is INR 392 crores. EBITDA, INR 380 crores. Back, INR 77 crores, all for the current quarter.

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Operator [10]

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The next question is from the line of Koundinya N. From JM Financial.

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Koundinya Nimmagadda, JM Financial Institutional Securities Limited, Research Division - Analyst [11]

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So just a couple of things. So on the -- for (inaudible) to renewable energy corridor, I missed the numbers between TBCB nominated and for (inaudible).

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [12]

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The total scheme, about INR 43,000 crores, okay? Of that, INR 11,200 crores were allocated, either under TBCB or regulatory tariff. The regulatory tariff, we got about INR 2,200 crores or INR 2,300 crores, and the rest have gone for bidding. And beyond that, 15.5 gigawatt, about INR 5,300 crores projects. These are -- the final decision of the forward committee is expected shortly. So we don't know how much will go to RPM and how much will be without. The rest is still at various stages of discussion on the [Board].

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Koundinya Nimmagadda, JM Financial Institutional Securities Limited, Research Division - Analyst [13]

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And secondly, if I just have effective tax rate between the current quarter and 1Q FY '19, there seems to be significant differences on noninterest tax that we usually incur. And what could be the possible business? And one thing you see is that the deferred tax expense has been higher than the previous year, so can you help me understand it better?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [14]

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In the last year, we were not recognizing deferred tax assets in the first 3 quarters. We did it only in the quarter 4. This year, right from quarter 1 we are recognizing deferred tax assets for the max credits, okay? If you take out this tax impact on a comparable basis, because we do the same treatment as we are doing in this year. In the previous year's first quarter, our profit would have been INR 2,845.1 crores, that is the segment profit versus INR 3,116 crores in the current quarter on a like-to-like basis.

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Operator [15]

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The next question is from the line of Bhavin Vithlani from SBI Mutual Fund.

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Bhavin Vithlani, [16]

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2 questions. One is, in this recent round of the TBCB biddings, you mentioned you have won 3 projects. Could you give us some color on the competitive intensity? And in your view, what will be the IRRs? Would it be the same 15%, 16% bracket that we have been earning currently?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [17]

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The company's still intensity, you know, that every project, there were at least 3, 4 bidder. Only in 1 project, we could see more than 4. Okay. But even in those projects, there has been significant competition, and the prices have been driven down in the reverse auction. As regards to the IRR, I think we will be in a position to get a better color only when the projects are executed. Today, we are trying to target as close to the regulated return as possible. But certainly, these are not having the current 15.5% post-tax regulated return. That's a shade lower than that.

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Bhavin Vithlani, [18]

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And these projects will be funded on an 80-20 basis? Or a 70-30 basis?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [19]

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I mean, with our balance sheet, does it matter what the TBCB company has what kind of debt equity?

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Bhavin Vithlani, [20]

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I know. The question is...

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [21]

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[Falling] at the corporate level.

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Bhavin Vithlani, [22]

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So the IRR of -- shade lower than 16%. It was like -- just to understand it, what leveraged that? Are we assuming the equity IRR of 15 -- sub 14%, 15%?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [23]

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We would like to do it at 80-20.

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Bhavin Vithlani, [24]

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Sure. And this last question, you mentioned that there are certain review of the green energy corridors. Is there a possibility that there could be more projects, which can be allocated on a nomination basis to Power Grid?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [25]

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That possibility is always there in the tariff policy also, so let it (inaudible).

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Operator [26]

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The next question is from the line of Sumit Kishore from JPMorgan.

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Sumit Kishore, JP Morgan Chase & Co, Research Division - Research Analyst [27]

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My first question is again on the TBCB projects. Power Grid has won 3 projects. Could you also tell us how many projects have been awarded post in March quarter? How many has Power Grid won? What is the total value of the projects awarded? And what other players, who have won these projects?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [28]

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7 projects have been bid out. We have won 3, okay? 1 of them is the [Dekara] Phase 3 [CCAR] system; and secondly is the Bhuj-II in [Guta]; and the third is (inaudible) in the associated system in [NP Entrusted]. The empowered company cost estimates for the projects which we won is about INR 2,950 crores. Competition is typically from (inaudible), Adani, the renew part, LNP, [KPPL] but typically, this [Ramadan] here is (inaudible) So anything else on this?

