Corporate Finance Assignment Part - A

Adithya Prabu
Section B

Roll No 179278075
Company 1 :- Kalpataru Power Transmission Ltd.

Company 2 :- Power Grid Corp of India Ltd.

Kalpataru Power Transmission Ltd.
 History
 Kalpataru Power Transmission Limited (KPTL) is a part of the diversified Kalpataru Group and it was
incorporated in 23rd April of the year 1981 as HT Power Structures Pvt. Ltd.
 KPTL is one of the leading companies in the field of Turnkey projects for EHV Transmission Lines up to
and including 800 KV in India and Overseas.
 As an EPC contractor, the company's scope of work includes design, testing, fabrication,
galvanizing of towers and construction activities from survey, civil works/ foundation, erection to
stringing and commissioning of EHV lines, besides procurement of items such as conductors,
insulators, hardware accessories etc.
 We also participate in Substation projects on a partnership basis.
 The Construction division of the company had completed over 8,000+ kms of turnkey projects in
India for various clients such as the Power Grid Corporation of India and various State Electricity
Boards (SEBs) of Gujarat, Karnataka, Maharashtra, Rajasthan, Andhra Pradesh, Rajasthan, Orissa,
Tamil Nadu and Madhya Pradesh.
Vision

 “To be a dependable leader in energy transmission and construction

industry globally while enhancing the value offering
 in other infrastructure verticals and increase stakeholders’ value”
 Core Values
 KTPL Values
Permanent & intrinsic ideologies that define KPTL’s day-to-day functioning

Management Philosophy
 KPTL puts its resources to deliver quality & sustainable energy transmission solutions.
Thereby, contributing towards betterment of economies & society

Business Principles
 Core principles that define commitment to all stakeholders
 Core Values
 Behind KPTL’s success is its deeply rooted and unique value system that shapes its Business
Principles and Management Philosophy. It is these KPTL values that determine our strategy, drive
execution and deliver success.
 Company Profile
 KPTL one of the largest players in the global power transmission and infrastructure EPC
space.
 With over three and a half decades of experience and expertise combined with a
proven track record of execution, KPTL today has established its footprint over 40
countries.
 With numerous marquee projects to its credit, the Company continues to showcase its
comprehensive capabilities while delivering complete solutions, on a turnkey basis,
along the entire spectrum of design, testing, fabrication, erection and construction of
transmission lines, oil and gas infrastructure and railways projects.
 At the same time, quality, environment and occupational health & safety are at the
core of every KPTL project. The unwavering focus on global quality standards has
ensured ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certifications.
 Company Profile

 KPTL is part of the 48 year-old Kalpataru Group, a diversified conglomerate spanning Real
Estate, Power Generation and Transmission, Construction of Roads,Factories, Buildings and Oil
and Gas Infrastructure and Agri-Logistics spaces.
 Experience of over 36 Years
 Turnover 5,010 Cr
 Employees ~2,300
 Revenue per employee && Management Type

 Employee Count ~ 2300

 Revenue generated = 772.8 million USD
 Revenue per employee generated = 0.336 million dollars
 Kalpataru Power Transmission Ltd. Is promoter managed company
 Product portfolio

 Not Applicable
 People: Chairman and BoD
 Mr. Mofatraj P. Munot - Executive Chairman
 Mr. Sajjanraj Mehta - Independent Director
 Mr. Narayan K. Seshadri - Independent Director
 Mr. Parag Munot - Promoter Director
 Mr. Vimal Bhandari - Independent Director
 Mr. K. V. Mani - Independent Director
 Ms. Anjali Seth – Director
 Mr. Manish Mohnot - Managing Director & CEO
 Mr. Subodh Kumar Jain - Additional Director
 Mr. Imtiaz Kanga - Director
Shareholding pattern
 Highlights of Letter to Shareholders

