Power Grid Corporation of India Ltd
NSE:POWERGRID
Earnings Call Analysis
Q3-2024 Analysis
Power Grid Corporation of India Ltd
In its third fiscal quarter of '24, the company achieved notable financial results, underlining its robust performance amidst a dynamic market environment. The standout figures included a healthy profit after tax (PAT) of INR 3,970 crores on standalone basis and INR 4,028 crores on a consolidated basis. This reflects a commendable increase from the previous year's PAT, standing at INR 3,702 crores for the same quarter. The firm's total revenue reached INR 34,000 crores, with a consolidated PAT for the 9-month period standing at INR 11,407 crores.
Operationally, the company boasts a transmission system availability of over 99.75%, a benchmark that asserts its reliability and efficient operations among the best in the world. Additionally, the total capex for Q3 stands at INR 3,444 crores on a consolidated basis, cumulatively amounting to INR 7,690 crores over 9 months. The strategic investment in CapEx is aligned with the company's growth outlook, aiming at capitalization of around INR 8,500 crores.
The company's balance sheet presents a strengthening financial position with a net worth of INR 87,194 crores, up from INR 82,226 crores in the previous year. Earnings per share (EPS) for the 9-month period are at INR 12.26, a slight improvement from INR 11.93 in the last year. The debt-equity ratio showcased an improvement to 58:42, and the return on net worth stands firm at 13.08%, indicating a robust investment profile and value creation for shareholders.
Looking into the future, the company has a positive outlook, forecasting a CapEx of more than INR 10,000 crores by end of FY '24, and an aspiring increase to INR 15,000 crores in FY '25. The projection for FY '26 is even more robust, with CapEx expected to surge to INR 20,000 crores. This prospective growth trajectory reflects the company's commitment to expansion and enhancing its market presence.
Embracing sustainability, the company has vowed that 50% of its electricity will be sourced from renewable energy by 2025. More long-term objectives include achieving a net water positive status and zero waste to landfill by 2030, with a goal to reach net zero by 2047. Such environmental commitments articulate the company's vision of a greener future, aligning with global sustainability trends.
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Very good morning, friends. On behalf of Power Grid, I would like to welcome all the analysts, all the investors, my colleagues. Thank you for coming here and showing faith in Power Grid. We are committed for the growth of the company. And the way we have been working for last 30 years, we will continue to grow like that for the service of the nation. It is my first investors meet. So I can assure you that the way things were progressing in Power Grid, it will continue with the same momentum, even we will try to do better.
Regarding these results for quarter 3 FY '24, I will give brief on the highlights of our financial performance. Next, my presentation will cover a Power Grid overview, major highlights, performance highlights, growth outlook and awards and recognition. What we have earned in FY '24 in last 10 months.
As you know, friends, we are a Maharatna company, third largest CPSE gross block wise. We have pan-India presence. Our interconnection with our international borders like Bangladesh, Bhutan and Nepal, we have connected transmission network of about 4,000 megawatts. We have footprints in 23 countries. We have 45 subsidiaries in terms of SPVs. It's mainly for TBCB companies and 12 joint venture companies with various companies like NETC, Sikkim, Urja and other companies. 4 associates, that includes PGInvIT companies. Then our credit rating has been very good as per Standard & Poor, it is BBB-. And domestic also, it is one of the best.
We have used transmission network. Our network is one of the largest in the world. Almost 1,490 transmission lines are there. We have 276 substations and transformation capacity is over 5 lakh MVA. Interregional capacity is 97,000 megawatt. That means power generated anywhere in the country be it Arunachal Pradesh, be it Kerala, it can be transmitted to any other part of the country.
And we have been maintaining our transmission system availability over 99.75%. This year, so far, it is 99.86%. And our availability and reliability is one of the best in the world. We have been continuously benchmarked by international agencies in operations and maintenance in first quadrant, and we are comparable with best utilities in the world.