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Sumit Kishore, JP Morgan Chase & Co, Research Division - Research Analyst [29]

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So what is the total value of the projects, where on the other 4 projects that you're without, where Power Grid lost, what was the total value of those projects? And...

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [30]

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Okay. You're going to take it that 40% in terms of tariff, ultimately, without, we have won, okay? We look at it more from the tariff perspective. It is a known number. So 40%, you can say. We are maintaining that market share.

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Sumit Kishore, JP Morgan Chase & Co, Research Division - Research Analyst [31]

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And just to understand, for the projects that Power Grid lost. I mean, typically, what was the difference between Power Grid's bid versus private sector? I mean, how much lower did private sector bid as compared to Power Grid in winning those projects?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [32]

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You (inaudible), this is a reverse auction. So the difference will be 1 (inaudible). So it is just 0.24%. When would you like to quit, that is the main issue.

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Sumit Kishore, JP Morgan Chase & Co, Research Division - Research Analyst [33]

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Got it. Got it. And the last thing is, can you, could please tell us the cash position as of end of the June quarter?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [34]

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Cash position, we are having short-term borrowings of about INR 3,200 crores. So plus, there will be a minor cash balance. The rest of the cash is basically -- it belongs to various customers, who have given their deposit for the work being undertaken on their behalf.

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Operator [35]

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The next question is from the line of Dhruv Muchhal from Motilal Oswal Securities.

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [36]

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So if I adjust the time period income from the reported numbers, the prior period sales, falls about INR 117 crores in your notes. The back number, the Y-o-Y growth in part seems a bit low, about 2-, 3-odd-percent. So this, I'm trying to understand why it's such a low growth? Is there some one-offs in the numbers?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [37]

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(inaudible) it's a stand-alone.

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [38]

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Sorry?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [39]

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You have adjusted both quarters?

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [40]

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Yes, both quarters. So current quarter is about INR 117 and previous quarter was about INR 32 prior period income -- prior period sales. So the growth on -- for an adjusted basis will be about 3-odd percent. So you had these doubtful debts in the last quarter in 4Q if I remember. Were they continuing in the current quarter?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [41]

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No, no. Those were the one-off kind of provisions we made.

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [42]

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So because in the year also, in the annual report, you mentioned that on those projects, you're not recognizing the revenue of about INR 300-odd crores. So I mean all of the provision is not happening. You're not -- still not recognizing revenue on those projects? Or has that maybe started to...

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [43]

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We do not take that revenue. Once we have provided for that, that one -- that is only about INR 25-odd crores.

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [44]

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Okay. So that's not significant.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [45]

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That is about INR 25-odd crores in 1 project, where we have not considered revenue.

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [46]

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So sir, just trying to understand the low growth in the quarter. Is it something...

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [47]

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No. You just pass on this question. We'll come back to you.

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [48]

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Surely. And so second question, wasn't the change in accounting now that you're recording this deferred tax asset -- deferred tax liability as part of -- I mean before PBT. So it seems from the annual report that you also have to pay a tax on this. I mean you're recording a tax liability also on the deferred tax regulatory balance account.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [49]

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Yes, yes.

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [50]

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So is that causing a hit to your P&L because, say, for example, in the previous quarter, the deferred tax amount was about INR 800 crores. So on 20% of that INR 800 crores, is that hitting your P&L now? In the last previous quarter, it was not; but in the current quarter, it's starting hitting your P&L.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [51]

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But it is not very significant. See, we already recognize that as such.

