Annual Report: 2024
Addressing the Challenges of Clean Energy Delivery: Empowering Humanity Towards a Sustainable Future
Introduction & Background: The Sterlite Power 2023-2024 Annual Report addresses the critical role of power transmission in India's transition to renewable energy and its ambitious goals of achieving Net Zero by 2070 and installing 500 GW of renewable energy by 2030. It highlights the urgent need for reliable financing and strategic partnerships to support these ambitions. The existing power grid infrastructure is insufficient to accommodate the rapidly growing capacity of renewable energy generation, posing a significant obstacle to the efficient delivery of green energy. Traditional grid systems were not designed for the intermittent and unpredictable nature of renewable sources like wind and solar, lacking necessary storage and advanced monitoring technologies.
Business Overview & Key Findings: Sterlite Power at a Glance is a leading private sector power transmission infrastructure developer with 33 completed, sold, and under construction projects covering 16,529 circuit kms. The company's India portfolio has about USD 2 billion worth of projects. The company is increasing its focus on integrating renewable energy. Key Performance Indicators (KPIs) show trends in Total Income, EBITDA, PAT, and Circuit KM. Total income for FY24 was 4955 (in crores), EBITDA was 507 (in crores), and PAT was 230 (in crores). Circuit KM reached 16529 (cumulative). India's transmission pipeline is at an all-time high with a record USD 13 billion of projects up for bidding, which Sterlite Power is targeting through a joint venture with GIC, where Sterlite Power owns 51%. The strategic decision to demerge Power Transmission Infrastructure business (BOT model) will create pure-play business verticals based on their end-customer base, investor class, and returns. The demand for Power Products remains strong. Order wins reached INR 7,000 crores in FY24, a 35% YoY increase.
Chairman's Message & MD's Message: The Chairman's Message expresses a commitment to the transformative power of electricity access and underscores the company's pivotal role in addressing clean energy delivery challenges. The Managing Director's Message emphasizes the transition from fossil fuels to renewable sources, noting that 83% of new power capacity added in 2023 came from renewable sources. India is aiming for a 500 GW renewable energy target by 2030, a dramatic shift from coal-fueled growth.
Strategic Imperatives & Expansion: Sterlite Power successfully ventured into Rajasthan with two Green Energy Corridor (GEC) projects, involving construction of a ~950 km long transmission corridor instrumental in evacuating a portion of 20 GW of renewable energy. The company also acquired Neemrana II Kotputli Transmission Limited. Over the past six years of operations in Brazil, Sterlite Power invested over R$ 3.5 billion in infrastructure. Sterlite Power's portfolio includes 33 projects, spanning 16,529 circuit km of transmission lines. Social Impact focuses on delivering innovative solutions for people at large and providing cables and conductors needed to move electricity. Sterlite Power also expanded into Rajasthan with Green Energy Corridor projects, aiming to evacuate 20 GW of renewable energy. The Mumbai Urja Marg project (MUML) is nearing completion, evacuating 2000 MW of additional power. The Global Products and Services business exports to 70+ countries, aligning with India's Aatma-Nirbhar Bharat initiative.
Technology & Operational Efficiency: The report stresses Technology Leadership through revolutionary solutions, including aerial technology, big data algorithms, and artificial intelligence. Digitalization of operations is highlighted, such as Magellan, an in-house platform to automate power transmission processes. The report also emphasized Robotics for Safe Stringing and Technology Intensive Products.
Quality, Safety, & Social Responsibility: Quality Excellence is a core value, measured through the Quality Health Index (QHI), with a vision of "Zero Harm" and "First Time Right". The company maintains high HSE Standards. The company is committed to Safety First, aiming for safe and healthy working conditions. Sterlite EdIndia Foundation works towards "quality education," contributing to SDG 4. The company had an exceptional year with numerous prestigious global and national accolades recognising their outstanding achievements. The Company is recognized by the Great Place to Work® India, for its commitment to talent and growth.
Financial Performance Analysis & Future Outlook: A summary of the Standalone and Consolidated Financial Parameters outlines the company's financial performance. The company emphasized key events of the financial year FY'2024.
Financial Performance Metrics: Sterlite Power reported the following financials pertaining to continuing operations: a revenue from operations of 49,056.41 million; EBITDA of 4,918.56 million; profit before tax of 2,968.59 million; and profit for the year of 2,178.49 million (Indian Rupees). The Company has taken significant steps toward shaping the future of energy delivery and is confident that its collective efforts will continue to light the way for a brighter, greener, more connected, and empowered world. The financial statement further includes the list of reports by Auditors.
Actionable Insights & Recommendations: India needs to continue to develop its transmission network to deliver renewable energy and meet growing electricity demand, with a strategic demerger of its Power Transmission Infrastructure business to create business verticals and increase efficiency. The company will continue to advance in infrastructure evacuation and use of clean energy in India, seeking innovative solutions to minimize project impacts on communities, leveraging our knowledge and expertise to deliver challenging projects.
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