Transmission Industry

8/10/2019 Transmission Industry

1/25Transmission Line EPC ACMIIL 1

An ISO 9001:2008 Certified Company

INVESTMENT INTERRMEDIATES LTD.

1

R E P OR TS E C T O R

We believe investments in Transmission and Distribution (T&D) infrastructure will drive growth for companies with a strong

presence in these segments. We initiate coverage on KEC International Limited (KEC) and Jyoti Structures Limited (JSL). We

recommend a BUY on KEC with a price target of `89 and BUY on JSL with a price target of `110.

Investment Thesis

Power Demand is estimated to grow at 7.8% between 2010 and 2015 on back of GDP growth of 8% to 8.5% over next ve

years. In line with the power requirement of the country, 95 GW of power capacity is expected to be added in the next ve years,

considering only 33 GW additions over the previous ve years.

As sequential transmission lines addition is required in line with the generation capacity additions, signicant transmission lines

and substations addition are expected over the next ve years. In addition, lower investments in T&D infrastructure over the years,has necessitated strengthening of the existing networks.

Thus to strengthen the existing system and evacuation of power from new power plants, target of 95,283 circuit kms (ckm) of

transmission lines is planned for the 11th plan and 155,000 ckm to 180,000 ckm during the 12th plan. Growth in transmission

systems will include not just the physical growth in the transmission network but also the introduction of higher transmission

voltages for bulk power transmission, with the aim of limiting transmission losses.

Over the next ve years (2010-15E), investments worth `3.4 trillion are expected to be made in T&D as compared to `1.64

trillion made during 2005-10. This presents signicant opportunity for players in transmission line EPC segment.

We initiate coverage on KEC International Limited (KEC) and Jyoti Structures Limited (JSL).

KEC: At CMP of`72, KEC is trading at a P/E of 8.6x its FY11E earnings, 7.8x its FY12E and 7.3 its FY13E earnings. Considering

GOI focus on T&D, KECs strong presence in domestic market, robust order backlog and acquisition of SAE towers which allowKEC to tap US market, we assign a P/E multiple of 9x to its FY13E earnings and recommend a BUY on the stock with a price

target of `89.

JSL:At CMP of `78, JSL is trading at a P/E of 7.9x its FY11E earnings, 6.9x its FY12E and 6.4 its FY13E earnings. Considering

GOI focus on T&D, JSLs presence in domestic market and strong order backlog, we assign a P/E multiple of 9x to its FY13E

earnings and recommend a BUYon the stock with a price target of `110.

Transmission Line EPC

AnalystChinmay S. Gandre

[email protected]

Tel: (022) 2858 3407

21 Mar, 2011





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Transmission Industry

A T&D system comprises transmission lines, substations, switching stations,

transformers and distribution lines. The transmission segment plays a key role in

transmitting power to various distribution entities across the country. A T&D system is

organized in a grid, which interconnects various generating stations and load centers.

This ensures uninterrupted power supply to a load center, even if there is a failure at

the local generating station or a maintenance shutdown.

In India, the T&D system is a three-tier structure comprising distribution networks,

state grids and regional grids. Distribution networks and state grids are primarily

owned and operated by the respective SEBs. Most inter-state transmission links are

owned and operated by PGCIL, with some jointly owned by the SEBs concerned. In

addition, PGCIL owns and operates a number of inter-regional transmission lines to

facilitate the transfer of power from a surplus region to one with decit.

The transmission system in India operates at several voltage levels:

Extra high voltage (EHV): 765 Kv, 400 Kv and 220 Kv

High voltage: 132 Kv and 66 Kv

Medium voltage: 33 Kv, 11 Kv, 6.6 Kv and 3.3 Kv

Low voltage: 1.1 Kv, 220 volts and below

The total length of transmission lines in the country has increased to 7.28 million

ckm in 2007-08 vs 3.6 million ckm in 1998-99.

Transmission Lines (ckm)

Year HVDC 800 Kv 400 Kv 230/220Kv

132/110/90Kv

78/66 Kv 33/22/20Kv

15/11 Kv 6.6/3.3/2.2Kv

Distributionlines

Total

1998-99 1,672 - 36,122 85,141 105,744 41,044 263,165 1,634,840 4,494 3,568,189 5,710,411

1999-00 1,672 - 37,636 86,963 107,522 41,646 269,963 1,660,453 4,431 3,525,121 5,735,407

2000-01 3,176 - 38,004 92,470 110,110 43,169 274,103 1,711,619 4,562 3,570,347 5,847,560

2001-02 4,104 - 40,887 97,238 118,180 43,849 288,226 1,753,331 4,737 3,679,596 6,030,148

2002-03 5,876 - 51,785 99,779 120,958 43,202 302,981 1,936,689 4,558 3,985,909 6,551,737

2003-04 5,876 - 53,616 101,667 121,925 43,297 283,240 1,869,371 6,362 3,859,504 6,344,858

2004-05 6,841 563 57,185 104,758 124,344 45,884 299,639 1,971,722 6,431 3,953,456 6,570,823

2005-06 6,841 563 57,840 108,261 129,465 47,231 309,708 2,047,460 6,474 4,064,516 6,778,359

2006-07 6,841 563 58,018 111,572 132,124 49,462 314,538 2,085,897 6,431 4,149,923 6,939,529

2007-08 6,428 1,692 65,175 115,452 138,137 49,945 335,351 2,231,698 6,519 4,328,549 7,278,946

Source: CEA, CRISIL

GOI thrust on power sectorPower Demand is estimated to grow at 7.8% between 2010 and 2015 on back of GDP

growth of 8% to 8.5% over next ve years. In line with the power requirement of

the country 95 GW of power capacity is expected to be added in the next ve years,

considering only 33 GW additions over the previous ve years.

Capacity additions forecast

MW 2010-11 P 2011-12 P 2012-13 P 2013-14 P 2014-15 P Total

Central 3,690 5,736 5,262 3,021 3,705 21,414

State 3,112 2,800 3,510 3,103 2,648 15,173

Private 4,285 6,397 7,620 12,675 14,545 45,522

Total 11,087 14,933 16,392 18,799 20,898 82,109

Captive 2,362 2,722 2,351 2,673 2,865 12,973

Total (includingcaptive)

13,449 17,655 18,743 21,472 23,763 95,082

Source: CRISIL





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Capacity addition is expected to translate to an investment of `9.3 trillion in power

sector. Sequential transmission lines addition is required in line with the generation

capacity additions to enable seamless ow of power. With Government focus on

reducing T&D losses, investments in T&D are expected to be signicantly higher

compared to the previous outlays. Investments worth `3.4 trillion are expected over

the next 5 years vs 1.64 trillion made during 2005-10.