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [52]

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Yes. Because earlier in the earlier policy, you were netting it off from tax. There was no tax liability on that. But now because it is coming as an income, so you're recognizing tax on that.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [53]

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Yes, that has to be done. That has a very -- impact, but that's marginal. [It's INR 20 crores] kind of impact.

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [54]

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Okay. And sir, probably the last thing is on the Pugalur line. So we had seen in the media report, is that the -- the court had ordered -- I mean ahead -- I mean given a go ahead to the project. Do you still see a delay? Or how is it?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [55]

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I'll request our Director of Projects to update you about this Pugalur line.

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R.K. Chauhan, Power Grid Corporation of India Limited - Former Executive Director of Engg - (S/s, TL, Civil), FQA [56]

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Yes. There's no as such -- that's taken from coal side, but we -- in [these projects,] we are facing some new local [residents], and we are following it. And now we are hopeful that we'll be able to achieve the deadline.

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [57]

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Okay, sir. And so if you can just highlight what is the Phase 1, which you're planning to commission in this year? What is the probably capitalization, which we're looking at?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [58]

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About INR 9,000 crores.

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [59]

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INR 9,000 crores. Sure, sir. This is helpful. Sir, if you can please give me the bridge for the PAT growth or the reasons for the low growth?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [60]

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Yes (inaudible)

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Operator [61]

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(Operator Instructions) The next question is from the line of Abhishek Puri from Axis Capital.

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Abhishek Puri, Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power [62]

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My line got dropped earlier. Sir, 2 things. First, on the transmission PBIT, just following up on the last question. On the PBIT also, when you reported the segment results, there's a y-o-y decline on that. So just trying to understand that, as against INR 5,487 crores, we have reported INR 5,230 crores. Is that due to the impact from the regulations? Or any other one-off which is there?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [63]

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This year, this number you are talking about?

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Abhishek Puri, Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power [64]

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This is from the segment results, PBIT numbers for transmission business.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [65]

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INR 5,675 crores versus INR 5,376 crores, is that...

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Abhishek Puri, Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power [66]

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I was referring to the transmission bit only.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [67]

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INR 5,487 crores versus INR 5,230 crores.

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Abhishek Puri, Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power [68]

--------------------------------------------------------------------------------

Yes, sir. That seems to have been substantially restated also because Q1 of last year was much lower, was INR 4,600 crores in my model.

--------------------------------------------------------------------------------

Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [69]

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This is because of the regulatory assets. And the regulatory asset is recognized as part of the segment result, but the corresponding tax is not coming here. That is the reason.

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Abhishek Puri, Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power [70]

--------------------------------------------------------------------------------

Okay. So that has been restated for Q1 of last year.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [71]

--------------------------------------------------------------------------------

Yes.

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Abhishek Puri, Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power [72]

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Understood.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [73]

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(inaudible) when we look at the segment profit before tax on a totality, if we remove this MAT credit as a deferred tax asset from INR 2,845 crores, the profit has gone to INR 3,116 crores, 1 up.

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Abhishek Puri, Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power [74]

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INR 2,845 crores to?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [75]

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INR 3,116 crores.

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Abhishek Puri, Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power [76]

--------------------------------------------------------------------------------

This is without the MAT credit you are saying.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [77]

--------------------------------------------------------------------------------

Yes.

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Abhishek Puri, Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power [78]

--------------------------------------------------------------------------------

Okay. Sir, on the TBCB part, just wanted to understand the 2 bids that you have won. I mean the good start one, Bhuj-II is the -- the annualized, levelized tariff is similar to that of the Rajasthan Part-C, whereas the project cost has doubled for that Rajasthan Part-C. So I mean, is the competitive intensity really that high that the bid is almost half the size? Or is it because of the large project size that you are bidding more competitively?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [79]

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Part of the composition of this asset also differs because where there is more line compared to substation, the O&M costs are lower. So that has one impact. But the overall cost, such are not exactly 1 is to 2.

