Gita Renewable Energy Ltd Management Discussions

ECONOMIC REVIEW

Global Economy

About $7 trillion was spent on subsidizing the fossil fuel industry in 2022, including through explicit subsidies, tax breaks, and health and environmental damages that were not priced into the cost of fossil fuels.

In comparison, about $4.5 trillion a year needs to be invested in renewable energy until 2030 - including investments in technology and infrastructure - to allow us to reach net-zero emissions by 2050.

The upfront cost can be daunting for many countries with limited resources, and many will need financial and technical support to make the transition. But investments in renewable energy will pay off. The reduction of pollution and climate impacts alone could save the world up to $4.2 trillion per year by 2030.

Moreover, efficient, reliable renewable technologies can create a system less prone to market shocks and improve resilience and energy security by diversifying power supply options.

Indian Economy

Indias renewable energy sector is expected to grow significantly in the coming years, with the countrys renewable energy market projected to reach $46.7 billion by 2032. Indias renewable energy capacity has increased by 128% since 2014, and the country is the worlds third largest producer of renewable energy. Indias renewable energy goals include:

2030

India committed to producing 50% of its electricity from non-fossil fuel sources by 2030. The countrys energy mix is expected to increase from 19% renewable energy in 2016 to 39% in 2030.

2040

India expects to generate 49% of its electricity from renewable energy by 2040, with more efficient batteries reducing solar energy costs by 66%.

Indias renewable energy sector is expected to attract $80 billion in investment over the next four years. The country is also taking steps to promote the use of renewable energy, including:

Vertical axis wind turbines

These turbines can be integrated into urban infrastructure like buildings and bridges, and are better suited to turbulent urban wind patterns than traditional wind turbines. They also reduce noise pollution and visual impact, making them more acceptable in densely populated areas. Solar-powered EV batteries

These batteries can reduce emissions by 12-25% in different scenarios. Deploying 16 million EVs could also save $2.1 million per vehicle in health costs from reduced on-road emissions.

Outlook

Despite the challenges, India is gaining power in the world order and is on track to become the worlds third largest economy by 2027, surpassing Japan and Germany, and have the third largest stock market by 2030, thanks to global trends and key investments the country has made in technology and energy. Indias GDP is likely to more than double from US$ 3.5 trillion today to surpass US$ 7.5 trillion by 2031. A Morgan Stanley report predicts that India will be one of the only three economies in the world that can generate more than US$ 400 billion annual economic output growth from 2023 onwards, and this will rise to more than US$ 500 billion after 2028.

INDUSTRY OVERVIEW

Global Renewable Energy Industry

Amid the major changes taking place, a new energy security paradigm is needed to ensure reliability and affordability while reducing emissions. The declining fossil fuel and expanding clean energy systems co-exist, since both systems are required to function well during energy transitions in order to deliver the energy services needed by consumers. And as the world moves on from todays energy crisis, it needs to avoid new vulnerabilities arising from high and volatile critical mineral prices or highly concentrated clean energy supply chains.

The environmental case for clean energy needed no reinforcement, but the economic arguments in favour of cost-competitive and affordable clean technologies are now stronger and so is the energy security case. Todays alignment of economic, climate and security priorities has already started to move the dial towards a better outcome for the worlds people and for the planet.

India Renewable Energy Market

In 2024-25, Indias renewable energy market experienced significant growth, adding a record 18.48 GW of capacity, a 21% increase from the previous year. This brought the total installed renewable energy capacity to approximately 190 GW, including large hydropower projects. However, India still needs to add around 50 GW annually to meet its ambitious goal of 500 GW by 2030 (Business News) (S&P Global).

Solar energy led this expansion, with installations reaching 85.47 GW by mid-2024, making India the fifth-largest solar power producer globally. Wind energy also contributed substantially, with a total capacity of 46 GW (Outlook Business).

Despite these achievements, the renewable sector faces challenges such as project delays due to supply chain issues and financing difficulties for large-scale projects like offshore wind (S&P Global). Nevertheless, Indias commitment to clean energy continues to drive its transition, with the government increasing its budget and focusing on developing new technologies like green hydrogen (Outlook Business).

COMPANY OVERVIEW

Gita Renewable Energy Limited (GREL/ the Company) is a global pure-play, end-to-end renewable engineering, procurement and construction (EPC) solutions provider. Its key focus is to provide project design and engineering and to manage all aspects of project execution - from conceptualising to commissioning. It also provides Operations & Maintenance (O&M) services for own projects and those constructed by third parties.

Internal Control Systems

Internal control systems continued to function as effectively as in the past. Top management and the Board of Directors and the Committees thereof continue to be actively involved in ensuring that all controls work as intended.

Financial and Operations Performance

The Companys revenue from operations for the year under review is Rs. 5,60,000 during the period 2024-25, signifying a decrease of more than 50%. The decrease in revenue during the year under review is attributed to the decrease in the Investment activities. The operating profit has also been lower for the year under review.

The Company has identified the following as Key Financial Ratios:-

The Company does not have any debt/ borrowings, hence disclosure of Debt-Equity Ratio is not applicable. The net Profit of the Company has reduced during the year, primarily due to higher input costs, increased finance expenses, lower sales realizations etc. The Management continues to focus on cost optimisation, operational efficiency, and revenue enhancement measures.

Human Resource Development

There have been no material developments in Human Resources. The total number of employees are 6.