Global Economy:
Global economic growth slowed to 3.4% in 2022 compared to 6.3% in 2021 due to Russian
Ukraine war, high inflation, pandemic slowdown, higher interests rates, global liquidity
crunch, trade and energy prices, global equities saw a substantial value drawdown. The
S&P GSCI TR index reflected declines in various commodities, including crude oil and
natural gas.
The difficulties of 2022 resulted in reduced expenditure, slowed trade, and higher
energy costs.
| Inflation: |
Global inflation was 8.8% in 2022, among the highest in last 10 years. |
| Federal Reserve: |
The Federal Reserve increased its benchmark interest rate to its highest in 15 years. |
| Consumer Prices: |
US consumer prices increased about 6.5% in 2022, which was the largest increase in 40
years. |
| Commodities: |
Primary commodity prices declined 28.2 percent between August 2022 and February 2023.
The decrease was led by energy commodities, down 46.4 percent. |
| Crude Oil: |
Crude oil prices retreated by 15.7 percent between August 2022 and February 2023 as
the slowing global economy weakened demand. China experienced its first annual decline in
oil consumption this century and European natural gas prices declined by 76.1 percent amid
lower consumption and high storage levels. |
| GDP Performance of major economies: |
|
| China: |
Reported GDP growth of 3.0% in 2022 compared to 8.4% in 2021. |
| United States: |
Reported GDP growth of 2.1% in 2022 compared to 5.9% in 2021. |
| United Kingdom: |
Reported GDP growth of 4.0% in 2022 compared to 7.6% in 2021. |
| Germany: |
Reported GDP growth of 1.8% in 2022 compared to 2.6% in 2021. |
| Italy: |
Reported GDP growth of 3.7% in 2022 compared to 7.0% in 2021. |
| Japan: |
Reported GDP growth of 1.1% in 2022 compared to 2.1% in 2021. |
Global economic growth is expected to fall from 3.4 % in 2022 to 2.9 % in 2023 due to
the rise in interest rates, inflation and Russias war in Ukraine continue to weigh on
economic activity. The rapid spread of COVID-19 in China dampened the growth in 2022, but
the recent reopening of boundaries has paved way for a faster-than-expected recovery.
Global inflation is expected to fall from 8.8 % in 2022 to 6.6 % in 2023, still above
pre-pandemic (2017-19) levels of about 3.5 percnt.
On the positive side, the reopening of Chinas economy, a stronger boost from pent-up
demand in numerous economies or a faster fall in inflation are plausible.
On the downside, severe health outcomes in China could hold back the recovery, Russias
war in Ukraine could escalate, and tighter global financing costs could worsen debt
distress. Financial markets could also suddenly reprice in response to adverse inflation
news, while further geopolitical fragmentation could hamper economic progress. (Source:
IMF data)
Indian Economy:
Despite slowdown in global economy, India economic growth in FY23 as per IMF is
estimated at 6.8% as compared to 9.1% in FY22 due to geopolitical tensions, tightening of
financial conditions worldwide and decreasing external demand. India is on track to become
the fastest-growing economy in the world. India has set an ambitious target of becoming a
$ 5 trillion economy by 2025 and more than double its annual exports to $ 2 trillion by
2030 aided by rise in value added manufactured products and services exports.
In FY23, India overtook UK to become the fifth largest global economy, India emerged as
the second fastest-growing G20 economy and India surpassed China to become the worlds
most populous nation.
Indias exports, which include both goods and services, reached US$750 billion in FY
2023 due to the governments vigorous policy implementation. GST revenue increased by
21.4% year over year to $18.1 trillion in FY 2023.
