PowerGrid to raise Rs 3,000 cr via bonds

PTI Mumbai | Updated on January 23, 2018 Published on August 11, 2015

State-run transmission utility Power Grid Corporation (PGCIL) is likely to soon raise another Rs 3,000 crore under its second round of fund raising plan through domestic bonds to meet working capital expenditure.

“We have already raised Rs 3,000 crore through a bond issue in May. We will again hit the domestic bond market for raising another Rs 3,000 crore soon,” Power Grid Director (Finance) R T Agarwal told reporters after the announcement of the company’s financial results here today.

The Navratna PSU reported a 20.2 per cent rise in June quarter standalone net profit at Rs 1,366.51 crore against Rs 1,136.51 crore in the corresponding period last fiscal, helped by higher income from operations.

Total income from operations during the first quarter ended June 30, 2015 increased by 19.6 per cent to Rs 4,717.55 crore from Rs 3,941.85 crore in the same period a year ago.

This fund raising is a part of the Rs 22,456-crore capital expenditure planned by the company for FY16, he said.

“We are optimistic that we will receive a good response for the issue from the domestic market. Yet, we are not in hurry to raise funds. We are ready to wait till we get the right coupon rate for our bonds,” he said.

The company has already received an approval for raising Rs 10,000 crore through debt.

“We have floated the new issue in the market and on the basis of responses we get from this, we will decide on raising the remaining Rs 4,000 crore,” Agarwal added.

The Central utility’s revenue from transmission business shot up to Rs 4,540.16 crore from Rs 3,812.94 crore in the year—ago quarter.

Revenues from telecom segment stood at Rs 87.83 crore compared with Rs 64.50 crore in the corresponding quarter of the previous fiscal.

With regard to consultancy, revenues increased to Rs 89.02 crore from Rs 60.98 crore in the year—ago period.

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Published on August 11, 2015
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