Jaiprakash Power Ventures Ltd Management Discussions

(Forming part of Directors Report for the year ended 31st March, 2024)

1.0 ECONOMIC REVIEW

1.1 Global Economy

Despite gloomy predictions, the global economy remains remarkably resilient, with steady growth and inflation slowing almost as quickly as it rose. The journey has been eventful, starting with supply-chain disruptions in the aftermath of the pandemic, an energy and food crisis triggered by Russias war on Ukraine, a considerable surge in inflation, followed by a globally synchronized monetary policy tightening.

The world economy displayed sign of recovery from the COVID-19 pandemic, Russias Ukraine war causing supply bottlenecks and rise in commodity prices, including energy prices and rising inflation. Though tightening measures with high interest rates and withdrawal of fiscal supports contained the inflation to some extent, it is expected to have its impact on employment and the growth.

Central Banks in consultations with Governments in advanced economies effected eased fiscal policy. The US Economy, where GDP had already exceeded its prepandemic path, eased policy more than did euro area and other economies in which the recovery was incomplete. In emerging market and developing economies, in which output has on average fallen even further below the prepandemic trend, on average the fiscal stance is estimated to have been neutral.

Global growth which was estimated at 3.1 percent in 2023 is projected to remain at around same level of 3.1 percent in 2024 with slight inclination of rising modestly to 3.2 percent in 2025.

The growth in the United States is projected to fall from 2.5 percent in 2023 to 2.1 percent in 2024 and 1.7 percent in 2025, with the lagged effects of monetary policy tightening, gradual fiscal tightening, and a softening in labor markets slowing aggregate demand, while growth in the euro area is projected to recover from its low rate of an estimated 0.5 percent in 2023, which reflected relatively high exposure to the war in Ukraine, to 0.9 percent in 2024 and 1.7 percent in 2025 due to stronger household consumption as the effects of the shock to energy prices subside and inflation falls, supporting real income growth, is expected to drive the recovery. Among other advanced economies, growth in the United Kingdom is projected

to rise modestly, from an estimated 0.5 percent in 2023 to 0.6 percent in 2024, as the lagged negative effects of high energy prices wane, then to 1.6 percent in 2025, as disinflation allows an easing in financial conditions and permits real incomes to recover. Growth in emerging and developing Asia is expected to decline from an estimated 5.4 percent in 2023 to 5.2 percent in 2024 and 4.8 percent in 2025, with an upgrade of 0.4 percentage point for 2024 over the October 2023 projections, attributable to Chinas economy. Growth in China is projected at 4.6 percent in 2024 and 4.1 percent in 2025, with an upward revision of 0.4 percentage point for 2024 since the October 2023 WEO. The upgrade reflects carryover from stronger-than expected growth in 2023 and increased government spending on capacity building against natural disasters. Growth in India is projected to remain strong at 6.5 percent in both 2024 and 2025, with an upgrade from October of 0.2 percentage point for both years, reflecting resilience in domestic demand.

[Source: WORLD ECONOMIC OUTLOOK UPDATE, International Monetary Fund, January 2024]

While the Brent Crude Oil prices remained lesser volatile and down from USD 122.71 in July 2022 to USD 74.84 in July 2023, the world coal price index also subsided from a high of USD 577.58 in August 2022 to USD 173.83 in July 2023 leading to stabilization in energy prices.

The outlook for world economy indicates resilient growth and rapid disinflation resulting into favorable supply developments, including the fading of energy price shocks, and a striking rebound in labor supply supported by strong immigration in many advanced economies. Monetary policy actions have helped anchor inflation expectations even if its transmission may have been more muted, as fixed-rate mortgages became more prevalent.

Despite these welcome developments, numerous challenges remain, and decisive actions are needed. Calibrating monetary policy in response to underlying inflation dynamics, a renewed focus on fiscal consolidation to rebuild budgetary capacity to deal with future shocks, raise revenue for new spending priorities, and curb the rise of public debt is needed. More efficient multilateral coordination is needed for, among other things, debt resolution, to avoid debt distress and create space for necessary investments, as well as to mitigate the effects of climate change.

