Financial Accounting Project Report

Group-6 Sector-Energy
RollNO Name Company 1 Company 2
P24018 PRADNYA PATIL ADANI GREEN Hitachi Energy
ENERGY
P24022 ANEESH AHLUWALIA Reliance power Adani energy solution
P24032 DIKSHANT KUMAR Cesc ltd JSW energy
P24043 SHARAN R Adani power Jai prakash power
ventures ltd
P24056 SINGH PRAVEEN VINAY Torrent power Suzlon energy
P24067 SHYAMAL MAHENDRA NTPC Tata power
NAVNAGE
Table of Contents
1. INTRODUCTION
2. INDUSTRY ANALYSIS
3. ADANI GREEN ENERGY
4. HITACHI ENERGY
5. RELIANCE POWER
6. ADANI ENERGY SOLUTION
7. CESC LTD
8. JSW ENERGY
9. ADANI POWER
10. JAI PRAKASH POWER VENTURES LTD
11. TORRENT POWER
12. SUZLON ENERGY
13. NTPC
14. TATA POWER
15. TABULAR FOR ALL COMPANIES RATIO
16. CONCLUSION
1.INTRODUCTION
Energy sector is an important infrastructural component for India, and the different modes of
power generation-from thermal, solar, hydro, and wind energy-would constitute a large
diversified space. The private sector companies constitute the majority in the electricity
generation and distribution industry through these diversified sources. Historically, thermal
power with the mediums of coal, oil, and natural gas has constituted the bulk of energy
sources, but in the recent past, renewable sources such as solar and hydro have been
encouraged by changing environmental concerns and govt. incentives.
For the country, power demand is gaining rapidly on both residential and industrial fronts.
This is not only because of the population growth but also because of the increase in urban
population, as a larger number of families have started relying on sustainable power. On the
other hand, industry has grown due to manufacturing, infrastructure development, and new
digital energy consumption. As part of the drive for rapid industrialization under auspices like
"Make in India," power demand has increased more sharply across industries like steel,
cement, and textiles.
More critical for India in trying to correct its energy mix away from fossil fuel dependence is
renewable energy, particularly solar and hydro. Private investment drives this growth because
they are focused on renewable projects, empowered by policies that are pro-sustainability
and, therefore, pro-energy efficiency. India's ambitious renewable energy targets of 500 GW
by 2030 are likely to give the energy sector a new high. The then ever-increasing demand for
electricity along with the preference for a cleaner form of energy has provided a massive
opportunity to private players in this industry.

2.INDUSTRY ANALYSIS (SECTOR ANALYSIS)

India, the world’s most populous nation, is also the third largest producer of electricity
globally, with installed generation capacity (utilities) of nearly 442 GW as on March 31,
2024. India’s thermal power generation capacity, which supplies base load power
requirements, is primarily based on coal and lignite, while gas-based capacity is constrained
by local unavailability and high price of fuel. India has an abundance of coal reserves, which
helps improve the nation’s energy security and reduce reliance on imports. Despite a growing
focus on renewable energy, thermal power continues to act as the bedrock for serving India’s
energy needs. It is crucial for meeting base load requirements and providing the balancing
energy output to help mitigate the inherently intermittent nature of renewable energy, which
is accentuated further due to its quickly growing penetration. Strong economic growth with
increasing urbanisation has resulted in a substantial increase in consumption of electricity by
the domestic sector, expanding its share in the consumption basket. On the other hand, the
share of the agricultural sector has dropped. As industrial activity, including both
infrastructure and manufacturing grows powered by the government’s policy emphasis, the
need for base load power will remain strong. From 2019 to 2023, the growth in clean energy
was twice that of fossil fuels. The extensive deployment of clean energy technologies during
this period substantially limited the increase in fossil fuel demand, providing the opportunity
to accelerate the transition away from them this decade.
Long-term economic development of a nation, which leads to improved prosperity and well-
being of its citizens, necessitates abundant availability of reliable and affordable power
supply, which is a critical enabling resource for all economic activities. India is focusing on
strengthening the power sector through various policies, targets, and reforms to ensure that
both generation capacity and the transmission & distribution infrastructure are augmented in
a timely manner, to be able to support the nation’s growth aspirations while meeting long-
term sustainability goals. The Indian government’s estimates project a 6.2% compounded
annual growth rate in power demand, which is set to double by FY 2031-32 as compared to
the all-India demand in FY 2020-21. Key drivers of this projected growth are rising
urbanisation and consumption of power by domestic and commercial users, growth impetus
being given to the manufacturing sector through various production-linked incentives, higher
demand for irrigation, railway traction, etc. On the other hand, one of the major policy thrusts
of the Government, a reduction in Transmission & Distribution losses, which is projected to
improve from 16.5% in FY 2021-22 to 12.6% in FY 2031-32, will partially temper the
translation of growth in energy requirements to overall electricity demand. While India is on
track to become the world’s third-largest economy, its per capita power consumption remains
low at 1,331 kWh in FY 2022-23. As the fruits of economic development spread, per capita
power consumption is expected to grow rapidly led by increase in household appliance use,
shift to electric mobility, growing industrialisation and mechanisation, and growth in
infrastructure.

India's PEAK POWER DEMAND

243
216
203
184 190
177
160 164
148 153
136

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Imported coal prices, which had shot up following disruptions in natural gas supply
consequent to the war in Ukraine, have started to come down as gas supply has improved.
Indonesia is expected to cut its production to 710 MT in 2024, as compared to a record output
of 775 MT in 2023. Lower gas prices amidst an oversupply in the global gas markets will
create negative pressures on Indonesia's lower calorific value coal demand. This trend will be
supported further by China’s resumption of coal imports from Australia and high inventories
due to improved domestic production of coal in the country.
3. ADANI GREEN ENERGY LIMITED
ABOUT ADANI GREEN ENERGY LIMITED
Adani Green is a premier renewable energy company, distinguished as India’s largest and
fastest-growing pure-play renewable independent power producer and the world’s second-
largest solar PV developer. Headquartered in Ahmedabad, Adani Green Energy commenced
operations in 2015, focussing on developing, owning, and operating utility-scale grid-
connected solar, wind, and hybrid renewable energy plants and hydro-pumped storage projects.
Responding to the nation’s urgency of transitioning to sustainable energy sources and
decarbonisation, they have committed large-scale investments in developing solar, wind, and
solar-wind hybrid renewable power plants. Adhering to government regulations outlined in the
Electricity Act, Grid Code, and state or central regulatory frameworks, they primarily serve
B2B customers, central and state utilities, and distribution companies (DISCOMs).

MESSAGE FROM CHAIRMAN MR GAUTAM ADANI

For the Adani Group, 2023 was a year unlike any other. In the face of an unprecedented
challenge and widespread scrutiny, its journey epitomised the essence of the spirit that has
always defined company and has allowed to turn setbacks into comebacks consistently. In
2023, Adani Group showed its unbreakable spirit and proved that challenges could not weaken
them; instead they became a testament to emerge stronger than ever. Group faced baseless
accusations made by a U.S.-based short-seller that threatened to cast a shadow on its reputation
and decades of hard work. They were, therefore, faced with a multi-dimensional crisis. Despite
successfully raising RS 20,000 crore through the FPO, they made the extraordinary decision to
return the proceeds. This historic move underscored unwavering dedication to investors and
commitment to ethical business practices. International investors like GQG Partners (U.S.),
TotalEnergies Limited (Europe), IHC and QIA (Middle East), and even the U.S. Development
Finance Corporation (DFC) stood firmly by Adani Group’s side.
The nation’s infrastructure spending has tripled in the past decade, with breakneck progress in
highways, railways, and electrification. This infrastructure push, combined with policies like
Make in India and Production-Linked Incentive Schemes, will drive investment across vital
sectors – roads, airports, ports, power, railways, and data centers, each of these are core
businesses for the Adani Group. As India’s leading infrastructure player, group see a clear
narrative of immense and predictable growth. Adani Green became the proud sponsor of
London Science Museum’s stunning green energy gallery that looks at the past, present and
future of energy systems. Given the RE growth potential, AGEL & APL revised FY 2029-30
target from 45 GW to 50 GW. In the year, they added 2.8 GW, 15% of India’s total renewable
capacity addition. Park at Khavda within 12 months of breaking ground.
In terms of financial performance, Adani Group achieved an unprecedented milestone,
recording the highest-ever EBITDA of RS 82,917 crore (roughly USD 10 billion), a remarkable
surge of 45%. This exceptional financial performance drove PAT to a record high of RS 40,129
crore, marking a substantial 70.8% growth. Net Debt to EBITDA further fell to 2.2x from 3.3x
over the past year, giving additional headroom for future growth. All of this resulted in an all-
time-high levels of liquidity for the Group with a cash balance of RS 59,791 crore. These
consistent and improved metrics demonstrate highly stable infrastructure platform, and led to
a series of rating and outlook upgrades. Three of portfolio companies – Ambuja, ACC, and
APSEZ, are now AAA rated.
MANAGEMENT DISCUSSION & ANALYSIS