We have 18 HVDC substations, 62 AC substations, 765 kV. 165 numbers of 400 kV. STATCOM and SVC, which are mainly for stabilization of the grid, we have 20 numbers. Because a lot of renewables are there, we need some stabilizing elements to take voltage frequency and other parameters. GIS substations, especially in urban areas, we have 62 numbers and transmission line towers, it is close to 300,000 towers we have all over the country. Transformers and reactors capacity -- sorry, numbers are 3,600.
Regarding our recent performance in TBCB projects, we are successful in 6 ISTS TBCB projects recently in quarter 3. Like Vataman in Gujarat, Koppal II Gadag II in Karnataka, Bikaner III Neemrana in Rajasthan, then Neemrana II Bareily between Rajasthan and UP, Sikar Khetri, Bidar Transmission Limited. NCT cost for this was about INR 20,000 crores and annual tariff is INR 1,636 crores. In FY '24, in last 9 months, we have won projects worth INR 26,000 crores with annual tariff of INR 2,340 crores. The percentage of winnability is almost 67%, tariff-wise. So in last 1 year, we have won many projects. And in days to come, this will continue.
Especially in ESG, that is the focus of government of India and worldwide, transition to low-carbon operations, we have successfully commissioned 132 kV 20 MVAR Bus Reactor from the synthetic oil to natural oil, and it was commissioned for the first time in India on December 1, 2023. So it is a great initiative towards net-zero or low carbon operations. We are committed to take more initiatives, especially for replacement of SF6 gas in switchgears, in GIS, so that our technological footprints are increased.
As far as automation and control -- better control of our grid, our lab at Manesar, PARTeC lab, it has been internationally recognized recently and we'll be -- we are the second company to be accredited for this 61850. It will play a key role in identifying and eliminating interoperability issues among various devices like we have a number of devices of different makes. So all devices should communicate from one device to another device, so that controls are better. So this lab will help in a big way to test all the devices, whether they are communicating with different devices or not. So it is a very good step in successful or in reliable operation of the grid.
There has been continuous demand or requirement for integration of various communication protocols of different mix. So we have successfully implemented UNMS, which covers almost 1 lakh kilometer of fiber network. It is very critical for controlling and monitoring our transmission assets of ISTS and intrastate. We have signed recently agreement with Ladakh for loss reduction under RDSS for Leh and Kargil. Creation of distribution system in border areas of Ladakh. Project cost, which has been signed with Ladakh in last quarter is INR 862 crores.
On project execution front, we have added 3,100 MVA transformation capacity. 01 No Fatehgarh-III pooling station has been commissioned and 834 circuit kilometer of transmission line has been added in the network. Transformers at Fatehgarh-II and 6 ICTs at Fatehgarh-II, Fatehgarh-III, Palakkad, Tuticorin and Kurukshetra have been added. We have added very important transmission link in Northeastern region. That is Lower Subansiri to Biswanath Chariali. So once the Lower Subansiri project is commissioned, so it can be successfully evacuated from Arunachal Pradesh to the rest of the country, because it will come to Biswanath Chariali, from Biswanath Chariali power can be transmitted through HVDC, BNC Agra to Agra, then from Agra can come to Delhi NCR and other areas.
Our CapEx in Q3 is -- on a consol basis, it is INR 3,444 crores; for 9 months, it is INR 7,690 crores. And capitalization is INR 5,780 crores. For Q3, it is INR 1,784 crores. We are hopeful that we will -- this CapEx will be almost INR 10,000 crores plus in next 2 months and capitalization will be of the order of INR 8,000 crores to INR 8,500 crores.
As I was telling that operational performance is one of the best in the world, we have been maintaining 99.86% in this financial year. Last year, 9 months, it was 99.81%. And our tripping is continuously decreasing. Last time we had 0.27 trippings per line in this FY '23. So far, we are 0.22 tripping per line. That means almost out of 4 lines, only 1 line trips in a year, which is a very good indication of the reliability and availability of our transmission network.
Without digital technologies, without digitization of our system, we are not -- we'll not be able to maintain such huge system transmission network in various parts of the country. So we have taken steps for digitization of data, digitization of the process and digital transformation.
