Sterlite Power completes merger of subsidiary and announces consolidated PAT of INR 942 Cr for FY 2020

Hyderabad/New Delhi: Sterlite Power, a leading global power transmission player, has announced the completion of merger of its wholly owned subsidiary Sterlite Power Grid Ventures Ltd. with the parent entity. With this merger, the company further strengthens its position in the marketplace by integrating operations and streamlining the corporate structure. Post the merger, Sterlite Power has announced the audited annual results for Financial Year 2020 recording outstanding growth in revenue and profit.

Key Financial Highlights

  • Consolidated Revenue up by 44% y-o-y at INR 5,158 Cr
  • Consolidated EBITDA up by 434% y-o-y at INR 2,406 Cr
  • Consolidated Profit After Tax up by 280% y-o-y at INR 942 Cr
  • ROCE of 28%

Sterlite Power is increasingly focused on integrating renewable energy (RE) to the grid and has been awarded vital projects connecting the national grid to clean and green energy. The company has added several Inter-State Transmission System (ISTS) projects to its portfolio in FY20 including the Lakadia-Vadodara Transmission Project Ltd. (LVTPL) which is part of India’s Green Energy Corridor (GEC). The company also commissioned its first project in Brazil (Arcoverde) 28 months ahead of schedule, which was designed to evacuate renewable wind energy. Through its unique asset monetization strategy, the company has realized additional liquidity of INR Rs 2450 Cr from the monetization of three projects in India (NRSS 29, OGPTL and ENICL) and three projects in Brazil (Pampa, Arcoverde and Nova Estado).

Apart from achieving significant milestones in terms of project wins, execution, and asset monetisation, it has been an exceptional year for the company in terms of prestigious global and national recognitions:

Winner of ‘Construction Project of the Year’ at the S&P Global Platts Energy Awards 2019 for NRSS-29 project in Kashmir.

Gold Winner in the mega-sized project category at the IPMA Global Project Excellence Awards 2019 for NRSS-29 project.

Economic Times (ET) Innovation Awards for Skyrob™ – a semi-autonomous robot developed in-house to ensure safe OPGW stringing under live-line conditions.

Featured as case studies by India’s premier management institutes: IIM Ahmedabad and ISB Hyderabad.
Commenting on company’s performance, Mr. Pratik Agarwal, Managing Director, Sterlite Power, said, “We are driven by our core purpose to enable access to reliable power while minimizing the impact on climate change. As the world makes rapid transition towards clean energy, and India targets 450GW of renewable energy by 2030, we will contribute towards this noble cause by creating the required transmission infrastructure so that green energy can reach the most underserved households.”

As humanity adapts to the new normal defined by the pandemic, access to uninterrupted power has become the lifeline for society and economy. With the added urgency to avert the bigger crisis of climate change, Governments across the globe have accelerated the transition from fossil fuel to clean energy. In this new era, Sterlite Power is playing a critical role by enabling access to reliable power with an increasing focus on integrating renewables to the grid.

With its unique asset monetization strategy and strong project execution capabilities, the company has delivered strong financial results. Sterlite Power’s Annual Report 2019-20 can be accessed here.

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Neel Achary is the editor of Business News This Week. He has been covering all the business stories, economy, and corporate stories.