The growth projections as per IMF for next year is as follows:- World Economic Outlook Growth Projections

PROJECTIONS

(Real GDP, annual percent change)	2023	2024	2025
World Output	3.2	3.2	3.2
Advanced Economies	1.6	1.7	1.8
United States	2.5	2.7	1.9
Euro Area	0.4	0.8	1.5
Germany	-0.3	0.2	1.3
France	0.9	0.7	1.4
Italy	0.9	0.7	0.7
Spain	2.5	1.9	2.1
Japan	1.9	0.9	1.0
United Kingdom	0.1	0.5	1.5
Canada	1.1	1.2	2.3
Other Advanced Economies	1.8	2.0	2.4
Emerging Market and Developing Economies	4.3	4.2	4.2
Emerging and Developing Asia	5.6	5.2	4.9
China	5.2	4.6	4.1
India	7.8	6.8	6.5
Emerging and Developing Europe	3.2	3.1	2.8
Russia	3.6	3.2	1.8
Latin America and the Caribbean	2.3	2.0	2.5
Brazil	2.9	2.2	2.1
Mexico	3.2	2.4	1.4
Low-Income Developing Countries	4.0	4.7	5.2

Source: IMF, World Economic Outlook, April, 2024

1.2 Indian Economy

In the face of unprecedented challenges such as the Covid pandemic and geopolitical conflicts, the Indian economy has demonstrated a remarkable ability to bounce back and convert challenges into opportunities while striving to achieve strong, sustainable, balanced, and inclusive growth.

Following the vision of the Honble Prime Minister to make India a US$ 5 trillion economy by 2024-25, various initiatives have been taken by national leadership like promoting "Make In India", "Vocal for Local", improving banking network, thrust on infrastructural development, digitization at every level of functioning, labour reforms, augmenting logistic facilities, introducing more ease of doing business and frequent policy reforms that were aimed to remove bottlenecks.

Indias current account recorded a surplus of US$ 5.7 bn or 0.6% of GDP in Q4FY24 after 10 consecutive quarters of deficit. This was primarily due to a sharp fall in merchandise trade deficit to a 10-quarter low, partly offset by a sequential decline in net services receipts. It is estimated that the Indian Economy has grown in 2023-24 by 7.3 per cent on top of the 9.1 per cent (FY22) and 7.2 per cent (FY23) in the previous two years, and the economy is generating jobs. This impressive post pandemic recovery has seen the urban unemployment rate decline to 6.6 per cent.

Indias GDP growth figures for 2023-24, at 8.2 per cent, beat all estimates including the governments own, boosted by higher tax collection by approx. 19%, lower subsidy pay outs and growth in sectors such as manufacturing, construction and services, .

Real GDP (adjusted to inflation as opposed to nominal inflation), the sum of all goods and services produced in the country and considered a major barometer for a countrys growth, is estimated to have touched Rs 173.82 lakh crore in 2023-24, as against Rs 160.71 lakh crore 2022-23, when the GDP growth was 7 per cent compared to the previous fiscal.

Among sectors, agriculture has grown by 1.4 per cent, which is encouraging, despite sub-normal monsoon, Mining grew by 7.1 per cent, Construction grew by 9.9%. Tourism, recreation, hotels, etc. did witness an upsurge due to pent up demand. Higher profits of companies in the hospitality sector also contributed to this increase. The financial sector continued to do well and grew by 8.4 per cent. The banking sector had witnessed high growth in both deposits and credit last year, which added to this buoyancy.

The inflation remained at 4.83% in April 2024 against 5.49 in March 2023. With Inflationary pressures moderated with headline inflation softening driven by a fall in core inflation and deflation in fuel prices, the Monetary Policy Committee (MPC) kept the policy repo rate unchanged at 6.50%, maintaining a stance of withdrawal of accommodation to ensure inflation aligns with the target while supporting growth.

A well-diversified economy like Indian with significant strengths in various sectors, notably, the information technology (IT) sector, pharmaceuticals, agriculture, and manufacturing contribute significantly to its resilience and growth. The IT sector, in particular, has been a major driver, with India being a global leader in software services and IT outsourcing. India is all set to become a reckonable world economic power becoming "Viksit Bharat" by 2047. The International Monetary Fund (IMF) raised its growth projection for Indias GDP in the current fiscal year 202425 to 6.8%, and forecast a 6.5% expansion next year. [World Economic Outlook April 2024].