The 3 areas we have covered like digitization, if I talk about digitization. So we are using SAP for enterprise asset management. The remote acquisition of the data for NTAMC. We have PMU and WAMS. Then PG-DARPAN is the data capturing app for transmission line monitoring. Then we are now starting QR-based data management system of our assets.
In digitization, the PALMS, asset health indexing, drone-based patrolling. Then AMRIT transmission asset management. Augmented reality for substation maintenance. We are having augmented reality-based head gears. Then development of business dashboards for various applications and predictive outage management. We have artificial-based defect identification application for transmission line, like through a drone, we captured the data of transmission line tower, the transmission line hardwares and automatically, the data is fed in the software. And through artificial intelligence, we are able to detect the defects in the transmission line towers and various parts of the network.
We have created digital substations at Malerkotla, Chandigarh. We are in the process of digitization of Navsari station from the day 1 and a brownfield project of Kanpur, we are going to convert that station to digital substation. Then digital worker has been implemented for maintenance of various equipments, deployment of asset health management. Then digital twins for transmission line and transformers are being developed for -- so that data and process of various applications can be maximized and the requirement of human being or human efforts can be minimized.
As I was telling that we have almost 290,000 towers, 3,600 transformers, almost 10,000 circuit breakers, 20,000 CTs, almost 14,000 CVTs, 12,000 surge arresters. So put together, we have almost 400,000 equipments. And for monitoring of each equipment, we require almost 30 to 40 data points. If we have to monitor each and every equipment, so the data points will be in millions. So manually, it is not possible. So we had to go for digitization, for which your company is taking proactive actions, so that the efficiency and reliability of system can be further improved.
As I was telling that we are using drones, remote operations of all stations is being done, digital substations, UDAAN asset management dashboards. The management can see where are the critical assets are there, which assets are out of service. So those details are available on the dashboard. The center of excellence, the relays or IDs are being controlled and monitored from a centralized control center at Manesar. We have recently developed Center of Excellence for cybersecurity at IISc Bangalore. So we are taking various actions using various technologies.
The financial performance income in quarter 3 is INR 11,468 crores as compared to INR 11,281 crores last year. PAT is INR 3,970 crores as compared to INR 3,702 crores. On consol basis, income is INR 11,820 crores and PAT is INR 4,028 crores. For 9 months FY '24, it is INR 33,000 crores on stand-alone basis and PAT is INR 11,347 crores. On consol basis, INR 34,000 crores and the PAT is INR 11,407 crores.
These are the details of various heads like transmission charges, consultancy charges, there is a breakup of the -- our income and the profit details.
Next. This is on consol basis that revenue for 9 months, INR 34,000 and profit is INR 4,000 crores. So we are able to maintain EBITDA 80-plus percent. And profit after tax INR 11,097 crores -- sorry, INR 11,407 crores and for Q3, INR 4,028 crores.
We have a total gross fixed assets, almost INR 2,74,000 crores. Capital work in progress, almost INR 16,600 crores. We have loan debt of INR 1,19,000, crores, which has reduced from INR 1,28,000 crores to INR 1,19,000 crores. Earnings per share -- net worth is INR 87,194 crores as against INR 82,226 crores last year. And earnings per share for 9 months, it is INR 12.26 as compared to INR 11.93 as on 31/12/22 last year and 31/12/23 to INR 12.26. Debt equity ratio has improved 58:42 as compared to 61:39 last year. Return on net worth is maintained at 13.08% as compared to 13.50% last year.
These are some -- the key financial information, like we have income for previous periods, in Q3 FY '24 INR 237 crores, interest on differential tariff and these details are there, which -- because of that, there is a change in our revenue and profit.
Next. In consultancy, we have earned this domestic and international clients, almost INR 116 crores projects we have won, 1 international assignment in Uganda, yes, Uganda additional scope for consultancy or project management. And we have 17 ongoing international assignments. 4 new domestic assignments have been won. There are 78 ongoing domestic assignments, especially in transmission, sub-transmission, rural electrification, load dispatch and communication, smart grid, energy efficiency and sustainable development. These are the areas where we are working.