 By the end of calendar 2016, the total installed capacity in the power sector crossed
3,00,000 MW. However, Transmission and Distribution facilities are yet to catch up. When
compared with the international benchmark of 7 MVA for every MW of generation
capacity, the existing transmission capacity is at approximately 2 MVA per MW in India.
 Our standalone order book touched ` 9,000 Cr at the end of March 2017, excluding bids
where we were favourably placed.
 During the year, we have received firm orders of 6,200 Cr and at the end of the year, we
were favourably placed to receive additional orders of about ` 2,000 Cr.
 During the year, our standalone revenue increased by14% and crossed ` 5,000 Cr
milestone.
 Our consolidated revenue grew by 5% to ` 7,629 Cr. Our standalone EBIDTA during the
year was ` 529 Cr, a growth of 17% over previous year.
 Similarly, delivering on our guidance, our PAT grew by 40% to ` 269 Cr on a standalone
basis and by 107% to 157 Cr on a consolidated basis in FY 16-17.
 Highlights of Letter to Shareholders
 With presence in over 40 countries, we have also forged strong tie-ups with multilateral
funding agencies which helps us expand and run our international business effectively.
 International markets account for almost 52% of our current order book. Over the past five
years, we have forayed into other segments of the infrastructure sector such as railways and
pipelines.
 Our order book in these sectors have reached almost 1,500 Cr. We expect revenues from
Railway business to almost double in the year to come.
 Our subsidiary JMC is on a strong growth track. The order inflow during the year was about
` 3,000 Cr and the order book at the end of the year was ` 7,000 Cr.
 The Company has successfully navigated through the challenges of demonetisation. The
Company maintains its guidance and looks forward to achieving growth in the range of 15-
20% in the year ahead.
 Management Discussion and Analysis
 Per Capita Consumption likely to be about 4,000 units by 2030 due to 24x7 Affordable Power for
All by 2019
 Installed capacity likely to grow from existing 310 GW to 535 GW by 2022**
 175 GW generation capacity by 2022 (33% of overall capacity to be from Renewable Sources
by 2022)
 Green Energy Corridors-I : Inter-State Transmission Systems; already under implementation
 Green Energy Corridors-II for Solar Park Integration of about 20 GW capacity across country is
under consideration (34 solar parks)
 Maintaining grid stability is a challenge given the variability
 Interconnections with neighbouring countries is planned
 Management Discussion and Analysis
 The Company is primarily engaged in the business of Engineering, Procurement and
Construction (EPC) relating to infrastructure comprising power transmission& distribution,
railway track laying & electrification, oil & gas pipelines laying, etc. The Company has
presence in over 40 countries across the globe.
 Geographically, the revenue of the Company can be divided into two different
segments – domestic and international. Revenue from domestic segment was ` 3,016 Cr
(60%) and international segment contributed revenue of ` 1,995 Cr (40%) in FY 17.
 Production (including outsourced) and despatches of transmission line towers were
1,57,830 MT and 1,69,571 MT, respectively in FY 17 as compared to 1,44,887 MT and
1,46,749 MT in FY 16.
 The company erected 1,03,714 MT of transmission towers at various locations
domestically and internationally and executed about 4086 ckm of stringing work to
connect the grid to sub-station or sub-station to sub-station in FY 17 as compared to
about 1,17,298 MT of erection and about 3,287 ckm of stringing work in FY 16.
Power grid corporation of India
limited
 History
 Power Grid Corporation of India Limited (POWERGRID) was incorporated on October
23, 1989 under the Companies Act, 1956 with an authorized share capital of Rs. 5,000
Crore (subsequently enhanced to Rs. 10,000 Crore in Financial Year (FY) 2007-08) as a
public limited company, wholly owned by the Government of India.
 Its original name was the 'National Power Transmission Corporation Limited', and it
was charged with planning, executing, owning, operating and maintaining high-
voltage transmission systems in the country. On 8 November 1990, the National Power
Transmission Corporation received its Certificate for Commencement of Business.
Their name was subsequently changed to Power Grid Corporation of India Limited,
which took effect on October 23, 1992.
 POWERGRID started functioning on management basis with effect from August, 1991
and subsequently it took over transmission assets from NTPC, NHPC, NEEPCO, NLC,
NPC, THDC, SJVNL etc. in a phased manner and it commenced commercial
operation in 1992-93.
 VISION
 “World Class, Integrated, Global Transmission Company with Dominant Leadership in Emerging
Power Markets Ensuring Reliability, Safety and Economy”

MISSION
“We will become a Global Transmission Company with Dominant Leadership in Emerging
Power Markets with World Class Capabilities by:
t World Class: Setting superior standards in capital project management and operations for
the industry and ourselves

t Global: Leveraging capabilities to consistently generate maximum value for all stakeholders
in India and in emerging and growing economies
 MISSION CONTD