Capacity additions forecast

`billion 2009-10 E

2010-11 P

2011-12 P

2012-13 P

2013-14 P

2014-15 P

Total (2010-11to 2014-15)

Generation-Utilities 647.7 767.4 884.5 993.6 1,131.2 1,290.8 5,067.4

Generation-Captives 100.2 112.2 124.9 145.4 169.3 197.1 749.0

Total T&D 431.0 499.5 579.4 672.7 781.6 908.8 3,442.0

Total Investments 1,178.9 1,379.1 1,588.8 1,811.7 2,082.1 2,396.7 9,258.5

Source: CRISIL

Investments in

T&D `Bn

2000 to 05 2005 to 10 CAGR growth

2005 to10

2010 to 15P CAGR growth

2010 to15

814 1,638 15% 3,442 16%

Source: CRISIL

Signicant transmission lines addition & Up gradation of existing lines

Traditionally, the government has focus on investments in power generation to

alleviate the power shortage in the country. In the process, the T&D segment has

remained neglected and attracted signicantly less investments in the comparison to

generation. Investments ratio between generation and T&D in India has historically

been 2:1 against an ideal investment ratio of 1:1. To strengthen the existing system

and evacuation of power from new power plants expected during the 11th and the

12th plan, signicant transmission lines and substation additions is planned. Target

of 95,283 circuit kms (ckm) of transmission lines is planned for the 11th plan and

155,000 to 180,000 ckm during the 12th plan.

Transmissionlines (ckm)

Existing by10th plan

Target Additionsfor the 11thplan

Existing capacityas of Sept 2010

Total byMarch 2012

Target additionsin12thplan

765 kV 2,184 5,428 3,829 7,612 25,000 to30,000

HVDC 500 kV 5,872 1,606 NA 7,478 30,000

HVDC 800/600kV

0 3,600 NA 3,600 5,000

400 kV 75,722 49,278 100,910 125,000 50,000

220 kV 114,629 35,371 130,788 150,000 40,000

Total 198,407 95,283 NA 293,690 150,000to155,000

Source: CEA

Substation MVA/MW Existing by10thplan

Additions11thplan

Total by March2012

Estimated additionsin12th plan

HVDC terminal capacity 8,200 6,000 14,200 16,000 to 22,000

765 kV 0 53,000 53,000 1,10,000

400 kV 92,942 52,058 145,000 80,000

230/220 kV 156,497 73,503 230,000 95,000Total 257,639 184,561 442,200 301,000 to 307,000

Source: CEA





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Growth in transmission systems will include not just the physical growth in the

transmission network but also the introduction of higher transmission voltages for bulk

power transmission, with the aim of limiting transmission losses. The up gradation

and replacement of existing transmission lines to higher voltage would increase the

demand for transmission towers.

Development of inter-regional transmission corridors

To facilitate transfer of power from surplus regions to decit regions and evacuation

of power from central sector generation projects and Ultra Mega Power projects

(UMPPs), both 11th and 12th plan are focused on strengthening and developing the

national and inter-regional transmission corridors. In line Power Grid Corporation

of India Limited (PGCIL) has invested `254.4 billion till FY10 and has planned

capital outlay of `295.6 billion for FY11 and FY12. On May 31st 2010 the Central

electricity regulatory commission (CERC) approved PGCIL to proceed with the

execution of 9 high capacity power transmission corridors (HCPTCs) that will help

transport electricity to the main load centers from 48 new IPP plants located in

coal belt, coastal areas or hydroelectricity-rich areas in the Northeast region. The

government has approved`580 billion for the same. Thus, inter-regional transmission

capacity is expected to increase from 13,450 MW to 38,050 MW by 2012 and to

75,150 MW by 2017

Inter-Regional

Capacity - MW

By 10th plan Additions 11th

plan

By 11th Plan Additions in

12th Plan

By 12th Plan

East South 3,130 500 3,630 4,200 7,830

East North 3,430 8,700 12,130 5,900 18,030

East West 1,790 4,700 6,490 10,500 16,990

East-North East 1,260 1,600 2,860 0 2,860North West 2,120 2,100 4,220 10,200 14,420

West-South 1,720 1,000 2,720 6,300 9,020

North East /East

North/West

0 6,000 6,000 0 6,000

TOTAL 13,450 24,600 38,050 37,100 75,150

Source: CEA

Key policies like Accelerated Power Development Reform Programme & Rajiv

Gandhi Grameen Vidyutikaran Yojana (RGGVY) to encourage investments in T&D.

GOI formulated the Accelerated Power Development Reform Programme (APDRP)

under which states are given loans, grants and incentives for upgrading andmodernizing their sub-transmission and distribution (below 33 Kv or 66 Kv networks).

The union government in April 2005 with the objective to provide electricity to all

villages and habitations initiated the Rajiv Gandhi Grameen Vidyutikaran Yojana

(RGGVY). On a countrywide basis, about 67 per cent of the total project cost of

RGGVY schemes amounting to `154 billion has been released till December 2009.

Both these initiatives are expected to encourage investments in the transmission sector.

Opportunities in Global markets

Signicant investments in T&D are expected to be made over 2010-15 across the

globe. Total Investments worth USD 158 billion are expected made in Middle East,

Africa and North America.





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Peer Analysis

Capacities

Jyoti Structures Ltd, KEC International and Kalpataru Power are dominant playersin the industry. KEC is the largest player with an annual capacity of 1.51 million MT

followed by Jyoti Structures and Kalpataru. Apart from their own capacities, these

players also outsource towers from qualied vendors.

In 000 MT FY07 FY08 FY09 FY10

JyotiCapacity 76 96 110 110

Production 61 74 85 119

KEC

Capacity 58 113 151 151


Third party outsourced 36 34 32 32

Purchased 10 24 39 35

Kalpataru

Capacity 84 108 108 108


Third party outsourced 0 NA 13 20

Note: For JSL production numbers includes production outsourced to various parties.Source: ACMIIL Research

Geographical presence

JSL is predominantly a domestic player, with ~78% of the revenues coming from

domestic market. On the other hand, KEC and Kalpataru are diversied with greater

presence in the international markets. Approximately 56% of KECs revenue comes

from international market like Africa, Middle East and Central Asia, while exports

constitute ~43% of Kalpatarus sales.

Particulars KEC Jyoti Kalpataru

Exports as a % of total sales (FY10) 55.8% 22.1% 43.2%

Source: ACMIIL Research, Company

Source: Source: ABS Energy research, Accenture research, Company





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Financial analysis

`Mn Jyoti KEC Kalpataru

Net Sales - FY10 21,297.7 39,063.9 25,960.4

Sales CAGR FY07-10 29.9% 24.2% 19.4%

OPM - FY10 10.7 10.4 12.8

NPM - FY10 3.9 4.8 6.6

PAT CAGR FY07-10 14.9% 21.7% 2.2%

Capital Employed - FY10 8,778.6 16,199.5 16,064.6

D/E - FY10 0.8 1.0 0.6

RONW - FY10 17.0 24.0 17.3

ROCE - FY10 24.7 23.4 20.5


Players have registered healthy sales growth on back of investments in

the T&D segment.