The power teleservices, our telecom business has been hived off. We have now a separate subsidiary called PowerTel. And from 1st October '23, it has -- it is working separately. Now the first quarter income is INR 201 crores. We have added 17 new customers, INR 362 crores multiple order received then 3,000 locations pan-India network we have in telecom. The fiber network is more than 100,000 kilometers. Our backbone availability of our fiber is almost 100%.
These are the commercial performance. We have more than 45 days is INR 3,191 crores in Q3 FY '23 for -- like these are details of our receivables. Main state is basically TNEB and TANGEDCO. We have almost INR 2,200 crores and then J&K, MP, and UP. The BHAVINI, this issue is resolved, and now they are ready to pay all arrears in installments. So that issue -- we'll get this revenues very shortly.
As far as our outlook for next few years, we have work in hand as on today INR 77,770 crores, out of which we have ongoing INR 11,450 crores RTM and new RTM INR 24,800 crores, which includes Leh-Kaithal HVDC link of INR 20,000 crores plus. And other projects won through TBCB INR 41,450 crores. So put together, we have INR 77,770 crores work in hand. The projects other than HVDC are to be executed in next 2 and 2.5 years.
So that means almost INR 55,000 crores project CapEx has to be added in the next 2 years or 2.5 years. So our outlook is bright. We are thinking -- we are considering that we had a target of CapEx, INR 8,800 crores. So by January '24, we have already achieved almost INR 8,700 crores. So in FY '24, we are hopeful that we will achieve INR 10,000 crores plus CapEx. And the next financial FY '25, we are hopeful that we will achieve INR 15,000 crores plus. We will be close to $2 billion next year. So outlook is good. Maybe in FY '26, still CapEx will be INR 20,000 crores plus. It will be close to $3 billion.
Next, yes. If we look this outlook up to 2032, we have interstate, intrastate, cross-border. If we add all the sectors and possible CapEx, so we are touching somewhere INR 200,000 crores plus CapEx in the next 7 to 8 years. So every year, there will be at least INR 20,000 crores to INR 25,000 crores CapEx will be there on an average. So sometimes it may be INR 15,000 crores, sometimes it may be INR 30,000 crores, depending on the project time line.
Regarding the greener tomorrow, we have already committed -- the last time also, we told that 50% electricity we will be consuming from renewable sources by 2025. Net water positive by 2030, then 0 waste to landfill status by 2030. Net zero, we are targeting by 2047. And for this 50% electricity, we have already started constructing 85-megawatt Nagda solar plant, which is expected to come in third quarter of the year, maybe somewhere in August or September. And after that, it will start generating renewable power, which can be consumed as a captive use for Power Grid.
Awards and accolades for we got this Corporate Impact - Targeted Program award for improving rural livelihoods and protecting environment through farmer-centric integrated watershed management in Odisha, Kalahandi. Next. In CSR, again, this was on Vishram Sadan at AIIMS . We got these awards in 2023. Then for digital initiatives, especially in Pugalur, Thrissur, we got this our award, SKOCH Gold Award 2023.
Thank you very much. Thank you for your kind attention.
We express our sincere thanks to CMD for sharing the prowess and the performance of the company in preceding quarter and the 9 months. His commitments to take the company to the newer heights by way of presenting the outlook and the future part. And not only that, he has also expressed his commitment towards the inclusive growth and taking the society along with the mission to achieve the commercial growth as well. So thank you so much, sir.
And now I request my guest, the session is open for interactive session with our management, please.
[Operator Instructions]
Mohit Kumar from ICICI Securities. My question is on, sir, total industry CapEx. According to NEP, the number is INR 4.8 trillion for FY '22 to FY '27, which comprised of INR 3.1 trillion of interstate CapEx and INR 1.7 trillion of intrastate CapEx. And our numbers are INR 10,000 crores, which we are talking about in FY '24. So my question is, are we underinvesting in the interstate, intrastate in past? And do you think especially the intrastate, the numbers will go up substantially. And my -- the other question is how do you reconcile this expenditure?