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Abhishek Puri, Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power [80]

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[INR 645 crores] for Bhuj-II versus about INR 1,350 crores for the Part-C, Rajasthan Part-C.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [81]

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These are Empowered Committee costs. When you do actual bidding and the asset and your own cost, the difference comes down.

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Abhishek Puri, Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power [82]

--------------------------------------------------------------------------------

Okay. And this project has already been recognized in the work-in-hand that we have reported? Because we had INR 90 billion or INR 9,000 crores of TBCB earlier in last quarter? It is already INR 12,000 crores.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [83]

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Yes, yes.

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Abhishek Puri, Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power [84]

--------------------------------------------------------------------------------

Okay. Great. Lastly, if I may ask you, in terms of the short-term targets that you have given in terms of CapEx, INR 15,000 crores and INR 20,000 crores to INR 25,000 crores for capitalization, if you can bake that up into RTM and TBCB business, please.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [85]

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RTM and TBCB.

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Abhishek Puri, Axis Capital Limited, Research Division - Executive Director of Capital Goods, Infrastructure and Power [86]

--------------------------------------------------------------------------------

Yes.

--------------------------------------------------------------------------------

Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [87]

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Just a minute. Abhishek, we'll just get you this. We -- I'll just read these numbers out, okay? Take the next question. I'll read this out.

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Operator [88]

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The next question is from the line of [Sirwi Wam] from Macquarie.

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Inderjeet Singh Bhatia, Macquarie Research - Head of Research [89]

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This is Inderjeet. A couple of questions. You might have repeated these numbers. Can I get Q1 CapEx and commissioning number?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [90]

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Q1 CapEx was INR 2,900...

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Unidentified Company Representative, [91]

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9.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [92]

--------------------------------------------------------------------------------

Sorry?

--------------------------------------------------------------------------------

Unidentified Company Representative, [93]

--------------------------------------------------------------------------------

9.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [94]

--------------------------------------------------------------------------------

INR 2,909 crores and capitalization, INR 1,466 crores.

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Inderjeet Singh Bhatia, Macquarie Research - Head of Research [95]

--------------------------------------------------------------------------------

Okay. Okay. The second question is, again, can you give us the regulatory equity in end of June?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [96]

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We don't announce the regulatory equity.

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Inderjeet Singh Bhatia, Macquarie Research - Head of Research [97]

--------------------------------------------------------------------------------

Okay. And secondly, on the [first division] and media articles about these recent projects, where the capital cost seems to be coming down almost 40% to 50% below what Empowered Committee was saying, just trying to understand that why is there such a large difference coming. Is -- why are Empowered Committee cost numbers so high compared to what generally the industry [has reviewed current data]?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [98]

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No. Are you talking of project costs or the tariffs?

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Inderjeet Singh Bhatia, Macquarie Research - Head of Research [99]

--------------------------------------------------------------------------------

So whatever your assumptions in terms of project costs or tariffs, eventually [the trend] should tie in, right?

--------------------------------------------------------------------------------

Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [100]

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No, no, see, I don't know about project cost. We have seen media reports which say that the tariffs under TBCB are 38%, 40% lower than the RTM. [Compare that on the] tariffs. Now one, it is a very misleading comparison because they are comparing the levelized tariff of TBCB with the first year tariff of regulatory mechanism. You are level in the regulatory tariff, the tariffs fall for the first 12 years; and therefore, comparing first year tariff with the levelized tariff is not the right way of comparison.

So we're not able to -- and whatever analysis we have done, in some of the TBCB projects, the tariffs are higher than the regulatory mechanism -- significantly higher. And in some, they are lower. But there is no such consistent pattern, and to say that all projects are 30%, 40% lower is also not a factual statement.

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Inderjeet Singh Bhatia, Macquarie Research - Head of Research [101]

--------------------------------------------------------------------------------

Although on the CapEx front, how different are the -- in your experience, eventually the project cost turns out to be how different from the Empowered Committee cost?