2.0 INDIAN POWER SECTOR

Posting a GDP growth of for FY 2023-24, at 8.2 per cent, boosted by higher tax collection and growth in sectors such as manufacturing, construction and services, the energy requirement has increased by 8.6% to 11,02,887 MU during the current year 2023-24 from 10,15,908 MU during same period previous year. Apart from the Government of Indias focus on attaining Power for all, the growing population, faster urbanization, faster industrialization, growing demand of air conditioning and sustained economic growth continues to drive electricity demand in India.

The All India Installed Capacity (GW) as on 31st March, 2024, as released by CEA was 442 GW with capacity addition of 26 GW in FY 2023-24 as follows:

Sector	Thermal	Nuclear	Hydro	Renewable Energy Source	Grand Total
State	77.88	0	27.25	2.54	107.67
Private	86.44	0	3.93	139.48	229.85
Central	78.90	8.18	15.74	1.63	104.45
All India	243.22	8.18	46.93	125.16	441.97

The Government of India is making serious efforts to boost the renewable energy segment due to its sustainability and countrys climate change obligations. India currently has a total renewable energy capacity of (including large hydropower) have installed capacity of 191.67 GW comprising of Wind power capacity of 46.16 GW, Solar Power: 82.63 GW and 10.77 GW Bio Power and balance as residual sources as on March 2024.

The Government has decided to invite bids for 50 GW of renewable energy capacity annually for the next five years

i.e., from Financial Year 2023-24 till Financial Year 202728. These annual bids of ISTS (Inter-State Transmission) connected renewable energy capacity will also include setting up of wind power capacity of at least 10 GW per annum. The plan finalized by Ministry of New & Renewable Energy (MNRE) at a meeting chaired by Union Minister for Power & NRE Shri R.K. Singh, is in accordance with Prime Ministers announcement at COP26, of achieving 500 GW of installed electricity capacity from non-fossil fuel (Renewable Energy + Nuclear) sources by FY 2030.

Considering the fact that Renewable Energy (RE) projects take around 18-24 months for commissioning, the bid plan will add 250 GW of renewable energy and ensure 500 GW of installed capacity by FY 2030. The Ministry of Power is already working on upgrading and adding the transmission system capacity for evacuating 500 GW of electricity from non-fossil fuel. [Source Press Release of PIB 5.4.2023].

2.1 Generation

The Electricity generation during the FY 2023-24 was 1738.10 BU against 1624.16 BU in FY 2022-23 [source CEA], higher by 7.02%.

Share of coal-based capacities in Indias total installed capacity was at around 55.03% while that of renewables has risen to 28.31%. The PLF of thermal based plants is at 68.28% during FY 2023-24 against 64.15% in FY 2022-23. This is due to incentive scheme announced by Government of India for plants achieving PLF of 85% or above.

As per Report published by CEA for FY 2023-24, the data for power generation was as follows:-

Type	Apr. 2023 to Mar. 2024	Apr. 2022 to Mar. 2023	% Change
Thermal	1326.09	1206.15	9.94
Nuclear	47.88	45.83	4.48
Hydro	133.97	162.05	(-) 1733
RES	225.46	203.37	10.86
Bhutan Import	4.71	6.76	(-) 30.39
All India*	1738.10	1624.16	7.02

Indias power sector is most diversified with respect to power generation mix, ranging from conventional sources like coal, lignite, gas, oil and hydro to non-conventional sources like wind, solar and waste based generation.

2.2 Transmission

India has a robust National Grid which facilitates seamless power transfer from the resource rich areas to major load centers of the country with reliability & security. Power can be transferred from surplus regions/states to deficit region/states. The capacity of national grid is being expanded on a continuous basis to commensurate with the growth in electricity generation and electricity demand. As on March 2024, the Indian Transmission network was 4.86 Lakhs ckt Kms transmission as against 4.71 Lakhs ckt kms in previous year. The inter-regional capacity of the National Grid is 1.17 Lakhs MW. The newly launched PM Gati Shakti initiative is expected to streamline project development and reduce time and cost overruns for all infrastructure projects including transmission, which will help address Right of Way (RoW) issues for transmission lines. Meanwhile, for mobilising investments through the asset monetisation route, the MoP has recently issued guidelines under the acquire, operate, maintain and transfer PPP model. Further, the notification of the General Network Access (GNA) regulations in the last year is expected to improve network planning and new transmission corridors. During 2023, 14,390 ckm of transmission lines, 61,591 MVA of transformation capacity and 4,290 MW Inter-regional Transfer Capacity has been added. It is planned to integrate 500 GW of non-fossil fuel by the year 2030.