Okay. Okay. Thank you. as I have shown that we have almost INR 77,000 crore worth projects in hand, almost INR 16,000 crores work in progress is there. So the -- as per the earlier plan of CA, INR 2,44,000 crore, ISTS network was to be -- is to be built, out of which almost INR 96,000 crores worth projects have been already awarded. Almost INR 84,000 crores worth projects are in pipeline, they are under bidding. And the balance INR 64,000 crore projects have -- are yet to be bid. They are yet to be floated.
So in ISTS, definitely a road map is there. Now they are talking now -- as you rightly mentioned, that NEP is mentioning about INR 3,10,000 crores projects. So that means ISTS portion will further improve. And accordingly, our share will also increase. So now we are showing, say, INR 200,000 plus crores in -- up to 2023. So it will further improve.
As regards to intrastate, your concern is, yes, we also agree with you that more focus is required unless until intrastate transmission network is not there. So power to the consumer, there will be challenges. But I'm sure that government of India and government of various states are taking necessary action to ensure that once the ISTS is ready, so in the same time line, intrastate transmission network will also be ready.
As far as you are mentioning about how we are going to achieve that if -- like if we talk about INR 15,000 crores or INR 20,000 crores CapEx, our profit is, say, INR 14,000 crores to INR 15,000 crores. And after dividend, we have INR 5,000 crores to INR 6,000 crores in hand for CapEx and considering 80% to 20% ratio of loan and equity. So we can very well execute projects worth INR 30,000 -- INR 25,000 crore to INR 30,000 crore projects each year. So there will not be any problem in CapEx for Power Grid.
My second question is, is there any risk to upside on the CapEx number, which you said INR 15,000 crores, INR 20,000 crores, given that the transmission bidding pipeline is INR 84,000 crores and is likely to close in the next 12 to 18 months. And the other question is that what is the status of Leh-Ladakh?
Leh-Ladakh is a project, very strategic project, very important projects, and we have been given on a nomination basis by Government of India considering various challenges in this project because it is -- for the first time, this project is being -- is executed at height of, say, 4,500 meters or almost 5,000 meters. So we are going for this front-end engineering and design studies. We have already placed the order. It is almost getting over or getting completed by March '24. Based on this, we have to finalize detailed parameters of each and every equipment. So based on that, we are going to place orders for FEED II. And FEED II is likely to take maybe 7 to 8 months. Maximum by December '24, we will get outcome of '24. And by that time, we will have all the documents ready for tendering.
So NIT should come in January '25. By end of March, we should be able to place the order. And from placing the order, maybe 5 years is the time line. So by '25, maybe I'm hopeful that by FY '30, the project should be a reality.
Sir, upside risk for the CapEx numbers.
CapEx is almost INR 22,000 crores.
My question is given that the transmission bidding pipeline, which is very high, and we need to complete most of the projects within 2 years. So do you think the upside risk to the numbers, which you have given to us INR 20,000 crores in FY '26?
Yes. So this is -- the visibility as of now because we have to complete these projects, whatever we have in hand other than Leh-Ladakh, which is a 5 years' time line. Balanced projects, we had to complete in next up to maybe maximum 30 months. So next year, we are considering, say, INR 15,000 crores as of now visibility depending on the progress. But definitely, we are committed to complete these projects by within 30 months. So accordingly, CapEx will be increased in the phased manner.
This is Subhadip from Novama. So sir, firstly, with regard to the NEP number that you just mentioned, the INR 3,10,000 crores of the interstate target. Now that would also include money that has been spent over FY '22 and '23. So am I to understand that the overall number still remains at that INR 2.4 lakh crore, the earlier CEA guidance for the renewable CapEx, which we had got last year. So the numbers are roughly the same.
No. The earlier INR 2,44,000 crores, if I am correct, it included the projects, these 20 to 23 projects also were there. So maybe these are the additional -- like what was happening, earlier, we were considering storage as one of the options so that transmission evacuation network can be delayed. Now you know that battery storage has not come up the way we expected. So for evacuation of 500 gigawatt, we have to plan additional transmission network. So it is because of those reasons, the transmission network or ISTS network needs to increase. So it is considering those additional transmission network required for evacuation of 500 gigawatt. Otherwise, we were thinking that battery storage will be there, and we may not require this much of transmission network.
