The rise in power demand, coupled with state-electricity regulators revising power tariffs, is seen to have raised the revenue earned by power generating companies (gencos) in Q3, FY19.
Research firm Crisil expects generation revenue to rise 6-7% year-on-year in the quarter on the back of “increase in tariff supported by increased demand”. In Q2, FY19, revenue of gencos rose by about 10% annually to nearly Rs 48,000 crore.
Peak power demand of the country breached the 180 giga watt (GW) mark in October, 2018, 9.8% higher than the highest requirement recorded in FY18.
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Ebitda margins for power companies are seen to be around 35.7% in Q3,FY19—the highest estimate among key sectors like FMCG, IT services, pharmaceuticals and steel products. Aggregate margins across generation, transmission and distribution are expected to increase by about 150-160 basis points, “mainly driven by resolution of fuel supply issues, fall in costs for certain large independent power producers in generation and tariff hikes in the distribution segment,” the research agency said.