Schneider Electric Infrastructure Ltd Management Discussions

Global Economic Scenario

Amidst the complex geopolitical landscape and the lingering effects of the COVID-19 pandemic, the global energy crisis has emerged as a critical challenge, exacerbated by supply chain disruptions and soaring inflation rates. The ongoing Russian-Ukrainian conflict has undoubtedly played a role in amplifying these issues. Geopolitical tensions have led to uncertainty in energy markets, affecting energy supplies and driving up costs, thereby triggering a domino effect on the global economy.

As countries grapple with the consequences of this crisis, they have been forced to reassess their energy policies and prioritize more sustainable and resilient alternatives. The scarcity of food supplies and the rising cost of living have further underscored the urgency for action. In response, governments worldwide have taken proactive measures to shift towards greener energy sources to mitigate the impacts of the crisis and build a more secure future.

In the United States, the Inflation Reduction Act has been introduced to address rising energy costs and promote the development of cleaner energy solutions. The European Unions Fit for 55 package and REPowerEU strategy signal a commitment to combat climate change and accelerate the transition to renewable energy. Japans Green Transformation (GX) program aims to create a sustainable energy ecosystem, while Korea is focusing on increasing the share of nuclear and renewable energy in its energy mix. Additionally, both China and India have set ambitious clean energy targets, demonstrating their dedication to a more environmentally friendly energy future.

This concerted global response marks a significant shift in energy priorities, with sustainability taking centre stage in the quest for a resilient and eco-conscious energy sector. The crisis has catalysed action, prompting nations to adopt greener alternatives and lay the groundwork for a more sustainable future. By embracing sustainable energy solutions, countries are not only addressing the immediate challenges posed by the energy crisis, but they are also paving the way for long-term resilience and environmental stewardship.

Indias Economic Scenario

Despite the prevailing uncertainties in the global economy, India has shown remarkable resilience, emerging as the worlds fifth-largest economy, surpassing the $3.75 trillion mark in 2023. The countrys chances of slipping into a recession are meagre, with a 0% probability, according to the Recession Probabilities Worldwide 2023 data. India is projected to achieve robust growth rates of more than 6% in the coming years, and outpacing developed nations like the US, EU, and Japan. The Reserve Bank of Indias prudent approach, with a modest increase in interest rates and a strong focus on domestic indicators, supports a GDP growth forecast of 6.5% for the fiscal year 2023-24. The Indian banking sectors solid fundamentals further contribute to sustaining economic growth.

Overall, Indias resilient economy, impressive growth projections, and favourable domestic indicators position the country to navigate global challenges successfully. With its steady progress and strong banking sector, India is on a path towards high growth and economic stability. The economy has shown remarkable resilience, and notwithstanding the pressure from US and EU, India has increased its ties with Russia. Indias Imports from Russia reached a record high this year as it brought discounted oil and coal from the sanctioned-hit country. While IMF estimates that global growth will bottom out at 2.8% this year before rising modestly to 3.0% in 2024, it has been estimated that India should grow at 5.9% in 2023 and 6.3% in 2024.

According to the Ministry of Finance (MoF), the real GDP is projected to grow by 7% (Y-o-Y) relative to 8.7% in 2021-22. Indias economy has shown a relatively higher degree of resilience to external exogenous shocks compared to other emerging market economies (EMEs), thanks in part to its large domestic market and lower integration in global value chains and trade flows. This suggests that Indias economy may be less susceptible to the adverse effects of global economic fluctuations and could potentially be better positioned for sustained economic growth.

Budgets Impact on Indias Power and Infrastructure

The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved Indias updated Nationally Determined Contribution (NDC) to be communicated to the United Nations Framework Convention on Climate Change (UNFCCC). The updated NDC aims to enhance Indias contributions to the global response to climate change, as agreed under the Paris Agreement, and usher in low emissions growth pathways. It includes targets to reduce emissions intensity of GDP by 45% by 2030 from 2005 levels and achieve about 50% cumulative electric power installed capacity from nonfossil fuel-based energy resources by 2030. The updated NDC reflects Indias commitment to sustainable lifestyles and climate justice to protect the poor and vulnerable from the impacts of climate change. It also aligns with Prime Minister Modis vision of a "One-Word Movement: LIFE" focused on a lifestyle for the environment. Indias updated NDC represents a framework for the countrys transition to cleaner energy from 2021 to 2030 and will be implemented through various government programs and schemes. It emphasizes the need for international financial resources and technological support to address the global climate change challenge. Indias climate actions aim to reduce overall emission intensity and improve energy efficiency while safeguarding vulnerable sectors and society.