--------------------------------------------------------------------------------

Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [102]

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They're normalized. They are somewhat comparable, but in the past, there used to be significant differences. But again, project to project, depending on the degree of optimization, which can be achieved, it varies.

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Inderjeet Singh Bhatia, Macquarie Research - Head of Research [103]

--------------------------------------------------------------------------------

Okay. One final question. Is there any progress on some of the initiatives you're talking about in the past, like railways or joint venture or with states or taking some part of the state discounts? Is there any movement on that front?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [104]

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Railways, beyond the first 4 projects, we have not got any more projects under PMC. They are not keen to get our investment into the projects, so that is where it is.

As far as the -- the state JVs are concerned, Bihar is going on well. We are implementing the Stage 2 -- Phase 2. That is about INR 1,700 crore project. The first phase of INR 1,700 crore is close to completion. Decisions are also on with Assam and UP for this JV. On the distribution side, we have now a joint venture with NTPC, but it is very, very preliminary stage it is currently.

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Operator [105]

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The next question is from the line of Rahul Modi from ICICI Securities.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [106]

--------------------------------------------------------------------------------

Sir, just a couple of questions. So firstly, we've seen the CapEx dropping in the quarter. So just wanted to check if this impacts our progress on the Pugalur line? And how much of that, yes, as a percentage, we've done CapEx on that line?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [107]

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The CapEx is, this year, INR 15,000 crores, and we have so far -- are close to about INR 4,000 crores in July. So that is about 25%, 27% of the target.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [108]

--------------------------------------------------------------------------------

Okay. So sir, means this will be progressively commissioned as and when the lines get commissioned.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [109]

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I'm not talking of only the Pugalur project. I'm talking of the total usage that CapEx is calling, and same base current year, total [outlays], INR 15,000 crores, of which we have done INR 4,000 crores. And we expect to pick up as the year progresses. That is one. Pugalur project, we are targeting for the third quarter, yes, end of this calendar year. Okay? So -- and at that time, the capitalization should be about INR 9,000 crores.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [110]

--------------------------------------------------------------------------------

Right. And sir, the Champa-Kurukshetra line, there was a Pole 2 pending if I'm not wrong.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [111]

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Pole 3.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [112]

--------------------------------------------------------------------------------

Pole 3. Yes. So when is it expected and size?

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R.K. Chauhan, Power Grid Corporation of India Limited - Former Executive Director of Engg - (S/s, TL, Civil), FQA [113]

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Could be somewhere overall number we are targeting.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [114]

--------------------------------------------------------------------------------

Okay. And what would be the size, sir?

--------------------------------------------------------------------------------

Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [115]

--------------------------------------------------------------------------------

It is INR 1,500-odd crores.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [116]

--------------------------------------------------------------------------------

Sure. And sir, the bids...

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [117]

--------------------------------------------------------------------------------

No, no, Pole 3 is INR 2,200 crores.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [118]

--------------------------------------------------------------------------------

Okay. Perfect. And sir, the opportunity size, if you could elaborate on the intrastate side with how much will this coming up, if you can throw some light on that.

--------------------------------------------------------------------------------

Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [119]

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This today in the market are about INR 8,800 crores. [7 bids] are there in the intrastate segment.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [120]

--------------------------------------------------------------------------------

Okay. And it is expected to open in the next couple of months?

--------------------------------------------------------------------------------

Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [121]

--------------------------------------------------------------------------------

Yes. Right now, 2 projects in the UP are RFQ stage. So progressively, we are seeing some movement in UP, MP, Jharkhand. Maharashtra also, there is one project in Vikhroli area.

--------------------------------------------------------------------------------

Rahul Modi, ICICI Securities Limited, Research Division - Analyst [122]

--------------------------------------------------------------------------------

Right, sir. And just lastly, sir, if you could before -- if you can just highlight whenever possible the question Dhruv had asked on the adjustments. That's all from my side.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [123]

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Okay. As regards this CapEx level question, out of INR 15,000 crores, about INR 3,400 crores is the TBCB CapEx.