The global economy displayed remarkable resilience in 2023, experiencing a consistent but
slow recovery with regional disparities. Global growth held steady at a modest growth rate of
3.2% in 2023. However, underlying risks and vulnerabilities persist due to escalating
geopolitical conflicts, sluggish recovery in China, volatility in energy and food markets,
prolonged higher interest rates and inflation. Furthermore, the Red Sea crisis has caused the
biggest diversion of global trade in decades, leading to delays and heightened expenses for
shipping lines Financial Statements that are avoiding a waterway that normally handles 12%
of the world's maritime trade. As the crisis continues to unfold, its far-reaching impact on global
supply chains has become increasingly evident. Despite these challenges, indications of stable
growth, robust performance of the United States and several large emerging market and
developing economies, along with inflation returning to target levels in advanced economies,
indicate a diminished risk of a severe economic downturn. Global inflation continues to decline
at a faster pace from 8.7% in 2022 to 6.8% in 2023. Global headline inflation is expected to
decrease to 5.9% in 2024 and to 4.5% in 2025.The prolonged Russia-Ukraine conflict has the
potential to further dampen the overall economic outlook of the European Union. Additionally,
an escalation in the Middle East crisis could impact oil and commodity prices and the global
supply chain. Regional conflicts and geopolitical unrest could elevate energy prices, reduce
energy supply, or raise the risks of supply disruptions, contributing to additional geo-economic
fragmentation and posing downside risks for the global economy. However, positive factors,
such as stronger-than expected economic performance of the US and several large emerging
market and developing economies, economic stimulus in China, the resilience of Europe amid
the ongoing war, easing of supply chain bottlenecks and faster disinflation will bolster the
outlook of the global economy.
Amid a challenging global economic landscape and deteriorating geopolitical conditions, India
has retained its position as the fifth-largest economy in the world and is poised to persist as the
world's fastest-growing major economy. Its GDP growth remained buoyant at 7.6% in FY
2023-24 as against 7% in FY 2022-23, supported by robust domestic demand, moderate
inflation, a stable interest rate environment, and strong foreign exchange reserves. As per the
Second Advance Estimates of National Income, 2023-24, a double-digit growth rate of 10.7%
in the Construction sector and an 8.5% growth rate in the Manufacturing sector have
contributed to the GDP growth in FY 2023-24. Moreover, India’s IIP growth during April-
February FY 2023-24 stood at 5.9%, up from 5.6% in the corresponding period in the previous
year. Manufacturing sector output increased by 5.4% Y-o-Y, while the Electricity sector grew
by 6.9% during April- February FY 2023-24. The Interim Budget 2024-25 lays the foundation
for achieving the vision of a developed and self-reliant India by 2047. The budget places a
strong emphasis on sustainable development, aligning with the target of achieving 'net zero'
emissions by 2030. The National Green Hydrogen Mission witnessed a significant boost with
an increased allocation of RS 600 crore, doubling the allocation compared to the previous
year. Additionally, a substantial sum of RS 8,500 crore has been earmarked for the development
of solar power grid infrastructure. At the heart of the energy drive in the Interim Budget lies
the Pradhan Suryodaya Yojana (PMSY), aimed at installing rooftop solar power systems in one
crore households. This initiative will enable these households to obtain up to 300 units of free
electricity each month. With these measures, the increased budgetary allocation is poised to
foster the development of a robust ecosystem for renewable energy, marking a significant stride
towards sustainable and inclusive growth.
In 2023, the total global energy demand growth accelerated. Despite this, the increase in CO2
emissions was lower at 410 million tonnes (MT) as compared to a 490 MT increase in 2022
driven by the continued expansion of solar photovoltaics (PV), wind, nuclear power and
electric cars. This helped the world avoid greater use of fossil fuels. Without clean energy
technologies, the global increase in CO2 emissions over the last five years would have been
three times larger. In 2023, the annual addition of renewable capacity to energy systems
worldwide increased by almost 50%, reaching nearly 510 GW. This is the fastest growth rate
in the past two decades with solar PV accounting for nearly three-quarters of additions. This
momentum is expected to continue through the decade aligned with the pledge taken by several
countries at COP28 of tripling renewable energy capacity to 11,000 GW by 2030.
India holds the third position in the ‘Renewable Energy Country Attractiveness Index’ released
by EY. In 2023, India’s power demand peaked at an unprecedented 243 GW. Over the last
decade, India’s peak power demand grew by over 5% annually. This is further expected to grow
with India projected to experience the largest increase in energy demand growth of any country
globally till 2030 driven by endeavours to illuminate every household including in the remotest
village. India has an installed power generation capacity of 442 GW as on March 31, 2024. Out
of this, 199 GW is non-fossil fuel capacity, representing 45% of the total capacity. Renewable
energy continued to dominate India’s power capacity addition with about 71% share in FY
2023-24. The 500 GW non-fossil fuel capacity target by 2030 has become even more important
for the nation in view of the recent developments resulting into renewed impetus on energy
security as well as affordable and clean energy. To achieve this, the government has charted a
goal of tendering 50 GW of renewable energy bids every year. Every year up to FY 2027-28.
The push towards adoption of green energy open access (GEOA), general network access
(GNA), revised renewable purchase obligation (RPO) targets for designated customers,
transparent Going forward, coordinated policy action alongside wider industry efforts will be
crucial to ensure that India reaches its 2030 target. Competitive bidding process, schemes for
developing large renewable parks.
Adani Green Energy Limited is India's largest renewable power producer with 10.9 GW of
operational renewable energy capacity as on March 31, 2024. The Company is committed to
its target of ramping renewable capacity from 10.9 GW to 50 GW by 2030, 10% of India’s
renewable capacity target. At 50 GW, Adani Green will help avoid carbon emissions of 81.5
million tonnes per year. Aligned with the country’s needs, Adani Green plans to continue setting
up solar, wind and hybrid plants with a further focus on the deployment of large-scale energy
storage solutions. Company has grown its operating renewable energy capacity at a CAGR of
41% over the last five years outpacing India’s CAGR of 13% over the same period. The
Company’s EBITDA from power supply has grown at a CAGR of 33% over the last 5 years.
In FY 2023-24 Adani Green signed additional PPAs for a total capacity of 2,333 MW and
further, added 1,085 MW value accretive merchant projects to the overall portfolio during the
year. The total locked-in portfolio now stands at 21,953 MW. Adani Green operationalised 2
GW of the 30 GW of renewable capacity under construction at Khavda in just 12 months of
breaking ground and the total capacity addition in FY 2023-24 was 2.8 GW, which represents
over 15% of India's total renewable capacity addition. Adani Green was ranked the 2nd largest
Solar PV developer in the world with an impressive total solar capacity of 18.1 GW (as of the
date of review) in Mercom Capital Group’s latest Global Annual Report. Adani Green
completed the transfer of 1,050 MW renewable portfolio (300 MW operational and 750 MW
under execution) to a 50:50 JV it formed with TotalEnergies, receiving proceeds of USD 300
million (RS 2,497 crore). Adani Green enhanced its funding pool under the Contruction Facility
Framework to USD 3.4 billion by selling its largest project financing of USD 1.36 billion senior
debt facility and further added USD 400 million through five leading international banks. Adani
Green has completed funding of reserves for the redemption of the Holdco bond of USD 750
million due in September 2024. The redemption plan includes (i) USD 300 million received
towards the new JV with TotalEnergies, (ii) ~ USD 281 million received from promoters (RS
2,338 crore received out of the total RS 9,350 crore to be received towards share warrants as
above) and (iii) USD 169 million available from debt service reserve account, hedge reserves
and interest on the reserve accounts. Adani Green completed the refinancing of its existing
Restricted Group 1 bond, nine months ahead of schedule, which was due in December 2024,
with fresh issuance of new bonds for an aggregate amount of USD 409 million.
Adani Green’s operational capacity grew at 35% YoY to 10,934 MW in FY 2023-24 with
greenfield addition of 2,848 MW renewable capacity including 2,418 MW solar and 430 MW
wind projects. With this achievement, Adani Green became the first company in India to cross
10,000 MW renewable energy capacity. The sale of energy increased by 47% YoY to 21,806
million units in FY 2023-24 primarily backed by strong capacity addition, consistent solar CUF
and improved wind and hybrid CUF. The solar portfolio CUF remained consistent at 24.5% in
FY 2023-24. The wind portfolio CUF improved by 420 bps YoY to 29.4% in FY 2023-24. The
solar-wind hybrid portfolio CUF improved by 520 bps YoY to 40.7%.
Adani Green's future growth strategy is meticulously crafted to propel the Company towards a
formidable position in the renewable energy sector. With a fully secured growth path aiming
for over 50 GW capacity by 2030.