The Governments Union Budget for FY2023-24 focused on promoting technology- enabled development, energy transition and climate action. The Government also conferred infrastructure status to energy storage systems, including grid-scale battery systems. The budget also strongly supported electric mobility through planned incentives for the EV infrastructure and the EV ecosystem. These key measures, among others, are expected to have long-term influences on the further development of Indias power infrastructure and how industries view power consumption and management through the lens of sustainability and climate action.

The budget emphasizes green growth, highlighting the recently launched National Green Hydrogen Mission, allocated Rs. 19,700 crores, to transition the economy towards low carbon intensity and reduce fossil fuel imports. The aim is to achieve an annual production of 5 MMT by 2030. Additionally, theres a provision of Rs. 35,000 crores for priority capital investments in energy transition and net zero objectives by the Ministry of Petroleum & Natural Gas.

To promote sustainable development, the budget offers support for Battery Energy Storage Systems with a capacity of 4,000 MWH through Viability Gap Funding. Moreover a significant investment of Rs. 20,700 crores, including central support of Rs. 8,300 crores, will be directed towards constructing an Inter-state transmission system to evacuate and integrate 13 GW of renewable energy from Ladakh.

The Power Sector in India

As of October 31,2022, India boasts an impressive installed power capacity of 408.71 GW, positioning it as the worlds third-largest producer and consumer of electricity. The nations burgeoning population and expanding electrification efforts drive a surge in per-capita electricity usage, further propelling this upward trajectory. Projections indicate that power consumption in India is anticipated to reach 1,894.7 TWh by the end of 2023. Recognising the need for sustainable energy solutions, the Indian Government is actively prioritising renewable sources to meet its energy demands. It has set an ambitious target to derive 40% of its energy from non-fossil fuel sources by 2030.

The Indian power sector has been transitioning, with a greater emphasis on adopting renewable energy sources. The Indian Government has set ambitious targets for the adoption of green energy. It has taken various measures to encourage renewable energy development, such as solar and wind power. The implementation of new policies, such as the Ujwal Discom Assurance Yojana (UDAY) scheme, has been aimed towards improving the financial health of the distribution companies, reducing their technical and commercial losses, and bringing down the cost of power Additionally, the Government has focused on increasing electricity access to rural areas, providing subsidies for renewable energy projects, and establishing the National Smart Grid Mission to modernise the electricity grid.

Indian Power Generation

Overview

India has made significant strides in its energy sector, as evident from the total installed production capacity as of April 30, 2023. According to data from the Central Electricity Authority (CEA), the total installed capacity in India stands at a substantial 4,16,591 megawatts (MW). This capacity is distributed among different sectors, with the private sector leading the way, accounting for 50.6% or 2,10,810 MW. The state sector follows closely behind with 25.4% or 1,05,726 MW, while the central sector contributes 24.0% or 1,00,055 MW.

When examining the fuel-wise bifurcation of the installed generation capacity, it becomes apparent that India is actively diversifying its energy sources. The fossil fuel category holds significant prominence, representing 57.0% or 2,37,269 MW of the total capacity. Within this category, coal takes the largest share, with 49.3% or 2,05,235 MW, followed by gas at 6.0% or 24,824 MW. Non-fossil fuel sources also comprise a considerable portion, constituting 43.0% or 1,79,322 MW of the total capacity. Renewable energy sources (RES), including hydro, contribute 41.4% or 1,72,542 MW. Hydro holds the highest share of non-fossil fuel sources at 11.2% or 46,850 MW, with wind, solar, and other renewable energies accounting for 30.2% or 1,25,692 MW. Nuclear power represents 1.6% or 6,780 MW of the total installed capacity.