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Operator [124]

--------------------------------------------------------------------------------

The next question is from the line of Dhruv Muchhal from Motilal Oswal Securities.

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [125]

--------------------------------------------------------------------------------

Sir, the MAT credit that you're mentioning, just to understand, how is it benefiting or impacting our numbers versus the -- what it was when you were not recognizing it?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [126]

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See, when we were not taking MAT credit, we were treating the entire deferred tax liability as recoverable from the beneficiaries, okay? And it was shown on the -- as part of the tax expense. But because of the expert advisory opinion, the recovery amount is now to be shown as a regulatory asset, whereas the tax liability remains in that same line as tax expense. And if we had shifted the entire amount to regulatory asset, because regulatory asset on accrual basis is also subject to tax, then the actual tax outflow would have been very significant. So we've reviewed the whole position and then also saw that, as per the current estimate, we will be able to recover this MAT credit down the line before it expires. So we started recognizing that MAT credit so that the deferred tax liability comes down and our -- as regulatory recovery also comes down and then pushing down the overall tax leverage.

--------------------------------------------------------------------------------

Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [127]

--------------------------------------------------------------------------------

Okay. So this should not impact -- benefiting or impacting the PAT numbers, I understand. I mean that remains unchanged. It is just an accounting change you were -- you probably had to report at -- about the PBT. You're not to do that. You're reporting at the same level. Is that -- I mean, just to understand, is it benefiting or impacting the PAT?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [128]

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It is benefiting. Without this, the impact would have been much higher, but there is a slight impact as one of the callers also mentioned. There is a marginal impact on the PAT. Our current tax liability goes up because of this.

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Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [129]

--------------------------------------------------------------------------------

Okay. And sir, secondly, a request. Now because of this accounting policy, [it's really] reporting change, your tax rate has become very volatile because the deferred tax is getting reported above and below. So if you can please break up the regulatory deferral account, what is the deferred tax amount, which you're recognizing? And what is the others so that we can have a very normalized tax rate, which you're actually paying? Because, otherwise, I understand it is a -- this is a deferred tax accumulation, which is not actually an outflow.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [130]

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How do we -- do you want this (inaudible)

--------------------------------------------------------------------------------

Dhruv Muchhal, Motilal Oswal Securities Limited, Research Division - Research Analyst [131]

--------------------------------------------------------------------------------

If you can break that up, yes, if you can break that up.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [132]

--------------------------------------------------------------------------------

Okay. We'll try to see that.

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Operator [133]

--------------------------------------------------------------------------------

The next question is from the line of Bhavin Vithlani from SBI Mutual Fund.

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Bhavin Vithlani, [134]

--------------------------------------------------------------------------------

My question is more on the intrastate. You mentioned there's an INR 8,800 crores bidding currently. But if you could give us a 5-year view, in your view, what are -- what is the intrastate CapEx expected over the 5 years? And what of this could we come up for TBCB bids where Power Grid would participate? And there are certain joint ventures that PGCIL had with state of Bihar, Jharkhand. What could be that opportunity over a 5-year basis?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [135]

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You are asking me to look too far. This is very difficult because, one, intrastate is not as certain as interstate. Intrastate, different states have different pace, so we cannot give the -- that kind of numbers. On a 5-year rolling basis, the opportunity should be anywhere between INR 75,000 crores to INR 1 lakh crore kind of investment, which should be forthcoming. If you look at the overall investment requirement of 7% growth or this 5 trillion economy, all those aspirational aspects, if you see, there will be good investment opportunity. But today to say which state, which JV, I mean, that kind of granularity is not available.

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Bhavin Vithlani, [136]

--------------------------------------------------------------------------------

Sure. Any number that you see that in X percentage over time intrastate will also move to TBCB because that's like (inaudible)...