 Inspiring, nurturing and empowering the next generation of professionals

 Achieving continuous improvements through innovation and stateof-the-art technology

 Committing to highest standards in health, safety, security and environment”

 Core Values
 Zeal to excel and zest for change
 Integrity and fairness in all matters
 Respect for dignity and potential of individuals
 Strict adherence to commitments
 Ensure speed of response
 Foster learning, creativity and team-work
 Loyalty and pride in POWERGRID
 Company Profile
 A “Navaratna” Central Public Sector Enterprise.
 Central Transmission Utility (CTU) of India
 India’s largest Electric Power Transmission Utility
 Listed Company since 2007
 Consistently rated “Excellent” under Memorandum of Understanding with Ministry of Power
since 1993-94
 Credit Rating
 International : at par with Sovereign rating i.e. ‘BBB-’ (Outlook : Stable) by Fitch and S&P.
 Domestic : Stable/ Highest Safety rating ‘AAA’ by CARE,CRISIL & ICRA
 Company Profile
 145,400 ckm Transmission Lines
 230 Sub-Stations
 >99 % System Availability
 323,215 MVA Transformation Capacity
 Transmission related consultancy to more than 150 domestic clients
 Global footprints in 20 countries catering more that 25 clients
 Owns and operates ≍ 43,450 km of Telecom Network
 Points of Presence in 662 locations
 Intra City network in 105 cities across India
 Backbone Telecom Network Availability > 99.5%
Revenue per employee && Management Type

 Employee Count ~ 9346

 Revenue generated = 25,716.54 crores INR

 Revenue per employee generated = 2.75 crores INR

 Power Grid Corp of India Ltd.. Is promoter managed company

Product Portfolio

Not Applicable
 People : Chairman and BoD
 Shri I. S. Jha - Chairman & Managing Director
 Shri K. Sreekant - Director (Finance)
 Shri Ravi P. Singh - Director (Personnel)
 Shri R. P. Sasmal - Director (Operations)
 Shri Prabhakar Singh - Director (Projects)
 Ms. Shalini Prasad - Government Nominee
 Mr. Jagdish I. Patel - Independent Director
 Shri Tse Ten Dorji - Independent Director
 Shri V.K. Saksena - Chief Vigilance Officer
Shareholding pattern
 Highlight’s of Letter to Shareholders
 I am happy to inform that a number of large and important projects were commissioned/completed
during the year including ±800 kV Champa – Kurukshetra HVDC Bi-pole-1(Pole-I) link; Pole-II & III of ±800
kV Biswanath Chariyali/Alipurduar – Agra HVDC mutli terminal transmission systems; 765 kV double
circuit (D/c) Wardha - Nizamabad line;765kV D/c Gaya- Varanasi line; 765 kV D/c Varanasi – Kanpur –
Jhatikara line;765 kV D/c Angul – Srikakulam line; 765 kV D/c Srikakulam – Vemagiri line (TBCB); 765 kV
D/c Raipur – Wardha (2nd) line; 765kV D/c Tuticorin – Salem (charged at 400 kV);and 400 kV D/c
Ranchi – Chandwa – Gaya line. Your Company achieved capitalization of transmission projects worth
over `31,000Crore (including TBCB projects) during the year.
 The year ended March 31, 2017 also marks the conclusion of XII Plan. I am glad to share with you that
against the CAPEX target of `1,10,000crore for XII Plan, your Company has made a capital
expenditure of `1,12,664crore. Total Capitalization achieved during XII Plan is over `1,17,000crore
including TBCB projects.
 On the financial front, your Company has registered Total Income of `26581.46Crore and Profit after
Tax (PAT) of `7520.15Crore in Fiscal 2017, registering a growth of 25.13% and 26.42% respectively over
the Total Income and PAT in Fiscal 2016. Your Company’s Gross Fixed Assets ason March 31, 2017
stood at `1,49,730Crore as against `1,21,336Crore as on March 31, 2016 (as per Ind AS).
 Highlight’s of Letter to Shareholders
 On the operational front, your Company maintained availability of the transmission network at
99.79% and the number of tripping per line(unplanned) was contained to 0.68 for the year. As on
March 31, 2017, your Company owns & operates a transmission network of about1,39,077 ckm of
inter-State transmission lines, 219 nos. of EHVAC & HVDC sub-stations with transformation capacity of
about 2,89,543 MVA.
 Your Company also made an impressive progress in the areas of Consultancy & Telecom thereby
enhancing the value for the shareholders.Your Company has registered consultancy revenue of
`582.43crore and Telecom revenue of `503.83crore, a growth of 25.13% & 28.45%,respectively over
the previous year. Some of the major consultancy assignments secured during the year include
Railway track electrificationworks for four Zonal Railways and Techno-managerial services for
implementation of 220kV & 132kV transmission system for Railways. On theTelecom front, total
network coverage has been increased by 14.8% to 41,988 km from the earlier reach of 36,563 km
and the number of Pointsof Presence (PoP) locations have been increased to ‘662’ from ‘595’,
registering an increase of 11.26%.
 Highlight’s of Letter to Shareholders