This diversification in the energy mix reflects Indias commitment to reducing its dependence on traditional fossil fuels and transitioning towards cleaner and more sustainable energy sources. The significant contribution of non-fossil fuel capacity, including RES and nuclear power showcases Indias efforts to embrace renewable and low-carbon alternatives in its energy generation portfolio.

Indian Power Distribution

Overview

The Government of India is firmly committed to green energy through various initiatives. With a significant budget, the Revamped Distribution Sector Scheme (RDSS) aims to reduce Aggregate Technical & Commercial (AT&C) losses and eliminate the gap between the Average Cost of Supply and Average Revenue Realised by 2024-25.

The scheme focuses on financial support for prepaid smart metering, distribution infrastructure upgrades, training, capacity building, and other supporting activities.

In addition, the approval of the Green Energy Corridor (GEC) Phase-II for the Intra-State Transmission System (InSTS) highlights Indias dedication to renewable energy integration. GEC-1 is already under implementation in multiple states, working on grid integration and power evacuation of around 24 GW of renewable energy. GEC-2 aims to facilitate the grid integration and power evacuation of approximately 20 GW of renewable energy projects in seven states over five years. The projects estimated cost is Rs. 12,031 crores, with central finance assistance offsetting intrastate transmission charges and reducing power costs.

These initiatives align with Indias objective of achieving 450 GW of installed renewable energy capacity by 2030. The GEC is vital in synchronising renewable energy sources with conventional power stations, contributing to long-term energy security and sustainable growth while reducing the countrys carbon footprint. Moreover these efforts are expected to generate significant employment opportunities in both skilled and unskilled sectors.

Metering, billing, and collection activities are crucial for the profitability of discoms. The gradual improvement in billing and collection efficiency has reduced AT&C losses in the country, but they are still high compared to global standards. Moreover there is a significant disparity in performance between states.

The Government is seeking to bring about improved efficiency by way of proposed legislation. The bill encompasses a variety of legislative measures with the primary objective of eliminating distribution monopolies. The most crucial among them is the proposed structural modification to permit multiple distribution companies to function within a given territory. The purpose of this change is to enable consumers to choose their electricity supplier

Indias Clean Energy Transition

India is making significant strides in its clean energy transition. The Ministry of New and Renewable Energy aims to achieve 500 GW of installed electricity capacity from nonfossil sources by 2030. India ranks 4th globally in renewable energy installed capacity, including wind and solar power. The country added 14.21 GW of renewable energy capacity from January to October 2022. To boost the production and use of green hydrogen, India has launched the National Green Hydrogen Mission, aiming to achieve 10% hydrogen blending in the existing natural gas pipeline network by 2030. The mission aims to make India a global hub for green hydrogen and its derivatives, emphasising energy independence and decarbonisation. However, challenges such as high costs and limited infrastructure must be addressed for widespread adoption.

India has initiated the GEC projects to support the integration of renewable power and future energy demands. The first component, inter-state transmission lines and substations, was completed in March 2020. The second component focuses on intra-state transmission lines and substations, with completion expected by March 2023. The GEC facilitates the evacuation of renewable energy and strengthens the energy infrastructure for Indias clean energy transition. Schneider Electric offers solutions to optimise renewable energy performance and efficiency and energy storage solutions for the GEC project, thereby promoting sustainable development.

Microgrids are crucial in bringing electricity to remote regions and promoting economic growth. Solar microgrids in the Himalayan regions of Ladakh have boosted tourism income by approximately $24,000 in less than two years. These microgrids provide reliable and sustainable electricity to Tier 2 and Tier 3 regions, enabling small and medium businesses to thrive. Overall, Indias focus on clean energy transition, green hydrogen, and renewable infrastructure like the GEC and microgrids demonstrates the countrys commitment to a cleaner and sustainable energy future.

DISCOM Reform in the current economic climate

As of March 2023, DISCOM (Distribution Company) reform in India is ongoing, but progress has been slow. The biggest challenge has been the financial health of DISCOMs, with many facing high debt levels and revenue losses.

The Government has initiated various measures such as UDAY (Ujwal DISCOM Assurance Yojana) to improve the financial viability of DISCOMs, which includes reducing AT&C losses, increasing operational efficiency, and ensuring timely payments from customers.