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [137]

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The intrastate, a lot of it is moving to TBCB. Very little is going to RTM. Some of the states are themselves carrying out those projects, so that is not coming out in the market. What we are seeing, like, for example, UP, there are TBCB projects regularly coming. MP has come out with one. Madhya Pradesh -- Maharashtra has come out with one. Jharkhand has come several times, but I don't think it has concluded those bids. So slowly, they are also moving either to a departmental kind of more on TBCB. Bihar was very successful joint venture, and they are not doing TBCB. They are given to this company of ours, joint venture company.

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Bhavin Vithlani, [138]

--------------------------------------------------------------------------------

And my last question is what will be the total capitalization pending for Champa-Kurukshetra? You mentioned INR 2,200 crores of Pole 3, but in the current year target of INR 20,000 crores, INR 25,000 crores, what is the total Champa-Kurukshetra?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [139]

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It is about INR 2,200 crores plus -- let me tell you, Pole 3, Pole 4, [the set of] Pole 3 [per year]. Pole 3 is INR 2,200 crores. I think it's about INR 3,500 crores.

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Bhavin Vithlani, [140]

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[Totally pending] within that INR 20,000, INR 25,000 crores.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [141]

--------------------------------------------------------------------------------

Yes.

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Operator [142]

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The next question is from the line of Mohit Kumar from IDFC Securities.

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Mohit Kumar, IDFC Securities Limited, Research Division - Analyst [143]

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Sir, what is the impact of CERC regulation in the quarter? Was there any impact? And how much of incentive in concluding quarter compared to the previous year?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [144]

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In terms of CERC impact, nothing significant because the regulations are more or less flat. Only that 0.5% additional revenue on account of early submission for this has come. And old assets, the equity has been restricted to 30%. Neither of them have very significant impact on the bottom line. Incentive number for the quarter, we'll just tell you, INR 83 crores compared to INR 76 crores last year.

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Mohit Kumar, IDFC Securities Limited, Research Division - Analyst [145]

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My second question's regarding this -- how much are the interstate TBCB projects in the market right now, how much you open, how much you have bid?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [146]

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Intrastate or interstate?

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Mohit Kumar, IDFC Securities Limited, Research Division - Analyst [147]

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The interstate, interstate.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [148]

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Interstate is -- we just sent that number out, INR 2,700 crores is currently on that bidding, 4 projects, INR 2,700 crores.

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Mohit Kumar, IDFC Securities Limited, Research Division - Analyst [149]

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Okay. [And still] got concluded after roughly around [20-odd billion], right?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [150]

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Which one? The ones which got concluded?

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Mohit Kumar, IDFC Securities Limited, Research Division - Analyst [151]

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Yes. The total cost were around 80 billion, right?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [152]

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No, no.

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Unidentified Company Representative, [153]

--------------------------------------------------------------------------------

Yes, there were -- total was around [9,000] (inaudible) so balance was just (inaudible) interstate (inaudible).

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Operator [154]

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The next question is from the line of Apoorva Bahadur from Jefferies.

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Apoorva Bahadur, Jefferies LLC, Research Division - Equity Associate [155]

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Sir, if you could elaborate on the Ind AS 116 impact, if there has been any on this quarter.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [156]

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We have studied this Ind AS 116. There are few assets, which will come under the purview, but the overall amounts are not significant in relation to our size. There will not be any significant impact of this. We have to do those adjustments, but it is not going to have any material impact.

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Apoorva Bahadur, Jefferies LLC, Research Division - Equity Associate [157]

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Okay. Sir, I'm sorry if I missed something. But could you share the (inaudible) income for the quarter?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [158]

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(inaudible) income for the quarter is INR 56 crores compared to INR 43 crores last quarter -- last year, corresponding quarter.

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Apoorva Bahadur, Jefferies LLC, Research Division - Equity Associate [159]

--------------------------------------------------------------------------------

Okay. And are you receiving this? Or is it just being booked as of now?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [160]

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We first book and then we receive it.