Union Budget 2023-24 aimed at strengthening Indias economic status in the 75th
year of Indias independence. The Vision for Amrit Kaal was articulated in the Budget
which centred around opportunities for citizens with focus on youth, growth & job
creation and strong & stable macro-economic environment. Seven priorities, termed
Saptarishi, were adopted to guide the country towards Amrit Kaal, thus providing a
blueprint for an empowered and inclusive economy. The priorities being, inclusive
development, reaching the last mile, infrastructure & investment, unleashing the
potential, green growth, youth power and financial
As per IMF, Indian economy is projected to grow at 5.9% in FY24 after having grown at
an estimated 6.8% in FY23, to be among the fastest growing major economies. Indias
economy will rise because of strong domestic demand, which will be aided by the
governments ongoing push for infrastructure expenditure. However, the geopolitical
environment, energy price volatility, and external difficulties of the global economic
slump may keep the Indian economy on guard
Indian Power Sector Overview:
Indias power sector has undergone a remarkable transformation, aimed at providing
reliable, affordable, and sustainable energy to its people. Over the last 9 years,
significant strides have been made in enhancing power generation capacity, expanding
access to electricity, promoting renewable energy, and implementing innovative policies.
With an installed generation capacity of more than 416 GW as of March 31, 2023, India
is currently the third-largest generator of electricity in the world. With a compound
annual growth rate (CAGR) of 7.7% over the previous thirteen years, Indias installed
power capacity has increased significantly. Due to the nations strong economic growth and
the governments effort to give power to everyone, the demand for energy has increased
significantly during the past three years.
(Source: CEA, Power Ministry)
Indian Renewable Sector Overview:
Our Honble Prime Minister, Shri Narendra Modi, announced Indias aim of achieving net
zero emissions by 2070 at Glasgow.
• The five core components of Indias climate response were first proposed by
India at COP26:
• India will take its non-fossil energy capacity to 500 GW by 2030.
• India will meet 50% of its energy requirements from renewable by 2030.
• India will reduce the total projected carbon emissions by one billion tonnes
from now till 2030.
• By 2030, India will reduce the carbon intensity of its economy by less than 45%.
• By the year 2070, India will achieve the target of Net zero
As per the updated Nationally Determined Contributions (NDC), India now stands
committed to achieve about 50 percent cumulative electric power installed capacity from
non-fossil fuel-based energy resources by 2030. So far, a total of 167.75 GW Renewable
Energy capacity has been installed as on 31.12.2022 in the country. Further, projects of
78.75 GW capacity are under various stages of implementation and 32.60 GW capacity are
under various stages of bidding.
India stands 4th globally in Renewable Energy Installed Capacity, 4th
in Wind Power capacity & 4th in Solar Power capacity as per REN21
Renewables 2022 Global Status Report.
The installed Renewable energy capacity (including large hydro) has increased from
76.37 GW in March 2014 to 167.75 GW in December 2022, i.e., an increase of around 2.20
times. Total Solar Power Capacity in the country has increased from 2.63 GW in March 2014
to 63.30 GW in December 2022, i.e., an increase of 24.07 times. (Source: MNRE Annual
Report 2022-23)
Indian Green Hydrogen Sector Overview:
India has set its sight on becoming energy independent by 2047 and achieving Net Zero
by 2070. To achieve this target, increasing renewable energy use across all economic
spheres is central to Indias Energy Transition. Green Hydrogen is considered a promising
alternative for enabling this transition. Hydrogen can be utilized for long-duration
storage of renewable energy, replacement of fossil fuels in industry, clean
transportation, and potentially also for decentralized power generation, aviation, and
marine transport.
Hydrogen is a flexible energy source that can be applied to a variety of energy system
applications, such as the integration of renewable energy sources, clean transportation,
and industrial. The government believes by 2030, hydrogen costs will be down by 50%.
Hydrogen demand is expected to see a five-fold jump to 28 MT by 2050 where 80% of the
demand is expected to be green in nature. Indian steel mills, fertiliser factories, and
oil refineries are the main consumers of hydrogen. Most of the need is now satisfied by
grey hydrogen generated from fossil fuels. Green hydrogen is now more practical due to the
falling cost of renewable electricity because of the greater deployment of renewable power
capacity. (Source: National Green Hydrogen Mission)
Growth Drivers:
In the upcoming years, the need to move power from massive renewable energy projects
will be the key factor driving the growth of the transmission industry.
