PowerGrid management says company could see reduction in capital work in FY13

PowerGrid said that the company could see reduction in capital work in progress in FY13. This implies that asset capitalization ( project completion) will be higher this year.

The company has already achieved 40% (of the annual street expectation) asset capitalization. If the company is able to continue this performance in the coming quarters, there can be a positive FY`13 earnings surprise.Rs 28900 crore, operating margins grew by 34% y-o-y to Rs 2460 crore and its adjusted PAT grew by 29% to Rs 910 crore.

PAT margin expansion was lesser than the operating margin expansion due to higher interest and deferred tax expense.12th plan (FY12-FY17), the company has set a capital expenditure target of Rs 1 lakh crore, almost double than that in the 11th five year plan, which the company was able to achieve, unlike the power utilities which have been struggling with the execution.PowerGrid’s stock is currently trading at a 52 week high of Rs 114 and is one of the safest power sector stock.