CASH FLOW ANALYSIS

All amounts are in RS crore

Particulars For the year ended March 31, 2024
(A) Cash flow from operating activities
(Loss) before tax and after exceptional items: (491)
Adjustment to reconcile the (Loss) before tax to net cash
flows:
Interest Income (467)
Income from perpetual securities (264)

Net gain on sale/ fair valuation of investments measured at Fair (100)

Value through Profit and Loss
Liabilities no longer required Written back
Provision for inventory obsolescence 10
Amortisation of Financial Guarantee Obligation Income (15)
Unrealized Foreign Exchange Fluctuation (Gain) / Loss (net) 0
Depreciation and amortisation expenses 30
 Loss on transfer / sale of Right-of-Use Assets 29
Credit Impairment of Trade receivables 1
Loss on Exceptional Items 71
Finance Costs (including derivative costs) 1,521
Operating Profit before working capital changes 325
Working Capital Changes:
Decrease / (Increase) in Operating Assets
Other Non - Current Assets (15)
Inventories (1,985)
Trade Receivables (1,487)
Other Current Assets (612)
Other Financial Assets (128)
Increase / (Decrease) in Operating Liabilities
Non - Current Provisions 1
Trade Payables 762
Other Financial Liabilities 111
Current Provisions 4
Other Current Liabilities 569
Other Non-current Liabilities 17
Net Working Capital Changes (2,763)
Cash (used in) / generated from operations (2,438)
Less : Income Tax (Paid) / Refund (net) (44)
Net cash (used in) / generated from operating activities * (A) (2,482)
(B) Cash flow from investing activities
Payment made for acquisition of Property, Plant and Equipment
and Intangible assets (including capital advances, capital creditors, (210)
capital work-in-progress and Intangible assets under development)
Investment in Subsidiary Companies, including perpetual
(5,175)
securities
Perpetual securities funds received back from Subsidiary
2,787
Companies
Proceeds from sale of / (Investment in) units of Mutual Funds
258
(net)
Fixed / Margin money deposits (Placed) / Withdrawn (net) (5,355)
Loans given to related parties and others (1,845)
Loans received back from related parties and others 1,711
Interest received (including income from perpetual securities) 436
Net cash (used in) investing activities (B) (7,393)
(C) Cash flow from financing activities
Proceeds from issue of Equity share capital
Proceeds from issue of Share Warrants 2,338
Payment of Lease Liabilities (45)
Proceeds from Non - Current borrowings 8,527
Repayment of Non - Current borrowings (2,890)
Proceeds from / (Repayment of) Current borrowings (net) 3,208
 Distribution to holders of Unsecured Perpetual Securities
Finance Costs Paid (including hedging cost and derivative gain (1,384)
/(loss) on rollover and maturity (net))
Net cash generated from / (used in) financing activities 9,754
Net (decrease) / increase in cash and cash equivalents
(121)
(A)+(B)+(C)
Cash and cash equivalents at the beginning of the year 509
Cash and cash equivalents at the end of the year 388

Operating Activities:
The company has loss of RS (491) before tax. Adani Green spent RS 1,985 of purchase of
inventories. Net cash used in operating activities is Rs 2482.It seems that Adani Green could
not able to generate cash from its core business.

Investing Activities:

Cash from investing activities is used in investment in Subsidiary Companies, including

perpetual securities of Rs 5,175. Loans is been provided to related parties and others further it
contributed use of cash Rs 1,845.Net cash out flow from investing activities of Rs 7393
which majorly driven by loan and investment.

Financing Activities:
Adani Green took Non - Current borrowings of RS 8,527 and Rs 3208 from current borrowing.
It raised Rs 2338 from Share Warrants. Net cash inflow from financing activities is RS 9,754
of which major part is borrowing.

The Closing Cash Position decreased by ₹121, which signals a slight contraction in cash
reserves although there were substantial cash inflows in respect of financing. Cash at the
beginning of the year stood at ₹509 and at the end of the year ₹388. It is important to keep
attention on Adani Green’s dependency on debt otherwise it will be risk in the future.
RATIO ANALYSIS

Adani Green
Ratio Value
Current Ratio 0.71
Quick Ratio 0.59
Absolute Liquid ratio 0.02
Debtors Turnover 6.42
Creditors Turnover 15.64
Collection period 56.86 days
Payment period 23.33days
Inventory Turnover 5.71
Holding period 63.92 days
Asset turnover 0.29
Working capital turnover NA
Debt-Equity ratio 2.98
Interest coverage 0.72
Debt-Capital Ratio 1.01
Dividend yield NA
Return on assets −1.32%
Return on capital employed 5.02%
Return on equity −7.29%
Gross profit margin NA
Operating Profit margin 9.18%
Net profit margin −4.55%

Liquidity Ratios:

• The current ratio is 0.71, which suggests current liabilities are more than the current
assets. This value also suggests that the company is unable to meet short-term
obligations.
• The quick ratio is 0.59, which suggests the company has no good liquidity condition
even after excluding the inventories.
• The absolute ratio is 0.02, which suggests the company has very few cash and cash
equivalents.

Activity Ratios:

• Debtor turnover is 6.42, which shows the company collects receivables almost six
times in the year, which gives a collection period of 365/6.42=57days
• Creditors turnover is 15.64; this higher value suggests that the company can settle
its obligation quickly with a payment period equal to 365/15.64=23.33days.
 • Inventory turnover is 5.71, which means Adani Green can turn its inventory six
times per year with an average holding period of 64 days. It reflects decent efficiency
in managing inventory.
• Asset turnover is 0.29; this is a low value, which suggests that Adani Green cannot
use its assets to generate revenue properly.
• Working capital turnover is not calculated because working capital is negative.

Solvency Ratios:

• The debt-equity ratio is 2.98, which is high value, and it suggests Adani Green has
almost three times more long-term loans than equity.
• Interest coverage is 0.72, which indicates that Adani Green is not generating enough
operating income to cover its interest expenses.
• Debt The capital ratio is 1.01; this value shows that the company is making capital
from almost equal to long-term loans.

Profitability Ratios:

• Return on assets is −1.32%, which means it is not generating profits from its
investments and is incurring losses.
• The return on capital employed is 5.02%, which indicates that although Adani
Green has other financial difficulties, it still has modest operational efficiency.
• Return on equity is −7.29%; this negative shows that the company is making losses,
and thus, there are poor returns to inventors.
• The operating Profit margin is 9.18%, showing that Adani Green is generating
decent operating profit but not much so that it could compensate for other financial
issues.
• Net profit margin is−4.55%, showing that the company is losing money after paying
taxes and other expenses, showcasing poor financial performance.