India is on track to achieve 500 GW Power Target from Renewable resources by 2030,
Installed Capacity for Renewable Power is 167.75 GW and projects already awarded/
execution stage are to the tune of 111.35 GW Power.
In 2022, Indias renewable energy sector is expected to boom with a likely investment
of US$ 15 billion, as the government focuses on electric vehicles, green hydrogen, and
manufacturing of solar equipment.
In the fiscal year 2022-2023, India added 14,625 circuit kilometres and 75,902 MVA of
new transformation capacity. To properly transmit power from areas with high amounts of
renewable energy to the rest of the country, the power transmission sector will need even
more capacity.
The push by the government to go green in the automotive industry will result in a
tremendous demand for electrical power for charging stations. It will result in increased
demand for distribution transformers, generator transformers, and transmission equipment.
The government has identified 10 potential states that could be the key enablers in
manufacturing green hydrogen in the country, the states are Karnataka, Odisha, Gujarat,
Rajasthan, Maharashtra, Tamil Nadu, Andhra Pradesh, Kerala, Madhya Pradesh and West Bengal
- are likely to have green hydrogen or ammonia manufacturing zones or clusters, helping
India kickstart its National Green Hydrogen Mission in its initial years.
Taking the lead in Indias big leap towards green hydrogen manufacturing, the Gujarat
cabinet clears 1.99 lakh hectare land for green hydrogen projects (Source : MNRE Annual
Report 2022-23, Ministry of Power).
Technology focus:
The advantages of high-voltage direct current (HVDC) transmission over conventional
high-voltage alternating current (HVAC) technologies are well established for
long-distance, point-to-point power transfers. HVDC has also been deployed in subterranean
and submarine applications where overhead lines are impractical and where HVAC has higher
electrical losses. HVDC also has the unique capability to connect asynchronous grids; this
capability may have more value in the future with greater numbers of microgrids. HVDC
technologies can also provide extremely rapid stability control, power flow control, and
the ability to segment parts of the power system-all of which can enhance the grids
flexibility, reliability, and resilience. In HVDC, losses are 50% lower compared to HVAC.
( In Lakhs)
| Particulars |
Standalone |
Consolidated |
|
FY2023 |
FY2022 |
FY2023 |
FY2022 |
|
|
% |
|
% |
|
% |
|
% |
| Net Sales |
127094.86 |
92.66% |
109595.79 |
96.02% |
131160.53 |
94.42% |
112524.39 |
96.05% |
| Service Income |
1364.30 |
0.99% |
1332.52 |
1.17% |
2148.73 |
1.55% |
1641.64 |
1.40% |
| Other Operating Income |
7526.24 |
5.49% |
1329.55 |
1.16% |
4775.24 |
3.44% |
2008.61 |
1.71% |
| Other Income |
1186.35 |
0.86% |
1885.95 |
1.65% |
816.5 |
0.59% |
980.81 |
0.84% |
| Total Income |
137171.75 |
100.00% |
114143.81 |
100.00% |
138901.00 |
100.00% |
117155.45 |
100.00% |
| Raw Material Consumed |
104030.88 |
75.84% |
92037.58 |
80.63% |
102356.72 |
73.69% |
92397.27 |
78.87% |
| Purchase of Stock in trade |
4942.37 |
3.60% |
- |
0.00% |
4942.37 |
3.56% |
- |
0.00% |
| Employee Cost |
3807.06 |
2.78% |
2987.33 |
2.62% |
4117.85 |
2.96% |
3244.02 |
2.77% |
| Other Expenses |
12629.3 |
9.21% |
11265.25 |
9.87% |
14527.77 |
10.46% |
13126.49 |
11.20% |
| Total Expenses |
125409.61 |
91.43% |
106290.16 |
93.12% |
125944.71 |
90.67% |
108767.78 |
92.84% |
| EBIDTA |
11762.14 |
8.57% |
7853.65 |
6.88% |
12956.29 |
9.33% |
8387.67 |
7.16% |
| Finance Charge |
4663.25 |
3.40% |
4226.63 |
3.70% |
4796.79 |
3.45% |
4358.71 |
3.72% |