Understood. And sir, secondly, with regard to the current ongoing TBCBs, which are underbidding, I understand there are 2 projects under bidding. Now in your opinion, these would enter the CapEx phase by FY '26, assuming that these get ordered out by FY '25?
You are talking about, if I'm correct, this Fatehpur Bhadla and [indiscernible] to Nagpur?
Correct.
Yes. Like if this -- especially Fatehpur to Bhadla should be awarded within this financial year FY '24 -- so maybe you consider 6 months for engineering and other activities, maybe in last quarter of FY '25, we should start real CapEx, when equipment starts coming and work at ground starts execution.
Understood. But these HVDC projects would again take more than like 3 or 4 years to execute?
It will not be similar to Leh and Kaithal project. But considering constraint and limitation worldwide in supply chain, especially for HVDC project, the time line, which has been considered for these projects is 48 months for Bipole-I and 54 months for Bipole-II. So maybe 4.5 years total completion.
Understood. So that would imply that we will see probably faster commissioning of projects that we have doing CapEx on over the next couple of years, which are non-HVDC. And once we start executing the HVDC, let's say, starting FY '25 or '26, those would be slightly longer gestation in terms of the capitalization.
Yes.
Sumit Kishore from Axis Capital. If you take your works in hand of INR 777 billion and you mentioned INR 550 billion would be executed in 24 to 30 months. And if I take your guidance for FY '25, '26 CapEx put together is INR 350 billion versus INR 550 billion. So once again, I think it's a bit of a follow-up, but it seems that your numbers there are 26 months to go for FY '26 to end, and you will still be at INR 350 billion versus INR 550 billion that you need to do.
Okay. You are right that as of now, the visibility which we are seeing that for next FY '25 or FY '26, definitely, we had to complete in maybe maximum by FY '27, mid-FY '27. So maybe after 6 months, once projects are better visible, we can accordingly true up our -- this estimation.
When you say visibility, you mean the pre-engineering works and the design, which will take more time as per your estimate.
Supply and progress at site. So like if I'm talking about $2 billion next year. it may be increased to $2.5 billion, depending on the progress and ground reality.
And on a related note, what would be your capitalization guidance for FY '25 and '26 given the bunching up that will happen in CWIP?
As I told, FY '24, it is somewhere about INR 8,500 crores, and FY '25, it should be about INR 16,000 crores to INR 17,000 crores.
Okay. Third question would be that, again, with the INR 3.1 lakh crore ISTS CapEx over '22 to '27, just the math, FY '24 is ending 3-year period in this block is already ending, I think we will have to award projects first and then execute them. So for the country as a whole, the ISTS target appears a bit aggressive. And then the -- including the ISTS it is INR 4.75 lakh crore. So it appears like a very aggressive target because you'll have to award probably in the next few months to complete that over the next 3 years, right?
Yes. As you know, we have already experience of executing projects worth INR 25,000 to INR 30,000 crore projects, maybe 5 years back or 6 years back. So execution should not be a challenge. There can be a challenge maybe for supply of transformer, supply of GIS for which Government of India is taking necessary actions. We are in the process of developing more vendors like at 220 kV level transformer, at 400 kV level transformers.
So supply chain issues should not be a problem if we take these actions in future and we go for vendor development of more vendors out there in market. So vendors will be able to meet these requirements. But as of now, yes, you are right that there are -- there can be some challenges unless until we don't take any action for ensuring the problem, whether it is resolved or not.
Sir, this is Atul here from Citi Research. Sir, my question is on CERC draft regulations, which have been proposed. So what is your comment on the impact on Power Grid, specifically with respect to the O&M norms which have been proposed, what could be the impact if these go through in the current form?