Conclusion:

Adani Green faces several significant constraints, which include financial challenges, a great
deal of reparation, and low earnings. Although the operating profit margin is marked to be
positive, inferring efficiency in the organization’s operations, other metrics suggest poor
management of assets, financial distress due to excessive leverage, and losses to the equity
investors. Adani Green focuses on reducing debt and increasing cash in & out flow efficiently
to sustain from financial risk.
3. HITACHI ENERGY
ABOUT HITACHI ENERGY INDIA LIMITED
Globally Hitachi Energy was formed as two iconic companies with a combined heritage of
almost 250 years in pioneering technologies came together. The Company’s position as a
prominent player in the energy sector was strengthened through a strategic joint venture
of ABB’s Power Grids business and Hitachi Ltd. announced in 2018. A powerhouse in
manufacturing electronics, industrial machinery, and infrastructure products since 1910,
Hitachi Ltd. lends its expertise and resources to fuel Hitachi Energy’s innovative energy
solutions for India. Hitachi’s leading digital technologies merged with world-class power grid
solutions will help Hitachi Energy to actively support the global transformation and
decarbonisation of the energy system. As India’s energy needs evolve to support rapid
economic growth, Hitachi Energy India Limited extends its legacy of seven decades as a leader
in technology and pioneering innovation to advance a sustainable energy future for everyone,
everywhere in the country. The company has forged key partnerships in various sectors such
as utilities, industries, transportation, data centers, and smart life. Hitachi Energy India Limited
was listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) amidst
the global pandemic on March 30, 2020. Hitachi Energy India Limited’s comprehensive
electrification portfolio with a range of Transmission and Distribution (T&D) solutions, HVDC
transmission corridors and innovative transformers, power quality products, and automation
solutions align with the requirements for efficient power evacuation from renewable
energy sources and making grid flexible and reliable.

MESSAGE FROM CHAIRMAN ACHIM MICHEAL BRAUN AND MD & CEO N.

