My dear fellow shareowners,
It gives me pleasure to share with you the highlights of our Company''''s performance for the financial year 2016-17.
Reliance Power''''s projects have demonstrated another year of consistent operational performance. Our flagship, 3,960 MW Sasan Ultra Mega Power Project (Sasan UMpP), the world''''s largest integrated power plant cum coal mine, continued to deliver "Best in Class" operating performance in both coal and power sectors. Similarly, our other generating plants viz. 1,200 MW coal-based Rosa Power Plant located in Uttar Pradesh, 600 MW Butibori Power Plant located in Maharashtra, 40 MW Solar PV plant located in Rajasthan and 45 MW Wind power project located in Maharashtra, also delivered strong operating performance. The 100 MW Solar Thermal plant, located adjacent to the Solar PV plant in Rajasthan, achieved 133 MW of highest load during the year.
Driving and sustaining operational and business excellence continued to be the focus of the year and we plan to build further on this platform to raise the levels of excellence.
While your Company continues to deliver robust operational and financial performance, it is committed towards the society and environment through its various Environment, Health & Safety (EHS) and CSR initiatives.
The Company''''s plants have received recognition in the form of number of awards and accreditations for achieving all-round operational excellence as well as for achievements in Social Responsibility, Health, Environment and Safety initiatives during the year.
The highlights of the Company''''s consolidated financial performance for the year are:
- Total income of Rs, 10,892 crore as compared to Rs, 10,622 crore in the previous year,
- Net profit of Rs, 1,104 crore as compared to Rs, 895 crore in the previous year,
- Earnings Per Share (EPS) of Rs, 3.94 as compared to Rs, 3.19 in the previous year.
The audited Financial Statements of the Company for the year 2016-17 have been drawn up in compliance with the requirements of the Companies (Indian Accounting Standards) (Ind-AS) Rules, 2015.
Your Company has been delivering consistent profits, cash flows and enjoys a well-capitalized balance sheet with one of the lowest debt to equity ratios in the industry.
Your Company''''s risk management initiatives, with respect to Samalkot Gas-based Power Project, Tilaiya UMPP and Krishnapatnam UMPP are also progressing well. Pursuant to the Memorandum of Understanding signed with Bangladesh Power Development Board (BPDB) in June 2015, to set up a 3,000 MW of Combined Cycle Power Project (in Phases) and a LNG terminal in Bangladesh, your Company achieved a major milestone when it initialled the Project Agreements to set up the first phase of 750 MW Combined Cycle gas-based power project at Meghanaghat near Dhaka and a LNG receiving terminal at Kutubdia Island near Chittagong.
The Company plans to pursue value accretive growth through a mix of projects under development, aggregating to 10,000 MW of power generation projects, after putting relevant viability drivers in place.
Your Company has always maintained the highest governance standards and practices by adopting, as is the norm for all constituent companies of the Group, the "Reliance Group -Corporate Governance Policies and Code of Conduct". These Policies and Code prescribe a set of systems, processes and principles, which conform to the highest international standards and are reviewed periodically to ensure their continuing relevance, effectiveness and responsiveness to the needs of investors, both local and global, and all other stakeholders.
Our portfolio of projects requires substantial use of natural resources such as land, water and minerals. We take adequate care in designing our power generation plants in a manner that optimizes the utilization of land, thereby bringing down the aggregate land requirement and minimizing the potential for displacement of local communities. We are also adopting cleaner technologies related to power generation that reduce the consumption of fuel and water required for plant operations, thereby conserving precious natural resources and contributing to a greener and healthier environment. Sasan UMPP has the distinction of being one of the most efficient super critical thermal plants in the country in terms of fuel and water consumption.
Our projects are operating in areas which are currently in development phase and we continue to contribute towards improving the quality of life of the communities living in these areas. Indeed, participatory development-oriented approach that strengthens our bond with the local population is at the core of our business model.
As part of our initiatives towards discharge of our Corporate Social Responsibilities (CSR), we have made significant outlays in healthcare, education and enhancing livelihood opportunities for the communities.
Our founder, the legendary Shri Dhirubhai Ambani, gave us a simple mantra: to aspire to the highest global standards of quality, efficiency, operational performance and customer care. We remain committed to upholding that vision.
Thank you, shareowners, for your continued support in our journey of delivering consistent, competitive, profitable and responsible growth.
Anil Dhirubhai Ambani Chairman