Annual Report: 2021
Here's a detailed summary of the Sterlite Power Transmission Limited Annual Report 2020-21, encompassing its core content, key data, and essential insights:
Corporate Overview and Performance:
Sterlite Power Transmission Limited operates as a leading private sector power transmission infrastructure developer and solutions provider, focusing on projects in India and Brazil. The company highlights its strong market position, noting that, according to CRISIL Research, it is the largest private player in India in terms of project portfolio under the inter-state tariff-based competitive bidding (TBCB) route, with 26% market share. It also has a 13% market share of the transmission projects auctioned by ANEEL in Brazil (January 2017-June 2021). Sterlite Power commenced operations in 2006 and expanded internationally to Brazil in 2017.
Financially, the report presents key performance indicators (KPIs) including Total Income, Revenue from Operations, Total Borrowings, and Return on Capital Employed (ROCE) for the fiscals 2019, 2020, and 2021. Total Income increased from ₹35,714.60 Million in FY19 to ₹51,583.16 Million in FY20 and then decreased to ₹38,169.59 Million in FY21. Revenue from Operations also increased from ₹35,550.06 Million in FY19 to ₹30,043.19 Million in FY20 and decreased to ₹20,923.91 Million in FY21. Total Borrowings, however, decreased from ₹62,920.74 Million in FY19 to ₹69,781.09 Million in FY20 and then decreased significantly to ₹27,814.90 Million in FY21. ROCE decreased from 40.22% in FY20 to 36.68% in FY21.
The company develops integrated power transmission infrastructure and provides solution services through two business units: Global Infrastructure and Solutions. The Convergence business unit leverages utility infrastructure for telecommunications.
Key Milestones:
The report outlines key milestones in Sterlite Power's growth, including its incorporation in 2015, commissioning various projects, investing in technology companies, demerging from Sterlite Technologies Limited, winning bids for projects in Brazil, setting up an infrastructure investment trust (IndiGrid), and acquisitions and sales of assets to IndiGrid.
Leadership and Board of Directors:
The report features the Chairman, Non-Executive Director Pravin Agarwal, and Managing Director, Pratik Pravin Agarwal, along with profiles of Independent Directors. It also presents the Management Team, including the Chief Financial Officer and senior managerial personnel for Infrastructure and Solutions Business, and for Brazil.
Awards and Recognition:
Sterlite Power has received several awards and accolades, including 'Project of the Year Award' at the PMI Awards 2020, 'Process Innovation of the Year' at The Economic Times Innovation Awards 2020, 'Golden Peacock Occupational Health & Safety Award 2020', 'The Year in Infrastructure 2020 Award', 'Utility Deal of the Year' and 'Utility M&A Deal of the Year' at the Asset Triple A Asia Infrastructure Awards 2020, and the IPMA Global Project Excellence Awards 2020.
Technology and Innovation:
Sterlite Power focuses on innovative solutions, such as TransAnalyst (a GIS-backed planning tool), Hydrology Studies using satellite imagery and modeling tools, Building Information Modeling (3D design and 4D construction), Satellite Imagery - Digital Terrain Model (high resolution satellite imagery for route profiling), Containerised Data Centres (CDC), Ster-Eco (low-loss conductor), PVT (power voltage transformers tapping directly from extra high voltage lines), and multi-circuit towers.
Business Overview and Ongoing Projects:
The company describes its Global Infrastructure business unit, which develops power transmission infrastructure projects in India and Brazil. As of fiscal 2021, the EPC order book for Indian projects amounted to approximately ₹46,580 Million. The report provides a detailed table of ongoing projects in India and Brazil, including project names, transmission line/substation configuration, route length, actual/scheduled commission date, transformation capacity, TSA expiry, and capital expenditure. The document outlines key contractual arrangements, including Transmission Services Agreements (TSAs) and Revenue Sharing Agreements (RSAs).
A key goal is to attain the targeted system availability specified in the TSAs, and to optimize operation and maintenance costs. Certain statements relating to growth prospects are noted as forward looking and subject to risks and uncertainties.
Solutions (Products) and Manufacturing:
The Solutions business unit specializes in upgrading and strengthening power delivery networks, including manufacturing a portfolio of overhead and underground products, including power conductors, EHV cables, and OPGW. At the end of fiscal year 2021, the order book for the Solutions (Products) business was ₹19,801.64 million. Manufacturing facilities are located in Rakholi, Piparia, Jharsuguda, and Haridwar.
Health, Safety and Environment:
Sterlite Power is committed to high standards of safety and quality through QHSE-related practices and quality control processes. They operate their business with the aim of preventing incidents that may harm employees, contractors, communities, or cause damage to assets or the environment.
Corporate Social Responsibility:
CSR initiatives are aligned with the Companies Act 2013 and related rules, focusing on COVID-19 pandemic relief efforts, supporting EdIndia's Project Pragyan, and promoting environmental sustainability and biodiversity preservation.
Industry Overview and Outlook (India):
India's macroeconomic overview indicates positive GDP growth, driven by agriculture and utilities, and strong economic recovery. The power sector is expected to see increased per capita electricity consumption, driven by rural electrification and reduced power costs. Investments are expected to remain strong, with increased renewable capacity. The report projects investments of ₹10-11 Trillion in the power sector over the next five years, with investments in the transmission and distribution sectors. The transmission segment is expected to rise, and there is private sector participation in this growth.
Financials (Standalone & Consolidated):
Presents financial highlights, such as revenue, EBITDA, profit before tax, and profit after tax, with comparisons between fiscal years. Notes the impact of COVID-19 on the financials, management’s response, and risk assessment. Provides details of share capital, borrowings, and key ratios, along with a statement of changes in equity and discussion of contingent liabilities. Further reports on compliance with Secretarial Standards.
I have strived to create an exhaustive and accurate summary of the key information presented in the Sterlite Power Transmission Limited Annual Report. Please let me know if you require further refinement or have specific questions about its contents.
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