However, the results have been mixed, with varying success rates across states. Some states have demonstrated significant improvements in reducing losses and improving the financial health of DISCOMs, while others are still facing challenges. The Government has also proposed several newer policies, such as the National Electricity Policy, Electricity (Amendment) Bill 2021, and renewables in the DISCOM mix to improve DISCOM operations. Overall, Indias DISCOM reform is ongoing, and while progress has been made in some areas, there is still a long way to go to achieve a sustainable and efficient power sector

Schneider Electric plays a role in helping power DISCOMs to become financially healthier by offering a range of energy management and automation solutions. These solutions can help DISCOMs reduce operating costs, improve efficiency, and increase revenue through better energy management. Schneider Electrics solutions can also help DISCOMs optimise their distribution networks and reduce distribution losses, significantly improving their financial performance. By implementing advanced metering and billing solutions, DISCOMs can improve billing accuracy and revenue collection while lowering operational costs.

Schneider Electric can also help DISCOMs to implement renewable energy solutions, such as solar and wind power, to reduce their dependence on costly fossil fuels and achieve energy independence. These solutions offered by Schneider Electric can help DISCOMs to efficiently manage the power distribution, bringing overall cost effectiveness.

Infrastructure Sector Overview

The infrastructure industry in India is one of the fastest-growing sectors, focusing on developing world-class transportation, communication, energy, and health infrastructure. The Indian Government has made considerable efforts to attract public and private investments in infrastructure development projects through initiatives such as the National Investment and Infrastructure Fund (NIIF) and the Bharatmala Pariyojana.

Some of the key focus areas in the infrastructure industry in India include:

1. Transportation infrastructure - The Indian Government has invested heavily in building new highways, railways, airports, and ports. The implementation of the Bharatmala Pariyojana and Sagarmala projects focuses on developing road and maritime connectivity.

2. Energy infrastructure - Indias energy sector is expanding, with a significant focus on increasing renewable energy generation capacity. Initiatives such as the Jawaharlal Nehru National Solar Mission, Ujwal DISCOM Assurance Yojana (UDAY), and National Wind-Solar Hybrid Policy have helped boost the renewable energy sector

3. Urban infrastructure - The

Government has launched several initiatives, such as Smart Cities Mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT), to develop smart and sustainable urban infrastructure across India.

4. Water and sanitation infrastructure -

The Government has launched several initiatives, such as the Swachh Bharat Abhiyan and Jal Jeevan Mission, to provide clean water and sanitation facilities across India.

Mining, Metals and Minerals Sector Overview

Indias Mining, Metals and Minerals sector presents significant opportunities for investment and growth in the coming years. Still, it also faces challenges that will need to be addressed for sustainable development. As of 2023, Indias Mining, Metals and Minerals sector continues to play a significant role in the countrys economic growth, contributing to the production of various metals and minerals such as iron ore, coal, copper, zinc, lead, and gold.

India is one of the worlds largest iron ore producers, and the sector has benefited from both increased domestic demand and rising global commodity prices. India is also one of the largest producers of coal, which is primarily used for power generation and steel production. In recent years, the Indian Government has been working to boost the sectors growth through various policy initiatives to increase domestic production, promote exploration and research, and attract foreign investment. However, the sector has faced environmental concerns, land acquisition issues, and regulatory hurdles.

Oil and Gas Sector Overview

Indias energy landscape is heavily reliant on imports, with oil and gas comprising a significant portion of the countrys energy mix. However, in recent years, India has been actively working to decrease its dependence on these fossil fuels and transition towards more sustainable and environment friendly alternatives.

To achieve this goal, India has ramped up efforts to increase the share of biodiesel, hydrogen fuel, and natural gas in its energy portfolio. One of the key strategies is to boost biodiesel production by increasing ethanol blending in petrol from the current 10% to 20% by 2025. This move not only reduces the consumption of traditional fossil fuels but also supports the growth of the biofuel industry in the country.

Furthermore, the government has laid out an ambitious vision to transform India into a gas-based economy by enhancing the share of natural gas in the energy basket to 15% by 2030. This shift towards natural gas not only reduces carbon emissions but also provides a cleaner and more sustainable energy source.