Players enjoys operating margins in the range of 10% to 12%

Being a working capital intensive business, players are leveraged with

D/E up to 1x.

In general, players enjoy healthy return ratios of 17% and above.

Order backlog

Players have strong order backlog giving revenue visibility for next 18 to 22 months

Order backlog

Order back log Q3 FY11( RHS) Order book to TTM sales (LHS)

KEC Jyoti Kalpataru0.0

0.5

1.0

1.5

2.0

2.5

0

20

40

60

80

100

`

Bn

80

41 50

1.6

1.9 1.8






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KEC International Limited (KEC), incorporated in 1945 is one of the leading players

in the power transmission EPC business in India and international markets. KEC

undertakes designing, manufacturing and construction of turnkey high-voltage power

transmission line projects. It also engages in projects related to power distribution

network, railway electrication, sub-stations and optical ber cable installations. The

company has presence across geographies, with revenues from international market

constituting 55% of the total revenues in FY10. In the international markets, KEC is

primarily present in the Middle East, Africa and Central Asia.

KECs business can be broadly divided into transmission, distribution, cables and

railways.

Power Transmission segment

KEC has over 60 years of experience in executing turnkey transmission lines projects.

It offers complete solutions that include tower design, tower testing, manufacturing

and onsite construction up to capacity of 800 Kv transmissions lines. The company

has three manufacturing facilities located in India at Jaipur, Nagpur and Jabalpur

having a total capacity of 151,000 MT. It also has close association with ve value

added partners manufacturing facilities who provide exclusive capacity to KEC of

more than 60,000 MTs per annum.

In `000 MT FY07 FY08 FY09 FY10

Sales 103.3 160.0 182.6 186.9

Production 50.8 92.8 107.1 108.8

Purchases 9.8 23.6 39.0 35.3

Outsourced 35.6 34.1 31.8 32.3

Capacity 58 113 151 151

Source: Company

The company also has 4 tower testing stations, capable of testing towers of up to

1200 Kv transmission line.

B U Y

KEC International Limited

Source: Company

9M FY11 - Sales Break up

Cables10%

SAE Towers6%

Transmission71%

Distribution10%

Telecom andrailway

3%

Key Data (`)

CMP 72

Target Price 89

Key Data

Bloomberg Code KECI IN

Reuters Code KECL.BO

BSE Code 532714

NSE Code KEC

Face Value (`) 2

Market Cap. (`mn) 18120

52 Week High (`) 123

52 Week Low (`) 71

Avg. Daily Volume (6m) 154,870

Shareholding Pattern (%)

Promoters 41.7

FII 5.0

DII 38.1

Others 15.2

Total 100.0

(`mn) FY11E FY12E FY13E

Revenues 47,067.7 54,236.0 58,578.3

Operating Profits 4,824.4 5,553.2 5,922.3

OPM (%) 10.3 10.2 10.1

PAT 2,151.3 2,379.2 2,533.5

PAT Margin (%) 4.6 4.4 4.3

EPS (`) 8.4 9.3 9.9





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Power Distribution segment

KEC has successfully executed substation, distribution and rural electrication

projects in India and overseas. For substations it has a strategic alliance with Power

Engineers Inc., USA. The company is pre qualied for all the types of substations upto 400 kV. The rural electrication business has electried 7,500 Villages.

Cables segment RPG Cables

RPG Cables merged with KEC from March 2010. The segment manufactures a range

of control & power cables that are critical to the distribution network of power utilities

and for industrial expansion. (Annexure: Product & service range)

Railways segment

The segment undertakes civil infrastructure including earthwork, bridges, tunnels

and station building along with track laying and signaling work. It has electried

5,000 track kms. The company is pre-qualied for all the railway construction related

activities

SAE Towers (Wholly owned subsidiary w.e.f Sept 2010)

KEC acquired 100% stake in SAE Towers for a total consideration of USD 95 million.

Headquartered in Texas, SAE Towers manufactures of steel lattice transmission

towers. SAE has a total annual production capacity of 100,000 MT located at

Monterrey, Mexico (35,000 MT) and Belo Horizonte, Brazil (65,000 MT). SAE

supplies towers to United States, Canada, Brazil, Mexico and the rest of Latin America.

Currently, SAE is operating at 65%to 70% utilizations levels. The company has an

annual turnover of USD 137 million (2010). Order backlog as of Q3 FY11 stands

at `7.2billion.

Order book

As of Q3 FY11 KECs standalone order backlog stands at `73 billion, which is1.8x

TTM sales. International orders constitute 49% of the total order book, while the rest

51% constitute of domestic orders. International orders primarily constitute of orders

from Middle East, Africa, Central Asia and America.

Particulars -`Mn Middle East

and Africa

Central

Asia

America Asia

Pacific

Domestic Total %

Transmission 11,910.0 7,740.0 7,620.0 240.0 23,280.0 50,790.0 69.9

Distribution 7,970.0 7,400.0 15,370.0 21.2

Cables 1,830.0 1,830.0 2.5

E-BOP 400.0 400.0 0.6

Telecom 380.0 380.0 0.5

Railways 3,900.0 3,900.0 5.4

Total 11,910.0 15,710.0 7,620.0 240.0 37,190.0 72,670.0 100.0

% 16.4 21.6 10.5 0.3 51.2 100.0

Source: Company





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Key Positives

KECs Strong presence in Indian markets

Although KEC has presence in various regions across the globe the company is a

dominant player in the Indian markets also with a market share of ~18% to 19%.The company has a strong track record and has expertise in 765 Kv, 500 Kv and

400Kv transmission lines. KEC also has the capability to construct substations of

up to 400 kV, making it a total turnkey EPC contractor for power transmission lines.

Acquisition of SAE Towers to increase presence in the US markets and to

drive revenues and protability

SAE Towers is the market leader in the US, Mexico and Brazil with a market

share of over 40%. With acquisition of SAE, KEC can leverage on SAE to build

relationship with power utilities in these regions and also use its (SAEs) facilitiesas back up facilities to expand its presence in these markets. Post acquisition, KEC

(India) exposure to these markets has increased to ~11%, which earlier used be less

than 2%. Recently, KEC (India) won a major order `7.35 billion from Canada; for

this order majority of the supplies would be made from India. However, incase of

any logistical related issue, SAE Tower facility would serve as a back up.

SAE Towers also earns higher operating margins in range of 13% to 14%, which

is expected to drive protability.