 Further, your Company continues to take various initiatives to fulfil its commitment towards the
goal of sustainable development. These includedesign and installation of multi-circuit & pole
towers and Gas Insulated Switchyard (GIS) to conserve the precious Right of Way (RoW) / land
resource; installation of LED bulbs & solar street lights in substations, fuel catalyst devices for DG
sets, rain water harvesting, installation of solarphotovoltaic in office buildings to meet the internal
energy requirements / CO2 reduction, etc.
 As a part of Corporate Social Responsibility, your Company primarily focuses on inclusive social-
economic growth for development of marginalized and under-privileged sections of the society
residing around its areas of operation. Your Company has undertaken various CSR activities during
the year with thrust on Health, Rural Development/Infrastructural Development, Skill Development,
Education, Environment, etc. During FY 2016-17, your Company has spent `147.27crore on various
CSR activities. Your company has also completed the construction of the‘POWERGRID Vishram
Sadan’ at J.P. Apex Trauma Centre, AIIMS, New Delhi. In addition, your Company contributed an
amount of `30Crore to the ‘Swachh Bharat Kosh’ of the Govt. of India.
 Management Discussion and Analysis
 During the Twelfth Plan period i.e. 2012 - 17, the capacity addition is estimated at 88,537 MW
comprising 26,182 MW in the Central Sector,15,530MW in the State Sector, and 46,825 MW in
the Private Sector, respectively.
 Against aforesaid target of 88,537 MW, 99,209.47 MW capacity has been added up to
March, 2017, which constitutes 112.05 per cent of thetarget envisaged in the Twelfth Plan.
The individual targets achieved by the central, states, and private sector during this period
are 78.12 percent, 157.61 per cent, and 115.92 per cent, respectively.
 The generation capacity addition during 2016-17 was 14,324.50 MW against a target of
9,914.00 MW. Out of 14,324.50 MW added during the year 2016-17, contribution of thermal
sector was significant i.e. 11,730.5 MW (81.89% of the total) and Hydro sector was 1594 MW.
 The Overall generation (including generation from grid connected renewable sources) in
the country has increased from 1173 BU during the year 2015-16 to 1242 BU during 2016-17.
 Management Discussion and Analysis
 During the year 2016-17, a total of 26,300 circuit-km (ckm) of transmission lines and 81,816 MVA
transformation capacity was added in Central, State & Private Sector. This includes 2 nos. of
800kV HVDC line, 11 nos. of 765kV lines & 30 nos. of 400kV lines in Central Sector and 1 no. of
765kV, 33 nos. of 400kV & 147 nos. of 220kV lines in State Sector and 4 nos. of 765kV, 22 nos. of
400kV & 2 nos. of 220kV in Private Sector during this period. With the commissioning of these
transmission lines, the inter-state and intra-state capability of power transfer in the country
enhanced considerably.
 During the year 2016-17, total ex-bus energy availability increased by 4.1% over the previous year
and the peak met increased by 5.7%. The energy requirement registered a growth of 2.6% during
the year against the projected growth of 9.0% and Peak demand registered a growth of 4.0%
against the projected growth of 7.8%.
 Your Company has commissioned new transmission assets comprising 9,723 ckm. and 12 new
Sub-stations with transformation capacity of 34,696 MVA. National Grid of about 75,050 MW inter-
regional power transmission capacity (220 kV & above) has been established till March,2017.
Thank you