To promote the use of clean energy, the National Green Hydrogen Mission was approved by the Union Cabinet in January 2022. This mission aims to position India as a leading producer and supplier of Green Hydrogen on the global stage. By fostering the development of Green Hydrogen technology, India seeks to create export opportunities and contribute to the global efforts in combating climate change.

In addition to these efforts, India is investing heavily in renewable energy sources to enhance its energy security and reduce its carbon footprint. The government has set an ambitious target to increase the share of renewable energy in its energy mix to 40% by 2030. This includes significant expansion of solar wind, hydroelectric, and other renewable energy projects across the country.

Mobility Sector Overview

The mobility sector in India has seen tremendous growth over the past decade. With the rapid expansion of urbanisation and the rising middle class, the demand for transportation has also increased. The sector comprises various modes of transportation, such as cars, motorcycles, buses, trains, and flights.

The mobility sector in India is continuously evolving, and efforts are being made to make transportation more efficient, sustainable, and safe for commuters.

The Indian Governments push for sustainable and electric mobility has also significantly impacted the sector In 2013, India launched the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme to encourage the countrys adoption of electric vehicles (EVs). The scheme has been extended multiple times, and currently, the second phase of the scheme is in operation.

The rise of ride-hailing platforms such as Ola and Uber have also led to the sectors growth. The convenience of ride-hailing services has helped reduce dependence on individually owned vehicles, reducing road congestion. Despite the growth, the industry still faces several challenges, such as poor infrastructure, safety concerns, lack of public transport options in smaller cities and towns, and high fuel prices.

The Indian railway infrastructure is rapidly evolving to meet the needs of its growing population and economy As of March 2023, the Indian railway infrastructure has undergone significant transformation and modernisation. The Indian Government has been investing heavily in upgrading and expanding the existing rail network and constructing new rail corridors to connect various parts of the country Some notable developments include the launch of Vande Bharat Express, the countrys fastest train, and the introduction of modern amenities such as Wi-Fi, audio-visual entertainment, and improved catering services on several popular routes.

The Indian Railways is also deploying high-speed, state-of-the-art trains, such as the bullet train project between Mumbai and Ahmedabad, to provide fast and efficient transportation across the country Additionally the Government has been working on electrifying rail tracks to reduce carbon emissions, improve air quality, and reduce costs.

The Indian Railways has established a target to electrify its entire broad gauge network. Schneider Electric can assist Indian Railways through its energy management, power management solutions, asset monitoring, and automation solutions to optimise its performance.

Airport Infrastructure

India has a vast network of airports spread across the country, including domestic and international airports.

In recent years, the country has been investing heavily in upgrading and expanding its airport infrastructure to meet the increasing demand for air travel.

According to the Ministry of Civil Aviation, Indias domestic passenger traffic has seen robust growth in recent years, with the number of passengers crossing over 341 million in 2019-20.

The growth is being driven by the rapid expansion of low-cost carriers and passenger-friendly policies. India has been adopting the Public-Private Partnership (PPP) model for airport development, involving the private sector in financing, developing, and operating airports. This has led to increased investments in airport infrastructure and improved service standards. The Government has been developing new greenfield airports in various parts of the country to cater to the growing demand. The recent development of the Navi Mumbai International Airport is a significant example of this trend.

India has a growing network of tunnels that serve various purposes, including transportation, irrigation, and hydroelectric power generation. The countrys tunnel infrastructure includes road and rail tunnels in mountainous regions. Indias tunnel infrastructure is steadily expanding and modernising, with several major projects underway or planned for the near future. One notable example is the Atal Tunnel, the longest highway tunnel in the world at 9.02 km, reducing travel time between Srinagar and Jammu by up to two hours.

Indias Electric Vehicle (EV) Infrastructure

India has been gradually developing its electric vehicle (EV) infrastructure over the past few years. While the development of EV infrastructure in India is still in its early stages, the Government and private sector are both committed to increasing the number of EV charging stations over the coming years to make electric mobility accessible for all. The Indian Government has launched various initiatives and policies to promote EV adoption in the country. To begin with, the Government has rolled out the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, which offers financial incentives to EV buyers and encourages the establishment of EV charging stations across the country. The Government aims to install 2,700 charging stations in metro cities and other important locations across the country through phase II of the FAME scheme.