Strong Order backlog

Current stand alone order backlog stands at `73 billion. In addition SAE Towers

has an order backlog of`7 billion, which takes the total consolidated order backlogto `80 billion. Order inows have been strong in recent quarters, the company

received order in excess of `40 billion during 9 M FY11. Both domestic as well

as international market has contributed to the growth in the companys order book.

Source: ACMIIL Research

Domestic Market Share

Kalpataru

16% to 17%

Jyoti Structures

17% to 18 %

Others

47% to 48%

KEC

18% to 19%

Source: Company

Consolidatd order book break up

0.00

80.00

70.00

60.00

50.00

40.00

30.00

20.00

10.00

Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11

Transmission Line CablesRailway and Telecom SAE Tower

Order backlog sandalone

Q4 FY0945

50

55

60

65

70

75

Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11

`

Bn

51.63 51.55

55.43

60.51

57.07 56.5

64.63

73





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Key Concerns

Working capital intensive business

The T&D business is working capital intensive in nature and the requirement is

primarily funded through short-term loans. Working capital loans required stoodat ~30% of sales. Thus, working capital management is crucial and increase in

working capital requirement has a direct impact on interest cost and thereby the

protability of the company.

Uncovered risk related to raw material prices

Domestic transmission line EPC contracts include a price variation clause for

adjusting changes in raw material prices. However international contracts are

based on xed price. Steel, aluminum and zinc are the main raw materials for

construction of a transmission line. Steel and aluminum, constitute about 15 %

of the operational costs each, and zinc constitutes around 2-3%. To neutralize the

effect of uctuations in raw material prices KEC generally enters into hedgingof aluminum through forward contracts. For supply of steel, KEC enters into

advance contracts with vendors for 5-6 months, for reducing risks involved with

its price changes. However, steel is not fully covered, keeping the risk open for

the company to that extent. Currently ~ 35% of the total order backlog (primarily

export orders) is not subject to price variation clause.

Foreign currency risk:

KEC has presence in more than 40 countries. Revenues from international markets

constitute approximately 55% of total revenues. The company tries to match

receipts with payments. However, foreign exchange risk is not fully covered.

CompetitionApart from the established dominant player approximately 45 others EPC

contractors participated in PGCIL tenders in 2010. Participation by such players

has signicantly increased competition and has resulted in increased pricing

pressure in the industry.

Operating margins of all the three major players have dropped in range of 100 to 200

bps as compared to FY08.

Operating profit margins

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

8.810.4

12.5

11.411.6

14.8

11.812.8

12.6

FY08 FY09 FY10

KEC Jyoti Kalpataru






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BOOT

The company is participating in the bids for BOOT projects. These projects

requiring high investments would be developed in 70:30 debt/equity ratio. In

case the company emerges as a successful bidder for the project, it will convert

the company from current pure product & solutions provider (EPC contractor) to

services-cum-solutions provider (Owner cum EPC contractor). The clear picture

related to nancial requirements, protability in view of SEBs being the client

and augmented man power requirements can emerge only after winning of a

particular project.

Foray into new verticals

KEC is foraying into new verticals like railway infrastructure. Indian Railways

(IR) is a monopsony market, which limit bargaining power of KEC. In addition,

as company is trying to create its space in this vertical, margins are also expected

to be subdued, which will have an impact on consolidated margins.

SWOT Analysis

Strength Weakness

KECs strong track record and execution

capabilities.

Strong presence in domestic market with market

share of 18% to 19%

Strong order backlog of`80 billion, gives revenue

visibility for next 18 to 22 months.


Foreign currency Risk

Uncovered risk related to raw material prices

Opportunity Threats

Capacity addition planned for the 11th and

12th plan would lead to significant addition of

transmission lines.

Up gradation of existing T&D network

Policies like RGGVY and APDRP to encourage

investment in T&D.

Acquisition of SAE towers provides opportunities

to tap US markets

Competition from domestic EPC contractors has

led to increased pricing pressure in the industry.

Unrest in middle East

Financials

KECs net sales have increased at a CAGR of 24% from `20,406.3 million in FY07

to `39,072.3 million in FY10 on back of investments in T&D. We expect net salesto grow at CAGR of 15% to `58,578.3 million in FY13E.

Operating margins dropped from 12% in FY07 to 10.4% in FY10 on account of

increased pricing pressure in the industry. We expect marginal fall in operating prots

margins as we expect SAE towers which earns operating margins in range of 13%

to 14% to partly arrest fall in margins on account of increased pricing pressure in

domestic industry. We expect the company to register OPM of 10.3%, 10.2% and

10.1% in FY11E, FY12E and FY13E respectively.





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Valuation and Recommendation

At CMP of `72, KEC is trading at a P/E of 8.6x its FY11E earnings, 7.8x its FY12E

and 7.3 its FY13E earnings. Considering GOI focus on T&D, KECs strong presence

in domestic market, robust order backlog and acquisition of SAE towers which allowKEC to tap US market, we assign a P/E multiple of 9x to its FY13E earnings and

recommend a BUY on the stock with a price target of `89.

Peer Valuation One year forward PE Chart

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Jyoti Strcutures KEC International Kalapatau Power

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Close Price 15 PE 12 PE 10 PE 8 PE






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Financials

Profit & Loss Account `Mn

Particulars FY07 FY08 FY09 FY10 FY11E FY12E FY13E

Net Sales 20,406.3 28,144.7 34,273.9 39,063.9 47,067.7 54,236.0 58,578.3Total Expenditure 17,887.8 24,601.5 31,278.1 35,013.7 42,243.2 48,682.8 52,656.0

Operating Profit 2,518.5 3,543.2 3,010.3 4,058.6 4,824.4 5,553.2 5,922.3

Other Income 6.9 2.5 5.9 9.9 10.0 10.0 10.0

EBIDTA 2,525.4 3,545.7 3,016.2 4,068.5 4,834.4 5,563.2 5,932.3

Depreciation 334.4 250.7 230.0 270.2 403.6 483.1 508.3

EBIT 2,191.1 3,295.1 2,786.2 3,798.3 4,430.8 5,080.1 5,424.0

Interest 592.5 676.5 999.7 864.7 1,121.2 1,419.8 1,526.3

PBT 1,598.6 2,618.5 1,786.5 2,933.6 3,309.6 3,660.3 3,897.7

Taxes 552.2 896.9 618.4 1,037.0 1,158.4 1,281.1 1,364.2

PAT 1,046.4 1,721.6 1,168.1 1,896.6 2,151.3 2,379.2 2,533.5

Growth in sales (%) 37.9 21.8 14.0 20.5 15.2 8.0

Growth in Operating profits (%) 40.7 -15.0 34.8 18.9 15.1 6.6

Growth in PAT (%) 64.5 -32.2 61.6 14.0 10.6 6.5

OPM (%) 12.3 12.6 8.8 10.4 10.3 10.2 10.1

Net Profit Margin (%) 5.1 6.1 3.4 4.8 4.6 4.4 4.3


Balance Sheet `Mn


Sources of Funds

Share Capital 376.9 493.4 493.4 514.2 514.2 514.2 514.2

Reserves and Surplus 2,343.1 4,458.3 5,087.4 7,356.8 8,911.6 10,694.3 12,631.4

Total Shareholders Funds 2,719.9 4,951.7 5,580.9 7,870.9 9,425.7 11,208.5 13,145.5