VENU
As countries pledge or renew their commitments to attaining a carbon-neutral future in the long
term, it has become imperative to energize their efforts at scale with the twin accelerators of
sustainability and digitalization. Hitachi Energy India Limited’s progress and the exciting
opportunities that lie ahead in India’s renewable energy sector. The objective of creating
pathways to a sustainable energy future has led to considerable progress in the renewable
energy sector. Conducive policies and ecosystems, favorable schemes and incentives, and
country-level initiatives indicate India’s ambition to be among the global leaders in renewable
energy production. Companies such as Hitachi Energy India Limited, which has a long legacy
of partnering with the country’s renewable energy ambitions, are well-positioned to participate
in and empower this transition. With deep expertise in renewable technologies, innovative
products, and solutions enabled by a strong local manufacturing footprint and capabilities,
support this journey by leveraging renewables such as wind, hydro, and solar power. While the
goal is to accelerate the shift to non-fossil fuel-based electricity, digital transformation has
become equally critical to managing the power system transition challenges. This includes
addressing on priority the increased complexity and reduction of CO2 emissions while ensuring
the highest efficiency, reliability, flexibility, and availability at scale. With rapid expansion and
electrification of the transportation, industry, and buildings sectors, the need for a sustainable,
secure, and reliable power supply has become imperative.
With the nation moving towards achieving its net-zero goal for a sustainable future, Hitachi
Energy India Limited is strategically positioned to seize significant opportunities in India’s
evolving energy landscape. The company's expertise and commitment to innovation and
delivering across the value chain place the company at the forefront of key growth areas
including renewable energy, data center, and railway electrification. In the renewable energy
sector, the company’s comprehensive range of digitally-enabled solutions, including energy
management automation, evacuation systems, and transformers position it well to capitalize on
the momentum towards renewable energy. India’s renewable energy market is led by solar and
wind, which are already charting an exponential growth trajectory. As the capacity multiplies,
the Company’s strong market presence and extensive capabilities support the country’s
ambitious renewable energy targets. Similarly, India’s data center capacity in the top seven
cities is expected to exceed 1 GW, a three-fold increase in four years by 2024. The Company’s
offerings, such as substations, GIS, automation, and transformers, are well-aligned with the
demand from data center operators for reliable power connection and eco-efficient solutions.
Being a long-term partner of the Indian Railways, the Company can provide the technology,
products, and services necessary to support massive plans to expand the rail network,
modernize it to run high-speed trains, and overhaul old lines along with electrification.
In addition, Hitachi Energy India Limited’s extensive installed base in India provides a solid
foundation to expand its service portfolio. With offerings ranging from digitalized classic
services to advanced services and serviced solutions, the Company aims to maintain the steady
pace of increase in its share of service orders. Through its manufacturing muscle, innovative
solutions demonstrated success, and expertise, Hitachi Energy India Limited can tap into new
markets and drive growth. In line with its approach to ‘make in India for India and the world’,
Hitachi Energy India Limited is working to expand its export footprint, which currently
contributes to approximately 25% of the order book. Surpassing targets Four years after
Hitachi Energy India Limited’s standalone operations, the Company is proud to report that for
the FY 2023-24 the total orders secured were worth RS 5,536.3 Crores. The Company managed
to achieve this despite the large-scale disruption caused by the pandemic, supply chain
limitations, global supply shocks due to geopolitical challenges, and contractions in
international trade. The Company’s periodic energy assessments and efficiency transformations
are pivotal to stepping up the pace toward commitment to achieving carbon neutrality. Since
the inception of the Sustainability 2030 program, the Company has achieved an 88% reduction
in carbon emissions. Achieving 100% fossil-free electricity consumption in facilities has been
another highlight in sustainability journey. The Company’s environment-focused initiatives
such as smart metering and multiple sustainability projects across locations are also making an
impact.
Hitachi Energy India Limited remains committed to shaping the future of the energy sector,
delivering sustainable, digital-led solutions, and creating long-term value for stakeholders. The
Company is well poised to harness opportunities in key growth areas through a strong
foundation, strategic focus, close collaboration with stakeholders, and relentless innovation.
MANAGEMENT DISCUSSION & ANALYSIS
The last decade has been a transformative one for the Indian economy. In 2014, India was the
world’s 10th largest economy and now it has grown to become the 5th largest. The country has
managed to overcome setbacks due to COVID-19, buck global recessionary trends, overcome
risks and challenges posed by volatile logistics and supply chains, while contending with
inflationary tendencies and rising interest rates. Even as the pace of change accelerates, the
global economy is tracking a measured yet definite road to recovery. Demonstrating resilience,
growth is expected to maintain a subdued yet stable pace, with growth in employment and
incomes held by favourable demand on both demand and supply side. Global inflation is
forecast to decline steadily, from 6.8% in 2023 to 5.9% in 2024 and 4.5% in 2025, while core
inflation is set to decline gradually. The impact of international trade as a growth driver is
reducing, with global trade growth dropping to 0.6% in 2023; but is expected to recover to
2.4% in 2024. Shift in consumer spending from goods to services, rising geopolitical tensions,
supply chain disruptions, and the lingering effects of the pandemic have emerged as key factors
impeding global trade. India, the third-largest economy in Asia, grew 8.4% in the third quarter
for FY 2023-24 as opposed to a growth rate of 7.6% recorded for the second quarter of the
same financial year. This comes on the back of double-digit growth in the manufacturing sector
(11.6%), followed by a good growth rate of the construction sector (9.5%). The National
Statistical Office’s second advance estimates have pegged India’s real GDP growth in FY 2023-
24 to be 7.6% as against growth rate of 7.0% in FY 2022-23. The strong growth trajectory is
expected to continue in FY 2024-25 backed by robust domestic demand stemming from
continued growth in business and consumer confidence levels. Based on this, the IMF’s growth
projections were raised by 30 basis points to 6.8% in its update to the World Economic Outlook
(WEO) in April 2024.
The Indian economy is better placed than ever to take on the challenges of growth because of
the policies adopted and infrastructure foundations implemented in the last decade. The central
government has built infrastructure at a historically unprecedented rate, and it has taken the
overall public sector capital investment from RS 5.6 Lakhs Crores in FY15 to RS 18.6 Lakhs
Crores in FY24, as per budget estimates. That is a rise of 3.3X, reinforcing the government’s
thrust on infrastructure development that is equitable and inclusive, through enhanced capital
expenditure. This aligns with the government’s focus on the four I’s of Infrastructure,
Investment, Innovation and Inclusion over the next 25 years. The country has witnessed
transformative physical and digital infrastructure growth in the last ten years. While the
Reserve Bank of India held interest rates at 6.5% as of April 2024, retail inflation had also
eased to 4.85% in March 2024. The Index of Industrial (IIP) production saw an IIP value of
153.5 in January, the highest in FY 2023-24.
The power sector remains in focus as a critical service powering industrial and economic
growth. India’s installed power capacity is expected to reach 616 GW by 2027 and to 900 GW
by 2032, up from 442 GW in March 2024. Expecting this increase in demand for power, and
the continuing need to expand and strengthen the grid, National Committee on Transmission
(NCT) has approved about 10 new transmission projects worth over H 6,600 Crores, allowing
them to receive bids. Underscoring efforts to transition to a clean-energy future, India added a
record 18.48 GW of renewable energy capacity in FY 2023-24, a 21% increase over capacity
addition in FY 2022-23. At ~11% growth, renewable power including large hydro grew from
172 GW to 191 GW in FY 2022-23. The Government has put in place an ambitious plan to
grow 191 GW to over 650 GW including BESS growing at a CAGR of over 19% per annum
from FY 2023-24 to FY 2031-32. The government is betting big on solar to play a key role in
achieving India’s renewable energy targets.
Hitachi Energy India Limited has played a strong role in ensuring a resilient, flexible grid,
adapting with new technologies and offering customers the benefits of digitalization. Over the
FY 2023-24, the overarching energy transition in India has been driving broad-based order
momentum. Company has reported that at the close of FY 2023-24, total orders stood at RS
5,536.3 Crores, up 14% (excluding HVDC) from the corresponding last twelve months, while
revenue stood at RS 5,246.8 Crores with a 17% increase during the same period. This
underscores its commitment to build and deliver sustainable shareholder value. The Company
closed the year with an order backlog at RS 7,229.5 Crores, which provided a strong future
revenue visibility. Orders for FY 2023-24 were up by ~14% YoY over the corresponding period
of FY 2022-23, excluding HVDC. During the year under review, Company had some
significant order wins including 400 kV GIS export orders from Singapore & Greece, Tata
Power Solar: 220 kV / 33 kV AIS substation Adani Green: 220 kV & 400 kV AIS S/S, MEIL:
9 x 400 kV GIS & 400 kV reactors for a national hydro power company, BHEL: 9 x 400 kV
GIS for distribution company in east India,etc. Company booked orders for the financial period
under review – April 2023 to March 2024 – total of RS 5,536.3 Crores, and revenue was
RS 5,246.8 Crores. Profit-before-tax was RS 221.7 Crores and profit-after- tax RS 163.8
Crores.
Over FY 2023-24, service orders were up by 43% YoY, and accounted for 8% of Company’s
revenue. Service orders included replacement equipment, Annual Maintenance Contracts
(AMCs) and upgrades, as well as innovative solutions like RelCare and RelScan for remote
condition monitoring and maintenance. Company’s export orders were up by 43%. Exports of
transformers, power quality technologies and other key products to markets like Middle East,
Southeast Asia and neighbouring countries in South Asia accounted for around 25% of the
order book.
Company generated total orders of RS 5,536.3 Crores in FY 2023-24, increased by ~14% YoY
over the corresponding period for FY 2022-23, while excluding HVDC orders. The revenue
for FY 2023-24 stood at RS 5,246.8 Crores with a 17% increase during the same period last
financial year. The first two quarters of the year were impacted by supply limitations such as
delays in procurement of semiconductors and other key electronic components. While
continually monitoring the situation, the company also deployed strategic initiatives to mitigate
the impact of supply chain turbulence to the extent possible. Company’s net profit stood at
RS 163.8 Crores against RS 93.9 Crores in FY 2022-23. Order backlog was at of RS 7,229.5
Crores at year-end. The Board has also recommended an equity dividend of 200% amounting
to RS 4 per share of face value RS 2 each. At RS 350.2 Crores or 6.7% Operational EBIDTA
was a result of a favourable revenue mix, operational excellence and digitalization efforts.
Profit before tax stood at RS 221.7 Crores, up 69.5% YoY and profit after tax was at RS 163.8
Crores, up 74.4% YoY. Company’s current ratio was at 1.16 and interest coverage ratio at 5.31,
showing strength in its balance sheet and its ability to maximize capital. Company’s debtor
turnover ratio was 3.44, indicating its robust collection processes. However, Company is also
discussing potential repayment mechanisms to clear historical overdue. Inventory turnover
stood at 3.99. Company’s Operating EBITA was 5.0%, while the net profit margin was at 3.1%.
In FY 2023-24, the interest cost borne by Company was RS 46.6 Crores. As on March 31, 2023,
Company had a net debt of RS 22.0 Crores. In terms of foreign currency exposure – for imports
and exports – Company continued to conservatively hedge at the point of commitment to
protect the contract margins.
India is poised to emerge as the world’s third-largest economy by 2030. With an impressive
7.8% growth outlook for FY 2024 and a 6.8% forecast for FY 2025, India is top of the table
among emerging markets. The interim Union budget for FY 2024-25 made key allocations to
give a boost to clean energy. This is visible with the allocation of RS 10,000 Crores in 2024-
25 for grid-based solar power scheme, a significant jump from RS 4,757 Crores in 2023-24.
The launch of the PM Suryoday Yojana rooftop solar program in January 2024 will bring 10
million households under the ambit of the scheme with the provision of up to 300 units of free
electricity every month. The budget for the National Green Hydrogen Mission has been
enhanced to RS 600 Crores for FY 2024-25. HEIL is well-positioned to fulfill the demand
arising from greater investments in capacity enhancement and digitalization by utilities,
manufacturing, rail, e-mobility, and data centers. A wide-ranging product portfolio with a good
mix of traditional and digital products and solutions - traction transformers, dry-type
transformers, switchgears, SCADA systems, energy management systems, substations, power
electronics-based HVDC, Flexible AC Transmission Systems (FACTS), city reliable power
infeed, grid automation, microgrids, Battery Energy Storage Systems (BESS), electric systems
for Green Hydrogen, Integrated Fleet Charging for EVs and electric buses, AI-ML based Asset
Performance Management, Distributed Energy Resources Management, augmented by
Hitachi’s world class digital technologies ensure strong business potential . Half of all HVDC
links in India transmit power with Hitachi Energy India Limited technologies. With one HVDC
project expected every year and two HVDC projects to be awarded in the next 12 months,
Company is well-prepared to meet such projects with proven expertize enabled by local
manufacturing capacity.
Hitachi Energy India Limited. has been a long-standing trusted partner to the transport sector
in India offering high-tech products and solutions for electrification of Railways, Metro
projects, High-speed rail and e-mobility. From Energy Traction Transformers for Railways to
power automation for metro rail systems, and innovative flash and fleet charging solutions Grid
eMotion™ Flash and GrideMotion™ Fleet, the Company’s seamless solutions power
sustainable transport. With a goal of 100% rail electrification, rolling stock upgrade, and 1,058
km of metro rail network in 27 cities offering an additional area of play. Company sees
immense potential to further enable clean mobility in India. Data centers are set to double
capacity by 2025. Hitachi Energy India Limited has the capability to power data centers of the
future with reliable power and eco-efficient solutions. Company’s offerings of sustainable
digital and power quality products & solutions ensure reliability, increase efficiency, and
productivity through system design. Company sees opportunities for global and inter-regional
links and upgrades of maturing HVDC stations. Additionally, with digital twins, remote
monitoring, eco-efficient products and maintenance options, managing power infrastructure to
ensure reliability and ease of maintenance is an area of opportunity. Such a landscape while
offering immense potential to Company, with its local manufacturing and technological
expertise and innovative capabilities, needs the entire partner ecosystem to work
collaboratively to digitally accelerate a sustainable energy future for all. Hitachi Energy India
Limited. is closely cooperating and co-creating pioneering tech and solutions, with industry
and academia partners, suppliers, customers, and other ecosystem collaborators by leveraging
both digital and energy platforms.
 CASH FLOW STATEMENT All amount in Indian Rupees in crores,