In addition to this, several private companies have also started setting up electric vehicle charging stations in various cities, including Delhi, Mumbai, and Bangalore. Lately, oil distribution firms in India have commenced the establishment of electric vehicle charging stations at their petrol pumps. Furthermore, the Indian Government has also introduced a policy that requires Indian states to formulate their own EV policies by issuing specific guidelines and regulations for EV infrastructure development. This has encouraged several states to launch their own initiatives to support the growth of EV infrastructure.

The growth of Indias EV infrastructure presents a significant business opportunity for Schneider Electric. As the adoption of electric vehicles continues to increase, the demand for EV charging infrastructure is also rising. Schneider Electric can leverage its energy management and automation expertise to develop and deliver innovative solutions for EV charging infrastructure.

Schneider Electric provides diverse EV charging solutions that help EV charging station operators optimize operations, reduce energy expenses, and enhance efficiency. Moreover, Schneider Electric offers comprehensive integrated options for EV charging stations, including energy storage solutions, solar power installations, and microgrid solutions.

Company Overview

Your Company is a part of Schneider Electric Group (Group), a multinational corporation specialising in energy management and automation solutions.

The Group established its operations in India in 1963 and has since been a leading provider of energy management solutions, industrial automation products, and software solutions.

SEIL offers a wide range of products and services that cater to different segments, such as buildings, data centres, infrastructure, and industries. They provide energy efficiency and sustainability solutions, power distribution and automation, home automation, and critical power and cooling.

SEIL and the path to Energy Efficiency

1. Offering energy-efficient solutions:

SEIL offers a range of energy-efficient products and services designed to help businesses reduce their energy consumption and cost.

2. Energy audits: The Company provides energy audit services for businesses, in which an expert team evaluates energy consumption patterns to identify areas for optimisation.

3. Energy monitoring and management:

SEIL provides energy monitoring and management solutions to help businesses track their energy usage and costs in real time, making identifying inefficiencies and adjusting processes accordingly easier.

4. Renewable energy solutions:

Through its renewable energy solutions, SEIL helps businesses transition to clean energy sources, such as solar or wind power SEIL has increased the energy consumption from renewable sources to 1,806 GJ from 1,462 GJ last year

5. Education and awareness campaigns:

SEIL also conducts education and awareness campaigns to promote energy efficiency among businesses and individuals, encouraging them to adopt sustainable practices. Training programs covering Zero carbon & Sustainability and Decent Work Program were conducted covering around 27% of the value chain partners covered.

SEIL has a strong presence in India, manufacturing facilities, research and development centres, and a vast network of partners and distributors. The Company has also actively developed and implemented smart city projects and digital solutions. With a significant focus on innovation, sustainability, and digital transformation, the Company is a trusted partner for businesses and organisations looking to optimise their operations and aim to go carbon neutral.

SEILs unique business model

SEIL stands as a prominent multinational corporation specializing in energy management and automation solutions. Its comprehensive portfolio comprises energy-efficient equipment, electrical distribution and control systems, alongside advanced software applications for energy management. The Company goes beyond by offering training and development programs aimed at enriching the skills and knowledge of customers and partners in the realm of energy management and automation. Central to SEILs business model is the commitment to deliver pioneering, sustainable solutions that not only serve customers innovatively but also champion energy efficiency and environmental responsibility by reducing carbon footprint.

SEIL and Disruptive Digitalisation

SEIL is a leading provider of digital transformation solutions that help businesses in a variety of industries become more efficient and sustainable. Some of the ways SEIL helps with digitalisation include:

1. Providing innovative IoT (Internet of Things) solutions to connect and manage devices, sensors, and systems.

2. Implementing advanced analytics and AI (Artificial Intelligence) technologies that help businesses turn data into insights and make better decisions.