2.3 Distribution

Power distribution is the crucial link in the electricity supply chain. It assumes great significance as this segment has a direct impact on the sectors commercial viability, and ultimately on the consumers who pay for power services. The sector had been plagued by high distribution losses, obsolete distribution system, operational inefficiencies, unstable and uneconomical tariff policies and lack of modernization.

The sector has started receiving greater attention of governments with heavy investment. Several new initiatives have been introduced to reduce aggregate technical and commercial (AT&C) losses along with a definitive regulatory framework. As a result, the AT & C losses started showing a decline from 21.64% in FY 201819 to 15.2% in 2022-23. It is targeted to reduce it to 12% by 2024-25.

Government of India has been helping the States through its various schemes including Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Integrated Power Development Scheme (IPDS) to achieve the objective of providing uninterrupted power supply to all households. Under the recently launched Revamped Distribution Sector Scheme (RDSS), the State Power Distribution Utilities are financially supported to strengthen Distribution infrastructure and the fund releases under the scheme are linked to initiation of reforms and achievement of results that also includes trajectories for improving electricity

supply hours to urban and rural consumers. Prepaid Smart metering is the critical intervention envisaged under RDSS. Along with the prepaid Smart metering for consumers, system metering at feeder and DT level with communicating feature along with associated Advanced Metering Infrastructure (AMI) would be implemented under TOTEX mode (Total expenditure includes both capital and operational expenditure) thereby allowing the Discoms for measurement of energy flows at all levels as well as energy accounting without any human interference. Implementation of Late Payment Surcharge and Related Matters Rules 2022 has strengthened the Gencos in regulating power supply in case of default. Integrated Power Development Scheme (IPDS) Scheme has strengthened sub-transmission and distribution networks in the urban areas, improved Metering of distribution transformers / feeders / consumers in the urban area and has ensured IT enablement of distribution sector and strengthening of distribution network.

2.4 Power Trading

With heightened thrust on digitization, Government of India is promoting power trading on Energy Exchanges, which is gaining popularity, indicating a significant shift in the Indian power market that has been largely dominated by bilateral deals. Presently there are mainly three Power exchanges operating in India - Indian Energy Exchange (IEX), Power Exchange of India Ltd. (PXIL), and Hindustan Power Exchange (HPX). Indian Energy Exchange (IEX), which controls 84% of the total exchange based power trading has clocked a trade volume at 101.71 BUs in financial year 2023-24, PXIL at 9.04 BUs and HPX at 10.32 BUs.

GOVERNMENT INITIATIVE:

During the year, the government has taken several steps/

initiatives to trouble shoot the issues in power sector as well as

to foster growth therein, some of them are mentioned below:

1. Development of Stalled Hydro Electric Projects in Arunachal Pradesh:

For the development of stalled Hydro Power Projects in Arunachal Pradesh, 29 projects of cumulative capacity 32,415 MW were indicated to the Hydro CPSEs (NHPC Ltd, NEEPCO Ltd, SJVN Ltd and THDC Ltd) under Ministry of Power, for taking over as per the basin-wise indication conveyed by the Ministry in December, 2021. NHPC Ltd, NEEPCO Ltd and SJVN Ltd signed Memorandum of Agreement (MoA) with the Government of Arunachal Pradesh on 12th August, 2023, for development of 12 stalled Hydro Electric Projects (capacity 11,523 MW) in the State.

2. SAMARTH Mission:

A Modified Revised Biomass Policy has been issued on 16.06.2023 indicating price benchmarking of biomass pellets and procurement process of pellets. Addendum to the Revised Policy issued on 03.05.2023 for inclusion of Bamboo and its by-products for manufacturing Biomass pellets. With Governmental thrust, during the year, exclusive loan schemes for Biomass pellet manufacturing have been launched by SBI and other Govt. Banks.