Total Loan Funds 3,864.2 5,917.7 6,218.2 7,867.4 14,185.5 15,020.2 15,963.7

Net Deferred Tax Liability 334.8 446.8 298.2 461.1 461.1 461.1 461.1

Total Capital Employed 6,918.9 11,316.2 12,097.3 16,199.5 24,072.3 26,689.7 29,570.3

Application of Funds

Gross Block 4,676.3 5,213.0 6,319.6 8,357.4 11,370.3 13,420.3 14,120.3

Less: Accumulated Depreciation 600.0 898.5 1,247.8 1,570.1 1,973.7 2,456.8 2,965.2

Net Block 4,076.2 4,314.4 5,071.8 6,787.4 9,396.5 10,963.4 11,155.1

Capital Work in Progress 22.9 189.0 543.3 412.8 450.0 100.0 100.0

Goodwill on consolidation 0.0 0.0 0.0 0.0 2,756.6 2,756.6 2,756.6

Investments 205.9 4.6 0.0 0.0 0.0 0.0 0.0

Net Current Assets 2,569.4 6,561.8 6,482.2 8,999.3 11,469.2 12,869.7 15,558.6

Deferred Tax Assets 44.5 246.4 0.0 0.0 0.0 0.0 0.0

Total Assets 6,918.9 11,316.2 12,097.3 16,199.5 24,072.3 26,689.7 29,570.3






1


Cash flow Statement `Mn


PBT 1,598.6 2,618.5 1,786.5 2,933.6 3,309.6 3,660.3 3,897.7

Add

Depreciation 334.4 250.7 230.0 270.2 403.6 483.1 508.3

Interest 603.2 680.6 1,016.7 944.7 1,121.2 1,419.8 1,526.3

Profit before working capital changes 2,389.4 3,618.1 3,396.7 3,644.2 4,834.4 5,563.2 5,932.3

Working capital changes -2,213.4 -2,669.4 1,010.0 -2,519.4 -2,442.4 -1,626.6 -2,071.9

Less Taxes -394.6 -905.4 -624.5 -778.2 -1,158.4 -1,281.1 -1,364.2

Net Cash flow from operating activities -218.5 43.4 3,767.2 346.6 1,233.7 2,655.5 2,496.2

Net Cash flow in investment activities -98.2 -317.8 -1,380.6 -508.5 -5,806.6 -1,700.0 -700.0

Net Cash flow from financing activities -99.2 556.4 -1,687.4 -678.3 4,600.4 -1,181.6 -1,179.2

Net increase /(decrease) in cash -416.0 282.0 699.1 -840.2 27.5 -226.1 617.0

Op. balance of cash and cash equivalents 629.9 213.9 689.9 1,409.9 699.3 726.8 500.7

Add: cash balance of jointly controlled operation 0.0 0.0 20.8 0.0 0.0 0.0 0.0

Add: cash balance acquired under the scheme 0.0 184.5 0.0 129.6 0.0 0.0 0.0

Cl. balance of cash and cash equivalents 213.9 680.4 1,409.9 699.3 726.8 500.7 1,117.7


Ratios


Profitability Ratios

OPM (%) 12.3 12.6 8.8 10.4 10.3 10.2 10.1

PAT Margin (%) 5.1 6.1 3.4 4.8 4.6 4.4 4.3

RONW (%) 38.5 34.8 20.9 24.0 22.8 21.2 19.3

ROCE (%) 31.7 29.1 23.0 23.4 18.4 19.0 18.3

Per Share Ratios

EPS (Rs.) 5.6 7.0 4.7 7.3 8.4 9.3 9.9

CEPS (Rs.) 5.4 7.7 5.4 8.4 9.9 11.1 11.8

Adj BV Per Share (`) 14.4 20.1 22.6 30.6 25.9 32.9 40.4

Valuation Ratios

P/E (x) - - - 9.8 8.6 7.8 7.3

P/CEPS (x) - - - 8.5 7.2 6.5 6.1

P/BV (x) - - - 2.4 2.8 2.2 1.8

Capital Structure Ratios

Debt/Equity 1.4 1.2 1.1 1.0 1.5 1.3 1.2

Current Ratio 1.3 1.5 1.3 1.5 1.5 1.5 1.6

Turnover Ratios

Debtors turnover ratio 2.3 2.0 1.8 2.0 1.9 1.9 1.9

Inventory turnover ratio 13.6 13.7 15.2 15.6 15.2 15.2 15.2

Fixed Asset Turnover 5.0 6.5 6.8 5.8 5.0 4.9 5.3

Source: ACMIIL Research,





1


Jyoti Structures Limited (JSL), incorporated in 1974, is a turnkey solutions provider

in transmission & distribution segment. Over the past 3 decades it has successfully

executed over 600 projects. The company is primarily focused on domestic market,

with revenues from domestic market constituting 78% of total revenues.

JSLs business can be broadly divided into transmission lines, substation and rural

electrication projects.

Transmission lines

JSL has over 30 years of experience in executing turnkey projects in the eld of extra

high voltage (EHV) transmission lines. It offers complete solutions that include tower

design, tower testing, manufacturing and onsite construction up to capacity of 800

Kv HVAC or 500 Kv HVDC. The company also has its own testing facilities that

can test towers up to 1,200 Kv. It has its manufacturing facilities located in Nasik

(Annual Capacity: 68,000 MT) and Raipur (Annual Capacity: 42,000 MT). In FY10,

transmission lines contributed 70% to its total revenues.

Substations

JSL has undertaken projects ranging from the augmentation of existing substations

to development of new substations. It has capabilities to construct substations up to

400 Kv and has successfully completed 559 bays. Substations contributed 15% to

total revenues in FY10.

Distributions/ Rural electrication

JSL has electried over 2,361 villages and provides connections to over 450,000

households. Currently electrication of 4,447 villages is in progress. This segment

contributed 15% to total revenues in FY10.