For the year

ended March 31,
Particulars 2024
A Cash flows from operating activities
Profit before tax 221.7
Adjustments to reconcile profit before tax to net cash flows from operating
activities
Depreciation and amortisation expense 90.01
Liabilities/ provisions no longer required written back -5.57
Unrealised exchange (gains)/ loss (net) -8.12
Mark to market change in forward, commodity contracts and embedded derivative
contracts 0.55
(Gain)/Loss on sale of property, plant and equipment (net) 0.38
Provision for doubtful debts and advances/ bad debts/ advances written off 7.45
Interest income -0.59
Finance costs 46.55
Operating profit before working capital changes 352.36
Movement in working capital
Increase/ (decrease) in trade payables 306.66
Increase/ (decrease) in other financial liabilities 15.77
Increase/ (decrease) in other liabilities and provisions 427.64
(Increase)/ decrease in trade receivables 0.02
(Increase)/ decrease in inventories -70.04
(Increase)/ decrease in other financial assets -17.29
(Increase)/ decrease in loans and other assets -712.1
Cash generated from operations 303.02
Direct taxes paid (net of refunds) -50.71
Net cash flow from/ (used in) operating activities 252.31
B Cash flows from investing activities
Purchase of property, plant and equipment including capital advances (net of
reimbursement of capital expenditure) -89.36
Proceeds from sale of property, plant and equipment 0.42
Purchase of intangible assets
Interest received 0.22
Net cash flow (used in)/ from investing activities -88.72
C Cash flows from financing activities
Proceeds from/ (repayment of) short term borrowings (net) -125
Finance costs paid -40.9
Payment of principal portion of lease liabilities -14.17
Payment of interest portion of lease liabilities -4.32
Dividend paid on equity shares -14.35
Net cash flow (used in)/ from financing activities -198.74
Net (decrease)/ increase in cash and cash equivalents (A+B+C) -35.15
Cash and cash equivalents at the beginning of the year 163.19
Cash and cash equivalents at the end of the year 128.04
Cash Flow from Operating Activities:
Profit before tax is RS 221.7 Cr. The adjustments for depreciation and amortization of Rs
90.01Cr and finance costs of RS 46.55 Cr bring the operating profit before any changes in
working capital to a more substantial figure of Rs 352.36 Cr. The net cash generated from
operating activities after tax is RS 252.31 Cr, suggesting Hitachi's strong cash generation
from core business activities.

Cash Flow from Investing Activities:

The primary cash outflows involve purchase of property, plant, and equipment RS 89.36 Cr.
The net amount of cash outlay for investing activities was attributable to cash inflows from
sales of assets and interests earned that were not substantial, thus netting a cash outflow of
RS 88.72 Cr. This implies the purchase of fixed assets.

Cash Flow from Financing Activities:

The significant cash outflows are the repayment of borrowings Rs 125 Cr; finance cost
incurred Rs 40.9 Cr, and payment of dividends Rs 14.35 Cr. The total net cash outflow in
financing activities amounts to Rs 198.74 Cr.
The Company registered a consolidated net outflow of cash and cash equivalents amounting
to Rs 35.15 Cr. At the start of the year, the cash outlay was Rs 163.19 Cr and the cash
balance at year-end was Rs 128.04 Cr. The Company's operations contribute positively to its
cash flow; however, large asset purchases offset this.

RATIO ANALYSIS

Hitachi Energy
Ratio Value
Current Ratio 1.16
Quick Ratio 0.89
Absolute Liquid ratio 0.039
Debtors Turnover 3.44
Creditors Turnover 1.77
Collection period 106
Payment period 206
Inventory Turnover 3.5
Holding period 104
Asset turnover 1.11
Working capital turnover 9.74
Debt-Equity ratio 0.11
Interest coverage 5.76
Debt-Capital ratio 0.1
Return on assets 3.48%
Return on capital employed 17.77%
Return on equity 12.04%
 Gross profit margin 40.63%
Operating Profit margin 5.12%
Net profit margin 3.13%

Liquidity Ratios:

• The current Ratio is 1.16; this value is low, the company may face difficulty in
short-term obligation mitigation.
• Quick Ratio is 0.89, which Ratiocinates inventory and indicates the company's
capacity to satisfy its immediate liabilities. A fast ratio of less than 1 suggests that the
firm may struggle to meet short-term obligations without selling inventory, which
might indicate liquidity issues.
• The absolute Ratio is 0.039; this low value suggests the company has very few cash
and equivalent assets.

Activity Ratios:

• Debtors Turnover is 3.44, which means Hitachi Energy can collect its receivables
three times a year, which is moderate but reflects some inefficiency in managing
receivables. The collection period is 365/3.44= 106 days, which is a relatively high
value and shows slower collection, which may affect liquidity.
• Creditors Turnover is 1.77 & payment period is 365/1.77= 206 days. These values
indicate that the company takes much time to pay suppliers, which may be a strategy
for managing the cash flow, or it could be the risk of delaying payment, which may
affect the relationship with suppliers.
• Inventory Turnover is 3.5, a healthy ratio showing that the company moves its
inventory three times a year, managing it well. The holding period is 365/3.5=104
days, which is moderate.
• Asset Turnover is 1.11, which shows the company is using its assets efficiently upon
the investment it made.
• Working Capital Turnover is 9.74, a high ratio that shows that the firm generates
considerable revenue while using minimal working capital. This is a favorable
indicator of operational efficiency.

Hitachi Energy is managing its inventories effectively. But company takes much time to pay
suppliers, which may be a strategy for managing the cash flow, or it could be the risk of
delaying payment, which may affect the relationship with suppliers.

Solvency Ratios:

• The debt-equity ratio is 0.11, which suggests that company has low long term loans.
This indicate that company relies on equity than loans for its financial stability.
• Interest Coverage Ratio is 5.76, Hitachi Energy's EBITDA is 5.76 times the interest
obligation of the corporation. This deliberately healthy margin shows that the entity
earns enough to cover its interest expenses.
• The debt-to-capital employed Ratio is 0.1, the percent of the total capital employed.
Since the owner's equity primarily finances the company, it contributes to its low-risk
profile.
The company's solvency is stable, with low levels of debt and a potent ratio of interest
coverage, which implies that there is little risk with its current obligations.

Profitability Ratios:

• Gross Profit Margin (40.63%): A higher gross profit margin suggests the company
controls all the manufacturing and running costs so well that adequate gross profits
would be derived from most sales.
• The operating profit margin stands at 5.12%. This is comparatively less than
expected, meaning that the operating cost takes up a considerable chunk of the
revenue. It could reduce expenses or enhance operational effectiveness.
• Net Profit Margin (3.13%): The net profit margin is relatively tiny, meaning that the
firm is left with a mere 3.13% allocated to net profit after expenditures, including
taxes and interests.
• Return on Assets 3.48% – The Corporation generates a profit of ₹3.48 within 100
rupees of its asset investments. This shows some positivity but is not very
encouraging, which shows that we could do better using assets.
• Return on Capital Employed: 17.77% – A high ROCE means that the company is
making good returns from its investment capital. This is a very positive aspect of the
company regarding its profitability and use of capital.
• Return on Equity: 12.04% – This is an excellent return for shareholders, showing
that the company can give exceptional value to its investors.

The company's operational and net profit margins suggest room for improvement in spending
management despite good gross profit margin and ROCE. The company can earn decent
returns on assets deployed and equity-provided innovative design.

The indicator of the overall financial health is positive. The summary of findings is provided
below:
Strengths: Strong solvency, low debt, and high-interest coverage.
The ratios of asset turnover and working capital turnover show the effective use of assets and
working capital, respectively.
Profitability measured in gross profit margin and capital return is good, which indicates good
management of core activities.
Weaknesses: There could be liquidity issue because values are much smaller which suggests
that Hitachi Energy may face issue with short term obligations. The collection and payment
payments are also quite high, this could chock the financial flow. Low values of operating
and net margins shows that the operational efficiency can be improved.
5. RELIANCE POWER
CHAIRMANS MESSAGE
Shree Sateesh Seth recapitalising on the Company’s achievements in the letter addressed to
the shareholders notes that the year was a challenging yet successful for Reliance Power. For
as long as there exist global economic instabilities and uncertain market dynamics, the
company has the responsibility to generate sustainable stakeholders’ value. The Chairman
therefore stresses that the company with lot of enthusiasm for the bright future ahead,
remains to be committed to improving operations, embracing newer technologies, and have
additional renewable power generation capacity.
Another of the regular themes that can be traced in the Chairman’s message is the
transformation which the global energy landscape is still going through. He very ably speaks
of how the company accepts the dynamics that the energy transformation poses and proceeds
to explain how Reliance Power has aligned itself to these changes. Consequently, the long-
term growth strategy of the company has been anchored on developing the capacity of
renewable energy, increasing operational efficiency, and decreasing emission of carbon.
The Chairman is pleased since the company is actually diversifying and moreover, building a
stronger Energy Portfolio in renewable energy. Renewable energy sources are important since
the emerging energy industry depends on such resources due to the need to cut emissions.
Reliance Power will do this leadership through investments in cleaner energy sources which
is likely to be seen with the adoption of new technologies.
Besides that, the Chairman would also want to convey his gratitude for sustained loyalty and
confidence that all the stakeholders: employees, customers, partners, and shareholders have
shown the company during such periods. He sees them as being involved in every step that
the company takes and has be to assure them of Reliance Power’s dedication towards a future
that is Sustainable and Energy Efficient. What is more, it sounds so convincing that the
company is ready to use these strengths to exploit new opportunities developing in the sphere
of renewable energy sources.
Worthy of the subject, the message from the Chairman in a nutshell is an apt metaphor that
captures the strategic direction of Reliance Power today as sustainability, operational
effectiveness, and innovation. It reiterates once again that the Company is well prepared to
sync with the energy landscape shifts at an aggressive pace and is well focused on supporting
all its stakeholders by delivering sustainable value propositions that operates on value
creation paradigm.