3. Unnat Jyoti by Affordable LEDs for ALL (UJALA)

The Prime Minister, on 5th January 2015 launched Unnat Jyoti by Affordable LED for All (UJALA) programme. Under UJALA scheme, LED bulbs, LED Tube lights and Energy efficient fans are being sold to the domestic consumers for replacement of conventional and inefficient variants. Till date, over 36.86 crore LED bulbs, 72.18 lakh LED Tube lights and 23.59 lakh Energy efficient fans (including over

55,000 BLDC fans) have been distributed by EESL across India. This has resulted in estimated energy savings of 48.39 billion kWh per year with avoided peak demand of 9,788 MW, GHG emission reduction of 39.30 million ton CO2 per year and estimated annual monetary savings of Rs. 19,332 crore in consumer electricity bills. The above programme has been successful in creating the market for above appliances by bring down their price significantly and making them affordable for consumers.

4. Street Lighting National Program (SLNP)

The Prime Minister, on 5th January, 2015 launched Street Lighting National Programme (SLNP) to replace conventional street lights with smart and energy efficient LED street lights across India.

Till date, EESL has installed over 1.30 crore LED Street Lights in ULBs and Gram Panchayats across India. This has resulted in estimated energy savings of 8.75 billion kWh per year with avoided peak demand of 1,459 MW, GHG emission reduction of 6.03 million ton CO2 per year and estimated annual monetary savings of Rs. 6,128 crore in electricity bills of municipalities.

Subsidy Accounting and Framework for Financial Sustainability in Power Sector:

With the amendment in the Electricity Rules, 2005 notified on 26.07.2023, the Government has put in place additional measures to improve financial health of Discoms with streamlining the process of accounting, reporting, billing and payment of subsidy by States to the Distribution Companies. The Rules mandate that a quarterly report shall be submitted by the distribution licensee within thirty days from end date of the respective quarter and the State Commission shall examine the report, and issue it within thirty days of submission of the quarterly report. The report will inter-alia cover the findings regarding raising of demands for subsidy based on accounts of the energy consumed by the subsidized categories; and the subsidy payable to these categories as announced by State Government and the actual payment of subsidy in accordance with section 65 of the Act.

Provision has been made that if subsidy accounting and the raising of bills for subsidy is not found in accordance with the Act or Rules or Regulations issued thereunder, the State Commission shall take appropriate action against those responsible for non-compliance as per

provisions of the Act.

Under the framework for sustainability, in order to define a definite and reasonable goal for reduction of Aggregate Technical and Commercial (AT&C) loss, it is prescribed that the AT&C loss reduction trajectory would be approved by the State Commissions for tariff determination in accordance with the trajectory agreed by the respective State Governments and approved by the Central Government under any national scheme or programme, or otherwise. The trajectory for both collection and billing efficiency, for distribution licensee have to be determined by the State Commission, accordingly.

To handle summer peak demand, government has taken following pro-active step:

• Un-requisitioned/surplus power must be offered in power exchanges by all thermal generating stations.

• Planned Maintenance of Power Plants to be shifted to Monsoon Season.

• Domestic coal-based thermal power plants to continue blending 6% of imported coal till 30th June, 2024.

Extension of Section 11 directive to imported coal-based (ICB) generators till 15th October, 2024 to enable supply from ICB generators in the system.

OUTLOOK

The current decade (2020-2029) is going to witness a major transformation in the Indian electricity sector demand growth, energy mix and market operations, innovations and expansion of power reach to all. As per governments plan of "Power to All”, there has to be reliable access to sufficient electricity at all times to all, while also accelerating the clean energy transition by lowering its reliance on fossil fuels and moving toward more environmentally friendly, renewable sources of energy. Future investments will benefit from strong demand fundamentals, policy support and increasing government focus on infrastructure.

The Government of India is preparing a rent a roof policy for supporting its target of generating 40 GW of power through solar rooftop projects. It also plans to set up 21 new nuclear power reactors with a total installed capacity of 15,700 MW by 2031.

The Central Electricity Authority (CEA) estimates Indias power requirement to grow to reach 817 GW by 2030. Also, by 2029-30, CEA estimates that the share of renewable energy generation would increase from 18% to 44%, while that of thermal energy generation is expected to be reduced from 78% to 52%.

The government plans to establish renewable energy capacity of 500 GW by 2030.

RISKS/THREATS:

The power industry is not immune to risks as this is an industry spanning global markets across international economies and different geo-political environments. To quote a few, following risks are always looming large in the industry:

1. The power demand is co-extensive with the growth of economy. Any contraction in economy adversely affects the industry.

