PowerGrid to raise Rs 8,000 cr via bond sale

PTI Mumbai | Updated on May 29, 2013 Published on May 29, 2013

R T Agarwal

The State-run power transmission company, Power Grid Corporation plans to raise Rs 8,000 crore during the fiscal through domestic and international bonds.

“We will be raising nearly Rs 8,000 crore through bonds both domestic as well as international, this fiscal,” Powergrid Corporation’s Director of Finance, R T Agarwal said today at the post-earnings press conference.

The company reported a 7.53 per cent increase in standalone net profit in March quarter at Rs 1,109.44 crore against Rs 1,031.69 crore year ago.

Its total revenues on a standalone basis stood at Rs 3,380.66 crore, up by 7.13 per cent, from Rs 3,155.66 crore in the year-ago period.

This fund raising is a part of the Rs 20,000 crore capital expenditure planned by the company for FY14, he said.

“We will be borrowing some amount from the World Bank and Asian Development Bank, with which we already have a long-term tie-up. Some amount will come from internal accruals and equity contribution. So, for the remaining Rs 8,000 crore, we will go to the markets,” Agarwal said.

Agarwal said contribution from domestic bonds will be higher.

“Since the cost of raising funds in domestic market is lower compared to ECBs, we will be focusing much on domestic bonds,” he said, adding that the process was likely to be completed by January next.

For the full year, PowerGrid reported a standalone net profit of Rs 4,234.50 crore, a 30 per cent rise compared to Rs 3,254.95 crore in 2011-12, while total income for FY13 rose to Rs 13,328.74 crore from Rs 10,785.01 crore in FY12.

On a consolidated basis, its net rose nearly 31 per cent to Rs 4,312.61 crore for the 2012-13 fiscal, compared to Rs 3,302.99 crore in FY12.

In FY13, its total income increased to Rs 13,727.12 crore, from Rs 11,073.58 crore in last fiscal.

Shares of the company closed at Rs 113.35 apiece, up 0.76 per cent, on the BSE.

Published on May 29, 2013
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