B U Y

Key Data (`)

CMP 78

Target Price 110

Key Data

Bloomberg Code JYS IN

Reuters Code JYTS.BO

BSE Code 513250

NSE Code JYOTISTRUC

Face Value (`) 2

Market Cap. (`mn) 6390

52 Week High (`) 178

52 Week Low (`) 77

Avg. Daily Volume (6m) 377,835

Shareholding Pattern (%)

Promoters 27.61

FII 11.01

DII 29.88

Others 31.5

Total 100.0

(`mn) FY11E FY12E FY13E

Revenues 24,211.9 26,456.0 29,117.1

Operating Profits 2,552.1 2,683.7 2,976.4

OPM (%) 10.5 10.1 10.2

PAT 992.4 1,141.8 1,229.7

PAT Margin (%) 4.1 4.3 4.2

EPS (`) 9.9 11.3 12.2

Jyoti Structures Limited

JSL: EPC Contractor for TransmissionDistribution Lines and Substation

High Voltage Transmission Line Distribution Line

Transfer of Power from Generating Station to Cinsumer

Substation Consumer

PowerGeneationStation

Source: Company

Transmission Towers

Capacity Production Utilisation

FY06 FY07 FY08 FY09 FY10 0

20

40

60

80

100

120

0

20

40

60

80

100

120

140

000MT





1


Order book

As of Q3FY11 JSLs order backlog stands at `41 billion (~200,000 MT), which is

2x TTM sales. Domestic orders constitute 82% of the total order book, while exports

constitute the remaining 18%. Clients wise, SEBs together constitute 58% of the totalorder book followed by PGCIL (26%) and private players constituting the remaining

16%. Segment wise transmission line constitutes 80% of the total order backlog

followed by rural electrication (15%) and substations (5%).

Foreign Operations

To expand its presence in the Gulf, JSL has a formed joint venture company named

Gulf Jyoti International LLC (GJIL) with Gulf Investment Corporation. JSL stake

in the JV is 30%. GJIL has its facilities located in Dubai with an annual capacity of

50,000 MT. As of Q3 FY11, GJILs order book stands at ~`10 billion. JSL has also

formed a subsidiary, Jyoti Structures Africa (Pty) Ltd. in South Africa, in 2007 to

participate in local transmission markets.

Apart from Gulf and African region the company also plans to foray in the US

market. It is planning to set up a facility in USA that will manufacture steel towers.

The company plans to invest USD 12 million for the same.

Source: Company

SubstationRuralTransmission

5%15%

80%

Order Book Break Up

ExportDomestic

Order Book Break Up

82%

18%





1


Key Positives

JSLs strong presence in domestic T&D segment

JSL is one of the dominant player in the industry with a domestic market share of

~17 to 18%. The company has a strong track record having successfully completed24,568 ckm transmission line and designed/tested towers up to a capacity of 800

kV HVAC or 500 kV HVDC for various utilities. JSL also has the capability to

construct substations of up to 400 kV, making it a total turnkey EPC contractor for

power transmission lines.

Strong Order backlog

JSL order backlog has increased from `36.06 billion in FY09 to `41 billion in Q3

FY11. Current order backlog is 1.9x TTM sales and gives revenue visibility till FY13.Order inows have improved in last four quarters, with company registering order

inows worth `7,000 million in Q3 FY11.

Margins immune from uctuations in raw material prices

Most of the domestic projects have a variable price clause, which provides cushion

against uctuations in the prices of major raw materials such as steel and zinc. With

the domestic business accounting ~ 81% of the companys order book, margins are

largely immune to uctuations in raw material prices.

Domestic Market Share

Kalpataru16% to 17%

Others

47% to 48%KEC

18% to 19%

Jyoti Structures

17% to 18 %


Order Back Log

25

27

29

31

33

35

37

39

41

43

45

Q1FY09

Q2FY09

Q3FY09

Q4FY09

Q1FY10

Q2FY10

Q3FY10

Q4FY10

Q1FY11

Q2FY11

Bn

Q3FY11

35.6 36.16 35.1 36.06

39.5938.69

40.341.5

41.06

42.541.5

Order Inflow

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Q1FY09

Q2FY09

Q3FY09

Q4FY09

Q1FY10

Q2FY10

Q3FY10

Q4FY10

Q1FY11

Q2FY11

Mn

Q3FY11

Source: Company





1


Key Concerns


The T&D business is working capital intensive in nature and the requirement is

primarily funded through short-term loans. In FY10, working capital loans requiredstood at 28% to 30% of sales. Thus, working capital management is crucial and

increase in working capital requirement has a direct impact on interest cost and

thereby the protability of the company.

Competition

Apart from the established dominant player approximately 45 others EPC contractors

participated in PGCIL tenders. Participation by such players has signicantly increased

competition and has resulted in increased pricing pressure in the industry.

Operating margins of all the three major players have dropped in range of 100 to 200

bps as compared to FY08.

BOOT

The company is participating in the bids for BOOT projects. These projects requiring

high investments would be developed in 70:30 debt/equity ratio. In case the company

emerges as a successful bidder for the project, it will convert the company from current

pure solutions provider (EPC contractor) to services-cum-solutions provider (Owner

cum EPC contractor). The clear picture related to nancial requirements, protability

in view of SEBs being the client and augmented man power requirements can emerge

only after winning of a particular project.

SWOT Analysis

Strength Weakness

JSLs strong track record and execution capabilities.

Strong presence in domestic market with market share of

17% to 18%

Strong order backlog of `41 billion, gives revenue visibility

for next 18 to 22months.


Opportunity Threats

Capacity addition planned for the 11th and 12th plan would

lead to significant addition of transmission lines.

Up gradation of existing T&D network

Policies like RGGVY and APDRP to encourage investment

in T&D.

Competition from domestic EPC

contractors has led to increased

pricing pressure in the industry.


Operating profit margins

KEC Jyoti Kalpataru

FY08 FY09 FY100.0

2.0

4.0

6.0

8.0

10.0

12.0

14.016.0

8.8

10.4

12.5

11.6

14.8

11.8 12.8

12.611.4





1


Financials

JSLs net sales have increased at a CAGR of ~30% from `9,724 million in FY07 to

`21,297.7 million in FY10 on back of investments in T&D. We expect net sales to

grow at CAGR of 11% to`

29,117.1 million in FY13E.Operating margins dropped from 13% in FY07 to 10.7% in FY10 on account of

increased pricing pressure in the industry. We expect OPM to further drop to 10.2%

in FY13E.

Rights Issue

The company issued Non Convertible Debentures (NCDs) with Detachable Warrants

on rights basis.

Details of the issue

Issue: 10,261,243, 7% NCD of face value `120 each with 20,522,486 detachable

warrants

Size of the issue `1231.4 million (excluding conversion of warrants)

Total Issue Size `3,694.05 million (assuming full conversion of warrants)

Issue Price/ Face value per

NCD

`120

Warrant Exercise Price `120

Rights Ent it lement 1 NCD with 2 detachable warrants for every 8 equity shares held

Redemption period for NCDs NCD shall be redeem after 15 months

Warrant Exercise Period Warrants can be exercised within 18 months from the Date of Allotment during

the periods set out below:

August 15, 2011 to September 15, 2011 (both days inclusive),

February 15, 2012 to March 15, 2012 (both days inclusive),

June 15, 2012 to end of 18th month from the Date ofAllotment.