MANAGEMENT DISCUSSION AND ANALYSIS (MDA)

The MD&A section of the annual report gives an all-encompassing perspective on the
financial position, operational results, and future outlook of Reliance Power Limited. This
also serves as the main Fora to discuss the major opportunities and challenges along with
strategies being put into use by the company in view of the changing business environment.
1. Indian Power Sector: Opportunities and Threats
The Indian power sector is at an interesting stage as it is in the process of rapid metamorphic
transition and this is attributed to continued policy changes, technology advancement, and
increasing requirement of electricity. The government has launched several measures for
making the sector more efficient and sustainable; the UDAY or Ujwal DISCOM Assurance
Yojana scheme was launched specifically for the purpose of revamping the financial and
operation health of the distribution companies of India or DISCOMs. This reform is expected
to reduce the overall AT&C losses to the range of 12% to 15% by the financial year 2025;
thereby enhancing the revenue collection for the generating companies such as Reliance
Power.

But then the sector has its problems too in the guise of regulatory policies, availability of fuel,
and the unsteady financials of DISCOMs. Because of the diversified project pipeline in terms
of coal and other renewable energy projects and long-term PPAs with better payment
guarantee mechanisms the impact of sector problems on its operation is well contained.
2. Operational Performance

Reliance Power Limited brings out various power plants in the country and thus, plays a great
part towards adding to the capacity for producing power within the country. This mammoth
portfolio also consists of distinct coal-sectored and renewable power projects as well.

Sasan Ultra Mega Power Project: Sasan UMPP is a mega power project which is coal based
integrated power plant of 3,960 MW is among the worlds largest. This, the company attained
an average patrons load factor of 93. 5% while the overall PLF in the country is averagely
around 69%. The captive coal mine, which was considered as part of the project, produced
18. 28 million metric tons of coal during the year, and effectively managed and maintained
the operations whilst ensuring total fuel security. The solar generated power is being provided
to 14 DISCOMs in seven states through a 25-Year Power Purchase Agreement (PPA).

Rosa Power Plant: The Rosa Power Plant is comprised of 1,200 MW power plant in Uttar
Pradesh. The plant generated 7,609. 7 MUs of electricity for a total of one year 12 of its
operation . In order to eliminate market risk, the plant purchases the output of the contracted
capacity under a cost-plus regulated PPA from the state of Uttar Pradesh and guarantees
revenue stream.

Butibori Power Project: This is a thermal power plant of 600 MW based on coal at
Maharashtra. Because of these problems, some of which included delayed regulation
challenges, fuel provision, and business disagreements; the plant had not commenced its
operations. This has resulted in challenges that the company is currently struggling to address
in form a resolution plan with these factors.

Renewable Energy Projects: Solar and wind power the renewable energy portfolio of the firm
includes solar and wind power projects that are contracted fully for offtake of the power with
hence limited demand risk. They had committed themselves into renewable energies with a
40MW Solar Photovoltaic (PV) plant, a 100MW CSP plant, and a 45MW Wind power plant.

3. Financial Performance

The total income for the year ended March 31, 2024 was ₹ 8,26,023 lakhs as against
₹7,88,274 lakhs of the previous year. Income from operations were at ₹ 7,89,260 lakhs as
against ₹ 7,54,269 lakhs having registered a growth of about 4 percent. 6 percent than the
corresponding period during the last fiscal year. Including the fact that costs were a major
problem in the company and more so, there was no way the company could have contained
them; profits were considerably reduced due to the high costs. Total expenses raised to ₹
10,24,833 lakhs because of the costs on account of fuel, finance costs and general expenses
more than the earlier year.
This resulted in an increased consolidated loss after tax for the year of ₹2,06,838 lakhs, which
is quite higher compared to the loss of ₹40,289 lakhs recorded last year. The losses increased
manifold due to a rise in operational costs, increases pertaining to exceptional items, and
unfavourable economic conditions. Key financial ratios also reflected the impact of these
adversities on key areas such as debtors' turnover and interest coverage ratios. This is now
calling for major emphasis on cost optimization and operational efficiency

4. Risk Management
A well-suited risk management system has been implemented in Reliance Power through
identification, assessment, monitoring, reporting and minimizing of various risks at both the
corporate and the project levels. While the Board Risk Committee is responsible for assessing
the risk management framework and overseeing its application, the Risk Management
Committee of the Board monitors the risk management process as well as instigation of risk
prevention measures.
The major risks considered by the company are regulatory risks, availability of fuel,
fluctuation in the market and credit risks of DISCOMs. In order to manage these risks the
firm has several long-term PPAs with robust credit guarantees, operates a diverse project
pipeline and constantly invests in technology and operations.

5. Internal Financial Controls and Systems

Currently and with regards to the size and operation scale of the Company, it has adequate
internal financial controls and procedures in place. Internal Audit carried out by reputed audit
firms checks the adequacy of the same on a regular basis with special reference to statutory
and regulatory compliance. The Audit Committee of the Board scrutinizes the internal audit
reports and suggest changes where ever considered necessary.
6. Regulatory Environment
The exercise has also revealed that the Power sector remains one of the most dynamic in
terms of regulatory changes due to review in environmental standards, shifting tariff
indicators and fuel supply regulations. Regulatory is one of the most important fields that
have significant impact on the business functioning; therefore, Reliance Power actively
cooperates with these authorities to meet all the requirements and safeguard its interest. The
Company has, therefore, taken pre-emptive measures for compliance with the new
environment norms as provided under the Environment (Protection) Amendment Rules, 2015
which expected to involve capital intensive expenditures. By extending the tariff recovery
framework, the Central Electricity Regulatory Commission has in a way, attempted to reduce
these features’ effects on the power producers. Annual Report 2023-24
7. Human Resources
On their web site the company hails human resources as its most strategic asset. Among
them, Reliance Power hires 1,277 persons and ensures that the most appropriate human
resource policies and such human resource strategies will facilitate great business goals.
Consequently, the company had taken some measures that sought to enhance the employees’
involvement, training and development. Manpower development is also given special
emphasis on the career advancement and succession management that helps in knowledge
sharing and leadership transition.

8. Corporate Social Responsibility (CSR)

Reliance Power Limited has ventured in different social responsibilities pursued in education,
health, rural development, the environment and the Swachh Bharat Abhiyan. The Company’s
CSR strategies are oriented toward the identification of the requirements and concerns of the
communities, adjacent to each Business Unit, with the subsequent incorporation of CSR
targets into the AOPs. Some of awards and recognitions received by the company largely
index the measures it has taken in relation to sustainability and social responsibility.

9. Outlook
Relatively, in the future, Reliance Power would focus on extending its presence in the Indian
power industry through base operational management and increase in generation of
alternative power resources besides exploring newer business streams. Some of the non-core
assets like the hydroelectric power projects will also be sold to reduce on circulation and
improve on core operation concentration.

It is also on a procurement campaign of sorts for growth opportunities in overseas markets.

For instance, the subsidiary Reliance Industries Limited has established Reliance Bangladesh
LNG and Power Limited that is undertaking a 718MW power plant project in Bangladesh
which is planned to start generation before December of the year 2024. This is also true with
regards the company entry into the international power market as well as the company
attitude towards geographical expansion.