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Apoorva Bahadur, Jefferies LLC, Research Division - Equity Associate [161]

--------------------------------------------------------------------------------

Okay. So from the previous quarter, have you received?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [162]

--------------------------------------------------------------------------------

It is received regularly. Whenever somebody pays, first we adjust the interest and then the principal.

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Apoorva Bahadur, Jefferies LLC, Research Division - Equity Associate [163]

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Okay. Okay. Correct, sir. Sir, last question, if I may ask you, what according to you could be the reason for this sudden increase in the competitive intensity in the TBCB business?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [164]

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I mean there is market pressure and what is the reasoning...

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Apoorva Bahadur, Jefferies LLC, Research Division - Equity Associate [165]

--------------------------------------------------------------------------------

No. Sir, I mean -- so basically, it's all very -- most of our larger competitors, they had sort of calculated their balance sheet to a certain extent.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [166]

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I think, in essence, are still funding that.

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Apoorva Bahadur, Jefferies LLC, Research Division - Equity Associate [167]

--------------------------------------------------------------------------------

Okay.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [168]

--------------------------------------------------------------------------------

Maybe the question is not right.

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Operator [169]

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The next question is from the line of Abhijeet Bora from Sharekhan.

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Abhijeet Bora, Sharekhan Limited, Research Division - Research Analyst [170]

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Yes. Sir, on the Q4 capitalization, CapEx number and also for Q1?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [171]

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Q4 CapEx and capitalization.

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Abhijeet Bora, Sharekhan Limited, Research Division - Research Analyst [172]

--------------------------------------------------------------------------------

Yes.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [173]

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Q4 capitalization during the March '19 quarter, INR 6,275 crores.

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Abhijeet Bora, Sharekhan Limited, Research Division - Research Analyst [174]

--------------------------------------------------------------------------------

INR 6,275 crore capitalization.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [175]

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Yes, Q4.

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Abhijeet Bora, Sharekhan Limited, Research Division - Research Analyst [176]

--------------------------------------------------------------------------------

And CapEx?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [177]

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CapEx of Q4, INR 6,396 crores -- INR 6,393 crores.

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Abhijeet Bora, Sharekhan Limited, Research Division - Research Analyst [178]

--------------------------------------------------------------------------------

And from Q1?

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [179]

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Which was this quarter, INR 2,909 crores.

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Abhijeet Bora, Sharekhan Limited, Research Division - Research Analyst [180]

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No, no, no. This quarter, I already have the numbers for Q1 FY '19.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [181]

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Q1 FY '19, INR 6,421 crores.

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Abhijeet Bora, Sharekhan Limited, Research Division - Research Analyst [182]

--------------------------------------------------------------------------------

Okay. That was CapEx. And capitalization, what?

--------------------------------------------------------------------------------

Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [183]

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INR 2,521 crores plus TBCB. I'll just tell you, INR 4,270 crores total.

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Abhijeet Bora, Sharekhan Limited, Research Division - Research Analyst [184]

--------------------------------------------------------------------------------

INR 4,270 crores, total number. Okay.

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Operator [185]

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The next question is from the line of Rahul Modi from ICICI Securities.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [186]

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Yes. So just the last question, sir, if you could help us, if there is, in case, any adjustments on the profit, if there is any one-off during the quarter, in case if there is any.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [187]

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Current quarter, no. Whatever one-off we have disclosed, I don't think there is any significant one-off. Okay?

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [188]

--------------------------------------------------------------------------------

Right, sir.

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Operator [189]

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Ladies and gentlemen, due to time constraints, that was the last question. I'll now hand the conference over to Mr. Rahul Modi for closing comments.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [190]

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We would like to thank the management of Power Grid Corporation for their time and the opportunity. Thank you, and have a nice evening, sir.

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Ravi Prakash Singh, Power Grid Corporation of India Limited - MD, Director of Personnel & Chairman [191]

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Thank you.