Additional Subscription by the

Promoter

Promoter and Promoter Group have right to subscribe to their entitlement

in this Issue, including by subscribing for renunciation, if any, made by

any other Shareholder. The Promoter and the Promoter Group may apply

for additional NCDs with detachable Warrants in the Issue, to the extent of

any unsubscribe portion of the Issue, such that the total subscription by our

Promoter and Promoter Group (including their Rights Entitlement) shall not

exceed 90% of the Issue size.

NCD Allotted 9,346, 310 ( `1121.56 million)

War rants Allotted 18,692,620 ( 2 warrants for every 1 NCD issued)

Source: Company

We have considered conversion of allotted warrants into equity shares in our nancials.

Hence, we have increased share capital to `201.4 million.





1


Valuation and Recommendation

At CMP of `78, JSL is trading at a P/E of 7.9x its FY11E earnings, 6.9x its FY12E

and 6.4 its FY13E earnings. Considering GOI focus on T&D, JSLs presence in

domestic market and strong order backlog, we assign a P/E multiple of 9x to itsFY13E earnings and recommend a BUYon the stock with a price target of `110.


One year forward P/E Chart

4/1

/05

8/1

/05

12/1

/05

4/1

/06

8/1

/06

12/1

/06

4/1

/07

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/07

12/1

/07

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/08

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4/1

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0

8/1

/1

0

12/1

/1

00

50

100

150

200

250

300

350

`

Close Price 8 PE 15 PE 12 PE 10 PE

Peer Valuation One year forward PE Chart

4/3/2006

7/3/2006

10/3/2006

4/3/2007

7/3/2007

10/3/2007

1/3/2007

4/3/2008

7/3/2008

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10/3/2010

1/3/2009

10/3/2011

Jyoti Strcutures KEC International Kalapatau Power

0.0

5.0

10.0

15.0

20.025.0

30.0

35.0

40.0

45.0






1


Financials

Profit & Loss Account `Mn


Net Sales 9,723.8 13,738.3 18,393.6 21,297.7 24,211.9 26,456.0 29,117.1Total Expenditure 8,460.8 11,980.3 16,318.4 19,011.1 21,659.8 23,772.3 26,140.8

Operating Profit 1,263.0 1,758.0 2,075.2 2,286.6 2,552.1 2,683.7 2,976.4

Other Income 8.2 15.2 56.4 63.5 60.0 60.0 60.0

EBIDTA 1,271.2 1,773.2 2,131.6 2,350.0 2,612.1 2,743.7 3,036.4

Depreciation 59.4 72.0 99.4 178.4 201.4 220.2 269.0

EBIT 1,211.8 1,701.2 2,032.3 2,171.7 2,410.7 2,523.5 2,767.4

Interest 329.3 467.3 687.8 795.7 835.5 711.2 815.6

PBT 882.5 1,233.9 1,344.5 1,376.0 1,575.3 1,812.3 1,951.9

Taxes 327.9 488.7 493.4 533.0 582.8 670.6 722.2

PAT 554.7 745.2 851.1 843.0 992.4 1,141.8 1,229.7

Less: Excess / (Short) Provision of Taxes for earlier years 4.7 45.6 0.2 9.1 0.0 0.0 0.0

PAT 549.9 699.6 851.0 833.9 992.4 1,141.8 1,229.7

Growth in sales (%) 41.3 33.9 15.8 13.7 9.3 10.1

Growth in Operating profits (%) 39.2 18.0 10.2 11.6 5.2 10.9

Growth in PAT (%) 27.2 21.6 -2.0 19.0 15.1 7.7

OPM (%) 13.0 12.8 11.3 10.7 10.5 10.1 10.2

NPM (%) 5.7 5.1 4.6 3.9 4.1 4.3 4.2


Balance Sheet `Mn


Sources of Funds

Share Capital 161.4 162.4 163.3 164.0 201.4 201.4 201.4

Reserves and Surplus 2,543.7 3,217.5 4,024.8 4,747.3 5,506.1 8,620.0 9,616.0

Total Shareholders Funds 2,705.1 3,379.8 4,188.1 4,911.3 5,707.5 8,821.4 9,817.4

Total Loan Funds 1,607.5 2,249.0 3,125.1 3,689.7 3,947.0 1,659.3 2,026.1

Net Deferred Tax Liability 55.1 67.9 91.0 177.5 177.5 177.5 177.5

Miority interest 0.0 0.0 0.5 0.0 0.0 0.0 0.0

Total Capital Employed 4,367.8 5,696.7 7,404.7 8,778.6 9,832.1 10,658.2 12,021.1

Application of Funds

Gross Block 979.8 1,140.6 1,901.1 2,438.1 2,685.4 2,935.4 3,735.4

Less: Accumulated Depreciation 385.6 456.2 550.5 687.8 889.2 1,109.3 1,378.3

Net Block 594.1 684.4 1,350.6 1,750.4 1,796.3 1,826.1 2,357.2

Capital Work in Progress 11.2 15.0 51.8 27.3 30.0 380.0 30.0

Investments 121.0 95.6 166.6 166.6 166.6 166.6 166.6

Net Current Assets 3,617.6 4,884.1 5,823.6 6,834.3 7,839.2 8,285.5 9,467.3

Misc Exp 23.9 17.5 12.1 0.0 0.0 0.0 0.0

Total Assets 4,367.8 5,696.7 7,404.7 8,778.6 9,832.1 10,658.2 12,021.1






1


Cash flow Statement `Mn


PBT 882.5 1,233.9 1,344.5 1,376.0 1,575.3 1,812.3 1,951.9

Add

Depreciation 59.4 72.0 99.6 178.6 201.4 220.2 269.0

Interest 329.3 467.3 687.7 795.7 835.5 711.2 815.6

Profit before working capital changes 1,354.3 1,824.5 2,167.6 2,299.8 2,612.1 2,743.7 3,036.4

Working capital changes -1,399.0 -1,198.1 -1,005.8 -81.5 -1,068.8 -651.5 -825.0

Less Taxes -334.8 -487.0 -653.3 -489.7 -582.8 -670.6 -722.2

Net Cash flow from operating activities -384.2 93.9 508.5 1,728.6 960.4 1,421.6 1,489.2

Net Cash flow in investment activities -173.0 -164.3 -378.8 -1,265.9 -250.0 -600.0 -450.0

Net Cash flow from financing activities 611.1 117.2 121.2 -311.4 -811.8 -989.4 -682.4