| Depreciation |
2257.16 |
1.65% |
1530.91 |
1.34% |
2452.67 |
1.77% |
1698.92 |
1.45% |
| Profit Before Taxes & Exceptional Items |
4841.73 |
3.52% |
2096.11 |
1.84% |
5706.83 |
4.11% |
2330.04 |
1.99% |
| Exceptional Item |
- |
- |
- |
- |
- |
- |
- |
- |
| Share in Profit/ Loss of Associates |
- |
- |
- |
- |
- |
- |
- |
- |
| Profit Before Tax |
4841.73 |
3.52% |
2096.11 |
1.84% |
5706.83 |
4.11% |
2330.04 |
1.99% |
| Taxation |
1133.27 |
0.83% |
792.66 |
0.69% |
1472.31 |
1.06% |
902.05 |
0.77% |
| PAT |
3708.46 |
2.69% |
1303.45 |
1.15% |
4234.52 |
3.05% |
1427.99 |
1.22% |
| Other Comprehensive Income |
14.20 |
0.01% |
(3.25) |
0.00% |
17.41 |
0.01% |
(3.16) |
0.00% |
| Total Comprehensive Income for the year |
3722.66 |
2.70% |
1300.20 |
1.15% |
4251.93 |
3.06% |
1424.83 |
1.22% |
| Profit attributable to Owners of Company |
- |
- |
- |
- |
4087.47 |
- |
1395.07 |
- |
| Non-Controlling Interest |
- |
- |
- |
- |
164.46 |
- |
29.76 |
- |
Standalone
Total income of the Company has increase to 1,37,171.75 Lakhs in financial year
2022-2023 from 1,14,143.81 Lakhs in financial year 2021-2022. Total Profit before tax
for the financial year 2022-2023 is 4,841.73 lakhs as against the total profit before
tax of 2,096.11 lakhs for the previous financial year 2021-2022. Profit after tax for
financial year 2022-2023 stood at 3,708.46 Lakhs compared to Profit after tax 1303.45
Lakhs during financial year 2021-2022.
Consolidated
Total income of the Company has increase to 1,38,901 lakhs in financial year
2022-2023 from 1,17,155.45 lakhs in financial year 2021-2022. Total Profit before tax
for the financial year 2022-2023 is 5,706.83 lakhs as against the total Profit before
tax of 2,330.04 lakhs for the previous financial year 2021-2022. Profit after tax for
financial year 2022-2023 stood at 4,234.52 lakhs compared to Profit after tax 1,427.99
Lakhs during financial year 2021-2022.
CAVEAT
This section of the Annual Report has been included in adherence to the spirit
enunciated in the Code of Corporate Governance approved by the Securities and Exchange
Board of India. Shareholders and Readers are cautioned that in the case of data and
information external to the Company, though the same are based on sources believed to be
reliable, no representation is made on its accuracy or comprehensiveness. Further, though
utmost care has been taken to ensure that the opinions expressed by the management herein
contain its perceptions on most of the important trends having a material impact on the
Companys operations, no representation is made that the following presents an exhaustive
coverage on and of all issues related to the same. The opinions expressed by the
management may contain certain forward-looking statements in the current scenario, which
is extremely dynamic, and increasingly fraught with risk and uncertainties. Actual
results, performances, achievements or sequence of events may be materially different from
the views expressed herein. Readers are hence cautioned not to place undue reliance on
these statements, and are advised to conduct their own investigation and analysis of the
information contained or referred to in this section before taking any action with regard
to their own specific objectives. Further, the discussion following herein reflects the
perceptions on major issues as on date and the opinions expressed here are subject to
change without notice. The Company undertakes no obligation to publicly update or revise
any of the opinions or forward-looking statements expressed in this report, consequent to
new information, future events, or otherwise.
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