3. Offering cloud-based platforms and services that help enterprises streamline operations and improve agility

4. Providing cybersecurity solutions that help protect businesses from cyber threats and data breaches.

5. Offering training and consulting services to help businesses develop digital skills and optimise operations.

Overall, SEIL is committed to driving digital transformation across industries and helping businesses unlock new performance levels, sustainability, and competitiveness.

SEIL and its response to current market trends

SEIL is a technology company that focuses on developing energy management and automation solutions for businesses. Some current trends in the energy industry include renewable energy, sustainability, energy efficiency, and digitalisation. SEIL has responded to these trends by investing heavily in research and development and developing innovative products and solutions that help customers to go carbon neutral, improve energy efficiency, and incorporate renewable energy sources into their energy mix.

SEIL has been a key player in the renewable energy sector in the country, providing solutions and services that facilitate the adoption of cleaner, sustainable, and more efficient technologies.

SEILs response to the Renewable Energy Transition

SEIL plays a pivotal role in advancing renewable energy adoption in the country and paves the way for a more sustainable future by:

1. Providing energy management and automation solutions: SEIL offers a range of energy management and automation solutions that can help organisations optimise their use of renewable energy sources, such as solar and wind.

2. Supporting the transition to electric mobility: SEILs products and services can enable the deployment of electric vehicle charging infrastructure that runs on renewable energy.

3. Offering renewable energy consulting services: SEIL can assist organisations in evaluating the feasibility of renewable energy projects, identifying suitable technologies, and designing and implementing customised solutions.

4. Developing innovative renewable energy solutions: SEIL is constantly researching and developing new products and solutions that help unlock the full potential of renewable energy sources.

Financial Overview

SEILs financial overview for FY2023 saw a strong performance as the Company reported a revenue of Rs. 1,777.19 crore, marking a growth of 16.13% from the previous year The increasing adoption of intelligent and energy-efficient solutions across various industries fuelled this growth. The Companys focus on cost optimisation and operational efficiencies significantly improved operating margins. SEIL also continued to invest in research and development, driving innovation in the energy management domain. As a result, the Company has established a solid base to continue its growth trajectory in the coming years.

Financial Highlights

(Rs Million)

Profit & Loss Summary	FY2023	FY2022	% Change
Revenues	17,771.86	15,303.39	16.13%
Operating EBITDA	1,799.00	959.84	87.42%
% of Revenue	10.12%	6.27%	385 bps
Profit After Tax	1,236.23	276.22	347.55%
% of Revenue	6.96%	1.80%	516 bps

 

Company Debt	FY2023	FY2022	% Change
Long Term Debt	4,021.79	3,982.16	1.00%
Short Term Debt	733.52	1,077.17	-31.90%
Gross Debt Level	4,755.31	5,059.33	-6.01%
Debt Equity Ratio	3.15	14.01	-77.53%

 

Key Ratios	FY2023	FY2022	% Change
Debt Equity Ratio	3.15	14.01	-77.53%
ROCE	23.81%	12.69%	87.53%
ROE	132.07%	139.26%	-5.16%

Business Outlook

The Company has a positive business outlook driven by several factors. The Company is well-positioned to benefit from the growing demand for sustainable and energy-efficient solutions as more organisations prioritise their environmental and social responsibility.

The Company is firmly committed to sustainability and innovation, allowing it to stay competitive in the rapidly evolving energy market. One of the key growth drivers for Schneider Electric is the increasing adoption of renewable energy sources, including solar and wind power. The Company has a strong presence in this sector and offers various solutions to help customers integrate renewable energy into their operations.

Another growth area for the Company is the digitalisation of energy management and automation. With its expertise in IoT, analytics, and cloud computing,the Company is well-positioned to develop and deliver innovative solutions that help customers optimise their energy usage, reduce costs, and increase efficiency. With a strong team of skilled professionals and a continued focus on innovation, SEIL is well-equipped to lead the industry towards a cleaner, more sustainable future.

As an emerging market, India presents the Company with significant growth potential for sustainable and energy-efficient solutions. Additionally, with the Indian Governments efforts to expand the countrys infrastructure and promote sustainable development, SEIL is well-positioned to seize new opportunities in the industry. SEILs commitment to sustainability will likely resonate with customers and stakeholders and further enhance the Companys reputation and market position.