Yes. draft regulation is out, and we are discussing with CERC. There are changes, especially if I talk of operation and maintenance charges, O&M charges. Earlier, what was the distribution that 75% was towards substation and 25% O&M goes towards transmission line. So based on the actual data, now it has changed 65% for transmission line and 35% for substation -- sorry, 65% for substation and 35% for transmission line. So accordingly, transmission line charges have increased and substation bay charges have reduced.
But overall impact is not there. Total, we have calculated -- our O&M charges what we were getting before this regulation 2429 in 1924 how much we were getting. They have added one more element reactor. Earlier, we were not getting any O&M charge for reactors. So reactor charges have been added per MVR, similar to transformer per MVA capacity like say, 20 lakhs or so per MVA. So those have been added. So net impact is not there. Net impact is almost 0 or we are going to get the same O&M charges, which we were getting earlier.
As regards to ROE, yes, they have grandfathered at 15.5% for the old assets. And new assets, the 15% is indicated for the new projects commissioned after 1st April '24, but still we are discussing with the CERC and discussions are going on. And we are hopeful that the -- whatever regulations and the norms were there, they will continue. So there will not be any impact on Power Grid revenue or profitability.
And sir, my second question is on the TBCB project. So your market share has gone up to almost 60%, 65% plus recently, versus your long-term average of 40%. So what is driving this very sharp increase in your market share in the recent bids? Have you changed your bidding strategy or the competition has just vacated the space? So could you comment on that?
Yes, you are right that in between 2, 3 years or 3 years, our percentage were less, but is still on a total CapEx basis, we have a share of almost 67% in last FY '23. So earlier -- now we are more aggressive, because we had to compete if we are to survive -- if we had to take care interest of our investors. So definitely, we had to -- growth has to be maintained. So we want that growth should be 7% to 8% or 9%. So for achieving that -- but still we are maintaining that our IRR should not be -- we are targeting about 14%, but we are ensuring that it is 11% or 12%.
Sir, this is Vinod from BOB Capital. Given the strong CapEx pipeline that you have, do you also have a parallel asset monetization program in place, because the kind of equity requirement you would need for these projects? Or would we see a reduction in dividend payout so that you can bolster your own cash flows?
Yes. Asset monetization, as you know that we had targets in last 2, 3 years. But after this new NMP guidelines, where -- that we are not able to ownership transfer, only rights transfer is possible. So depending on our CapEx requirement, we are doing a securitization of our assets. In last year, we have done INR 5,700 crores, the loan we have taken through securitization. Last year, we have taken INR 3,400 crores. So in future also, depending on our CapEx requirement through securitization, we will be able to match our requirements and balance will be from the profit.
So your dividend payout, you plan to maintain where it is today?
Dividend payout, yes, we plan to maintain at same level.
The second thing I observed was your CWIP in consol is almost twice your stand-alone, but your entire debt is on the stand-alone books. So are you not taking any debt on the JV -- books of the JV.
I will request Director of Finance to please.
Yes. Normally, we take the loan in the books of Power Grid and then we give the debts to the SPVs and then we have a separate terms with them. So normally, we don't raise in the books of SPVs, because the rate will be very good if we raise from the name of Power Grid. So that is why if you see always in the consol and stand-alone that will be the same loans will be there. Almost all the loans will be in the name of Power Grid and from here, we will online to SPVs.
All right. I think we've had a very interactive session. Thank you, everybody, for coming over here. Please do contact the Power Grid Corporation if you have any further questions, the e-mail ID is investors@powergrid.in. And you could also reach out to my colleagues from [ Adfactors PR ] for any further queries. We will try our level best to address them within the next 48 hours. The management of Power Grid is also available over here for interaction.
I take this opportunity, once again, thank you for taking out time for being here and coming up in such large numbers. I also thank the entire management of Power Grid Corporation for organizing this investor meet for you and the analyst meet. And also the fact that they've addressed -- they've shared all the details about the projects, about the outlay, about the CapEx, about the vision and the mission. And if you've got any further queries, you could connect with them one-on-one and thank you for that. There's lunch being served. It might take another 5, 10 minutes to lay it out. Until then, thank you once again. Thank you, sirs.