Net increase /(decrease) in cash 53.9 46.8 250.9 151.3 -101.3 -167.8 356.9

Op. balance of cash and cash equivalents 39.3 93.2 140.0 390.9 542.2 440.9 273.1

Cl. balance of cash and cash equivalents 93.2 140.0 390.9 542.2 440.9 273.1 629.9


Ratios


Profitability Ratios

OPM (%) 13.0 12.8 11.3 10.7 10.5 10.1 10.2

PAT Margin (%) 5.7 5.1 4.6 3.9 4.1 4.3 4.2

RONW (%) 20.3 20.7 20.3 17.0 17.4 12.9 12.5

ROCE (%) 27.7 29.9 27.4 24.7 24.5 23.7 23.0

Per Share Ratios

EPS (`.) 6.7 8.5 10.4 10.2 9.9 11.3 12.2

CEPS (`.) 7.5 10.0 11.6 12.5 11.9 13.5 14.9

BV Per Share (`) 33.5 41.6 51.3 59.9 56.7 87.6 97.5

Valuation Ratios

P/E (x) - - - 7.7 7.9 6.9 6.4

P/CEPS (x) - - - 6.3 6.6 5.8 5.2

P/BV (x) - - - 1.3 1.4 0.9 0.8

Capital Structure Ratios

Debt/Equity 0.6 0.7 0.7 0.8 0.7 0.2 0.2

Current Ratio 2.3 2.5 2.1 2.0 2.0 2.0 2.0

Turnover Ratios

Debtors turnover ratio 2.1 2.2 2.6 2.5 2.5 2.5 2.5

Inventory turnover ratio 11.9 17.3 12.0 8.6 8.5 8.5 8.5

Fixed Asset Turnover 16.4 20.1 13.6 12.2 13.5 14.5 12.4






1


Annexure KECs product range power cables

Annexure KECs Order details

Products

LV : up to 1.1 kV

MV : 3.3 kV to 33 kV.

EHV: 45 kV to 132 kV

LT & HT Aerial Bunched Cables

TELECOM CABLES -PIJF Copper Cables

Optic Fiber Cables

SPECIALITY CABLES - Fire Survival Cables

Instrumentation Cables

Signaling Cables

House WiresTurnkey contracts

Total Cabling Solutions

Turnkey Installation Services

Jointing, Testing and Commissioning

Technical Services for Cable Selection

Date INR Mn Order type Country

20/01/2011 3,390 765 Kv line -PGCIL India20/01/2011 400 BOP - NMDC India

3/1/2011 9,420 Substations order Kazakhstan

3/1/2011 380 PGCIL - Substation order India

27/12/2010 3,130 765 Kv line -RRVPN India

27/12/2011 2460 Transmission Tower order (received by SAE Towers) -

27/12/2011 1,300 765 Kv Line - PGCIL India

27/12/2011 970 765 Kv Line SA

27/12/2011 970 Railway India

27/12/2011 1,350 Telecom cables order India

3/10/2010 7,350 High voltage transmission line towers Canada

3/10/2010 1,580 Transmission Line Nigeria

3/10/2010 1,350 Transmission Line - PGCIL India

3/10/2010 950 Transmission Line India

3/10/2010 1,120 Railway India

3/10/2010 1,760 LT, HT, EHV Cables order India

5/8/2010 920 400 Kv - Substation - PGCIL India

5/8/2010 620 220 kV substation Bhutan

5/8/2010 510 400 kV transmission line - Bina Power supply India

5/8/2010 450 Transmission line UAE

30/07/2010 570 Railways - civil construction, signaling, track laying and electrification India

30/07/2010 300 Railways - electrification Malaysia

8/7/2010 3,260 Transmission Line - 400 /500 Kv Georgia

8/7/2010 660 Transmission Line Zambia

8/7/2010 420 Transmission Line Philippines

8/7/2010 1,230 LT, HT, EHV Cables order India





1


Annexure Jyotis : projects under execution

Transmission Lines

Name of the Projects Expected Datesof Completion

North EastNorth/Western Interconnector-I 800kV HVDC Tangla-Kokrajhar-Barabisa section of Biswanath Chariyali-

Agra transmission line for Power Grid Corporation of India Limited, India. Total length of the line is 211 Kms.

Feb-13

Mundra-Mohindergarh Transmission Line 500kV HVDC Mundra-Mohindergarh transmission line for Adani Power

Limited, India. Total length of all the lines is 1,000 Kms.

Feb-11

Western Region Strengthening Scheme-II 400kV transmission lines project in Maharashtra and Gujarat for Reliance

Energy Limited, India. Total length of all the lines is 1,500 Kms.

Jul-11

400kV Alamathy-Sunguvarchatram Transmission Line 400 kV multi circuit transmission line from Alamathy

substation to Sunguvarchatram substation for Tamil Nadu Electricity Board, India. Total length of all the line is 49 Kms.

Apr-11

`North East-Northern/Western InterconnectorI 400kV double circuit lower Subhansiri-Biswanath Chariyali

transmission line for Power Grid Corporation of India Limited, India. Total length of the line is 170 Kms.

Oct-11

U P Power Transmission Corporation Ltd. 765kV single circuit Anpara D-Jhusi, 765kV single circuit Anpara C-Anpara

D Interconnector and shifting of 765kV single circuit Anpara B-Unnao to Anpara C for U P Power Transmission

Corporation Limited, India. Total length of the line is 202 Kms.

Feb-12

Bhutan Power Corporation Ltd. 400kV double circuit Punatsangchhu I to Sunkosh transmission line under (Package-A

& B) for Bhutan Power Corporation Limited, Bhutan. Total length of the line is 210 Kms.

Jul-14

Substations


Amargarh & Alusteng Substations at Jammu 220/132kV substations at Amargarh & Alusteng for Jammu Kashmir

Power Development Department, India.

Mar-11

Switchyard Package for Bongaigaon Thermal Power Project 400kV Switchyard Package for Bongaigaon Thermal

Power Project in Assam for National Thermal Power Corporation Limited, India.

Dec-11

Substation Package S1 for Wanpoh Substation under NRSS-XVI 400/220kV Wanpoh (New) Substation and

Extension of 400kV Kishenpur Substation under Northern Region System Strengthening Scheme-XVI for Power

Grid Corporation of India Limited, India.

Dec-12

Rural Electrification


Nashik & Pune District Rural electrification works under Infrastructure Plan (Phase-II) in Nashik and Pune Zones

for Maharashtra State Electricity Transmission Company Limited, India.

May-11

Pali, Barmer, Malkangiri, Balasore and Sarguja Districts Rural electrification works in Pali, Barmer and Sarguja

districts (Chhattisgarh) for Power Grid Corporation of India Limited, India.

Apr-11

Gumla, Simdega and Chatra Districts Rural electrification works in Jharkhand for Damodar Valley Corporation, India. 20-Mar


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Transmission Industry

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