2. Tackling Carbon Emission emanated from fossil fuel based power plants is the biggest risk to Industry

3. The Industry is on the verge of fast changing technology and hence needs equal pace of investments as well as implementation of the technology to meet requirement of the advanced/updated technology.

4. Erratic fuel supply to TPPs due to insufficient railway infrastructure and high volatility in fuel prices. Lack of fuel safety poses risk of its becoming economical unviable.

5. Quality variations in available fossil fuel.

6. Hydro projects are always subject to hydrological risks

7. Since all power projects are capital intensive projects with higher gestation period and long payback period, lack of banks/financial institutions enthusiasm in financing the projects is a deterrent.

8. Not all power projects are having long term PPA which causes uncertainty of operations.

9. Frequent changes in regulatory regime.

10. Availability of coal at market price are market driven but quantity is controlled and market rates are controlled by regulators.

3.0 SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company is primarily engaged in generation of power and thus has only one segment. The Company has Amelia (North) Coal Mine which is for captive consumption. Recently, the Company has received "Right of Exploration" in respect Banda (North) Coal Block on which exploration work is going on. The turnover from Cement Grinding was Nil. The Company continued Sand Mining through a sub-contractor in the state of Andhra Pradesh till May 2023.

4.0 INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate internal control system which is commensurate with the nature and size of its operations and is manned by qualified and experienced personnel.

The system involves adopted policies and procedures regarding financial and operating functions for ensuring the orderly and efficient conduct of its business including adherence to Companys assets, prevention & detection of frauds and errors and timely preparation of reliable financial information.

The internal control systems are further supplemented by internal audit carried out by an independent firm of Chartered Accountants and periodical review by the management and Statutory Auditors. The Internal Audit reports are reviewed by the Audit Committee.

The internal control systems are implemented:-

• To safeguard the Companys assets from loss or damage.

• To keep constant check on cost structure.

• To provide adequate financial and accounting controls and implement accounting standards.

The senior management regularly reviews the findings and recommendations of the Internal Auditors so as to continuously monitor and improve internal controls to match the organizations pace of growth and increasing complexity of operations as well as to meet the changes in statutory and accounting requirements.

5.0 FINANCIAL DISCUSSION & ANALYSIS

After adoption of Indian Accounting Standards (Ind AS) from 1st April, 2016, the financial statements for the Financial Year 2023-24 have been prepared in accordance with Ind AS.

5.1 Standalone Financial Performance

The revenue from operations for the year ended 31st March, 2024 aggregated to Rs. 6,762.78 crore as compared to Rs. 5,786.67 crore in the previous year i.e. higher by Rs. 976.11 crore.

The operations resulted in profit before exceptional items, tax and regulatory deferral account balances for the year under review of Rs 1,710.28 crore as compared to profit of Rs 226.7 crore in the previous year due to improvement in the operational efficiency of the Company. Though the energy generation of Vishnuprayag HEP was lower in the current year due to hydrology, the Energy generation at Bina TPP was higher in the current year by 293.20 MUs. PLF of Bina TPP during the current year has been at 75.80% as compared to 68.03% in the previous year. Further the Energy generation at Nigrie STPP was higher in the current year by 1,687.61 MUs. PLF of Nigrie STPP during the current year has been at 84.87% as compared to 69.50% in the previous year.

Further, Other Income has increased to Rs.388.22 crore as compared to income of Rs. 135.26 crore in the previous year.

The Tax expenses during the year under review are Rs. 227.13 crore (including Deferred Tax of Rs. 206.64 crore) against Tax expenses of Rs. 167.68 crore in the previous year. The Net profit during the year before OCI under review is Rs. 686.10 crore against Net profit of Rs. 59.02 crore during the previous year.

5.2 Finance Cost

Finance cost has decreased from Rs. 559.70 crore in the Financial Year 2022-23 to Rs. 449.18 crore in FY 2023-24 mainly due to repayment of loan in current year.

5.3 Operational Performance

The Operational Performance of the company was as under:

	Name of Project
Parameter	Vishnuprayag HEP		Bina TPP		Nigrie STPP
	FY 22-23	FY 23-24	FY 22-23	FY 23-24	FY 22-23	FY 23-24
Plant Availability	99.51	97.87	83.59	89.83	87.19	93.03
PLF	54.53	46.32	68.03	75.80	69.50	84.87

The saleable energy generation for the year has been 13,565.6 MUs as compared to 11,832.45 MUs during previous year i.e. higher by 1733.15 MUs as detailed below:-

Energy in MUs

S.No Name of Plant	FY 2022-23	FY 2023-24	Variation
1 Vishnuprayag HEP	1,661.33	1,413.67	-247.66
2 Bina TPP	2,729.63	3,022.83	293.20
3 Nigrie STPP	7,441.49	9,129.10	1,687.61
Total	11,832.45	13,565.60	1,733.15

The Saleable energy generation of Vishnuprayag during the period ended 31st March, 2024 was 1,413.67 MUs as compared to 1,661.33 MUs during the corresponding previous year. Energy generation of Vishnuprayag HEP is Lower during the current year due to hydrology. Energy generation of Bina TPP is higher in the current year by 293.20 MUs. PLF of Bina TPP during the current year has been at 75.80% as compared to 68.03% in the corresponding period. Energy generation at JNSTPP is higher in the current year by 1,687.61 MUs. PLF of JNSTPP during the current year has been at 84.87% as compared to 69.50% in the corresponding previous year. The saleable energy generation of the JNSTPP was 9,129.10 MUs during the year.

5.4 Discussion on financial performance with respect to operational performance

The companys financial performance has improved due to operational efficiency and lower finance cost post implementation of the Debt Resolution Plan.

5.5 Consolidated Financial Review

The total income on consolidated basis for the year ended 31st March, 2024 aggregated to Rs. 7151.29 crore as compared to Rs. 5922.15 crore in the previous year. However, Net profit after tax and exceptional items before OCI on consolidated basis during the year under review stood at Rs.1,021.93 crore as compared to net Profit on consolidated basis of Rs. 55.42 crore during the previous year.

5.6 Key Financial Ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018 (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector-specific financial ratios, along with detailed explanation there for. The details of Key Financial Ratios for FY 2023-24 and FY 2022-23 are given below:

Ratio	FY 2023-24	FY 2022-23	% of variance	Reason for variance
Current Ratio (times)	1.82	1.19	53%	Advance from customer adjusted in current year so current liabilities decreased in current year.
Debt-equity Ratio (times)	0.37	0.44	-16%	NA
Debt Service Coverage Ratio (times)	2.56	0.46	457%	Ratio is improved due to Increase in earning after tax.
Return on Equity Ratio (ROE) (%)	6.14%	0.99%	520%	Ratio is improved due to Increase in earning after tax.
Inventory turnover ratio (times)	52.97	39.04	36%	NA
Trade Receivables turnover ratio (times)	64.21	87.24	-26%	Previous year Unbilled revenue Rs 21,577 Lkahs is billed in current year.
Trade Payables turnover ratio (times)	31.14	34.98	-11%	NA
Net capital turnover ratio (times)	4.61	11.79	-61%	A) .Current Liabilities decrease in current Year due to Advance from customer adjusted in current year, and B) Increase in sale in current year.
Net profit ratio (%)	10.15%	1.03%	885%	Ratio is improved due to Increase in earning after tax.
Return on Capital employed (%)	13.91%	5.12%	171%	Ratio is improved due to Increase in earning after tax.
Return on Networth (Times)	0.079	0.007	957%	The ratio is improved due to increase in earnings.

6.0 MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS

Human Resources are considered as one of the most critical resources in the business, which need to be continuously nurtured to maximize the effectiveness of the Organisation. The Company recognizes its human resources as the most valuable assets. The Company has appointed specialized professionals in the fields of engineering, finance, administration and technical and non-technical staff to take care of its operations and allied activities.

Total manpower of the Company at the end of the financial year was 1789 which includes professionals like engineers, chartered accountants, managers and other skilled and unskilled employees. These Teams of professionals are put in place both at Corporate Office and in all the project locations.

Various initiatives have been taken up for developing employees at all levels and to make them future ready for higher roles and responsibility. Necessary training was imparted to the staff for operations and maintenance of power stations by specialist from related fields including the equipment suppliers from time to time.

Industrial relations remained cordial throughout the year.

Place : New Delhi	For and on behalf of the Board (Manoj Gaur)
Date : 27th July, 2024	Chairman
	(DIN: 00008480)