10. Conclusion
The Management Discussion and Analysis also highlights the Reliance Power’s assertive
action towards the organisation’s operation and finance risks and opportunities in the
uncertain and competitive power industry. It means that the company will always be looking
for ways to enhance the effectiveness of operations, decrease expenditure, mitigate hazards
and finally create value for the stakeholders in the long-run. Thus, Reliance Power has been
keen on ensuring that it has leadership in the future transformation of the regulatory and
market contexts as it works towards its value contribution towards the delivery of the
sustainable development goal of the country.
FINANCIAL RATIOS

Ratio 2023 2024 Industry Analysis

Avg
Current Ratio 1.31 1.36 1.2 Slightly below the industry average,
indicating moderate liquidity.
Liquidity Ratio 1.31 1.36 0.8 Exceeds industry average, showing
(Quick Ratio) strong short-term liquidity.
Absolute Liquid 0.11 0.10 0.5
Well below industry average, indicating
Ratio
limited cash reserves
Debt-Equity 1.84 1.61 0.6 More leveraged than industry average,
Ratio though improved in 2024
Debt to Total 0.65 0.62 0.4 High reliance on debt, but improving
Capital Ratio
Gross Profit 25.09% 14.68% 20% Below industry average, with a sharp
Margin decline in 2024 indicating rising costs
Operating Profit 25.09% 14.70% 12% Major drop in 2024 indicates
Margin operational inefficiencies or rising
expenses.
Net Profit -6.27% - 10% Significant losses, worsening in 2024, far
Margin 26.21% below industry norms
Price to -7.89 -5.49 20 Negative P/E ratios due to losses, but
Earnings (P/E) valuation improved slightly in 2024
Ratio
Return on -4.09% - 10% Negative returns for shareholders, with
Equity (ROE) 17.81% worsening performance in 2024
Return on -0.97% -4.72% 5% Poor asset utilization, with a sharp
Assets (ROA) decline in 2024
Interest 1.62 0.47 5.0 Well below industry standards, with
Coverage Ratio difficulty covering interest expenses,
especially in 2024.
Debt Coverage 0.19 0.17 1.5 Below industry average, limited ability
Ratio to cover debt with operating cash flows.

Analysis: Liquidity: A steady short-term financial situation is indicated by the current ratio
and quick ratio, which are marginally over or below industry standards. The corporation
appears to have limited cash on hand in comparison to its liabilities, as indicated by the
extremely low absolute liquid ratio.

Leverage & Solvency: Although it improved in 2024, the company's debt-to-equity ratio is
greater than the industry average, indicating a high degree of debt dependency. Elevated
financial risk is indicated by the debt to total capital ratio, which is likewise higher than the
industry average.

Profitability: With a sharp fall expected in 2024, the gross profit margin, operational profit
margin, and net profit margin are all substantially below industry standards. The business is
dealing with issues that are impacting profitability, such as rising costs or inefficiencies in
operations.
Assessment: Due to losses in both years, the P/E ratio is negative. This can be a sign of
overvaluation or of investor expectations that are out of step with the company's actual
profitability.

Return to Investors: The company is producing low returns on its assets and negative returns
for shareholders, as evidenced by the negative ROE and ROA figures. The substantial drop in
both indicators by 2024 points a deteriorating financial situation.

Debt and Interest: The interest coverage ratio is significantly lower than the industry average,
a sign that it will be difficult to pay interest costs, particularly in 2024. Additionally, the
company's debt coverage ratio is marginally below the industry average, indicating a
restricted capacity to pay down debt using operational cash flows.
RECOMMENDATION
Boost profitability: In order to increase its profit margins and halt the trend of rising losses,
the company must concentrate on cost containment and operational effectiveness.
Improve liquidity: The absolute liquid ratio could be raised by raising cash reserves or
lowering short-term obligations.
Diminish leverage: In order to strengthen its solvency and lower financial risk, the
corporation had to think about depending less on debt.
Put your attention toward increasing returns. In order to increase shareholder returns, better
asset utilization and increased profitability are required, as shown by the negative ROE and
ROA.
CASH FLOW ANALYSIS
Cash Flow from Operating Activities (CFO):
• 2023: ₹ 4,023.74 million
• 2024: ₹ 3,173.85 million
Analysis:
Operating activities brought in a healthy ₹4,023.74 million for the company in 2023;
but, in 2024, that amount dropped to ₹3,173.85 million. A possible decline in core
company performance or an increase in working capital requirements is indicated by
the 2024 operating cash flow reduction. The company is still producing positive
operating cash flow, which is essential for sustainability, notwithstanding the decline.
Cash Flow from Investing Activities (CFI):
• 2023: ₹ -354.18 million (cash outflow)
• 2024: ₹ -192.15 million (cash outflow)
Analysis:
 Despite having a negative cash flow from investing activities in both years, the
corporation continues to invest. But in 2024, the outflows declined, which would
mean fewer investments or a decline in capital expenditures (CapEx). The company's
investment outflows indicate that it is still seeking expansion prospects, which is
encouraging. However, it needs to be closely watched to make sure that the returns on
these investments outweigh the outflows. Despite having a negative cash flow from
investing activities in both years, the corporation continues to invest. But in 2024, the
outflows declined, which would mean fewer investments or a decline in capital
expenditures (CapEx). The company's investment outflows indicate that it is still
seeking development prospects, which is encouraging, but it needs to be watched to
make sure the returns on these investments justify

Cash Flow from Financing Activities (CFF):

• 2023: ₹ -3,623.14 million (cash outflow)
• 2024: ₹ -2,734.20 million (cash outflow)
The company's financing actions resulted in sizable outflows in both years, mostly from debt
repayment and dividend distribution. The outflows declined in 2024, which would mean the
business is concentrating on paying down its current debt or is less dependent on outside
funding. This points to a shift in the direction of financial stability, although the debt levels
still show the previous high reliance on finance.
Net Cash Flow:
• 2023: ₹ 46.42 million
• 2024: ₹ 247.50 million
The company's net cash flow increased from ₹46.42 million in 2023 to ₹247.50 million in
2024, indicating that it had positive cash flow in both years. Even though cash from
operations decreased, net cash flow improved, indicating better investment and financing
activities. A rise in net cash flow indicates that liquidity is getting better.
Key Takeaways
Positive Operating Cash Flow: Despite the fall in 2024, the company is still making a
significant amount of cash from its operations.
Investing for Growth: The business keeps making investments, albeit more slowly, indicating
a cautious but positive strategy for expansion.
Debt Reduction: A concentration on debt repayment or a decreased reliance on outside
finance is shown by the steady outflows from financing operations.
Better Cash Management: The overall increase in net cash flow in 2024 shows improved cash
management, giving the business greater liquidity to pay its debts.
6. ADANI ENERGY SOLUTIONS
CHAIRMAN’s MESSAGE

The year 2023 posed a major challenge to Adani Energy Solutions Limited (AESL) in a way
which have never been seen before. The Chairman started by examining the troubles that the
Adani Group went through and does through, primarily, an attack from an American short-
seller. This attack was to bring down the financial’ aspect of the group especially at a time
when AESL was in the midst of closing the Follow-on Public Offer (FPO). The malicious and
false statements supported by some segments of the mass media were aimed to destroy the
company’s market value and pull it into politicking.
However, it should be noted that in the face of the adversities, the company exhibited an
extraordinary respite de occurrences or AESL spirit. The term FPO brought another historic
decision for the company, it decided to return ₹20,000 crore back to the investors due to
investors trust and ethical management. The Chairman highlighted the fact that this decision
was made possible due to the company’s commitment to all its stakeholders as well as to the
principles held by the firm.

In those circumstances, the most valuable factor of AESL was its liquidity. To strengthen cash
position, the company increased approximately ₹40,000 crore and it has adequate cash to
meet debt obligations for next two years. Such action not only brought back investors’
confidence but also help to ensure that AESL portfolio is not affected by future fluctuation.
To diversify its sources of fund, AESL prepaid ₹17,500 crore on margin-linked financing
which enhanced the company’s position in terms of financial fundamentals.

The Chairman was proud to report that for AESL the Debt to EBITDA ratio has declined
from 3. 3x at the end of the FY 2023/2024 to 2 = 3 at March 2023. 2x, which is a rather
encouraging fact given that in five years the number of serious crimes has been 7x. The
reduction also improves the firm’s balance sheet and at the same time prepares it for further
growth. The chairman however attributed the success as highlighted in the report to the hard
work by the AESL team as well as strong support of the shareholders.

This was further supported by the Supreme Court of India’s ruling by exonerating AESL of
the constitutes it had committed and engaging M/s H.J. Heinz Company to honour the
agreement signed with AESL. According to the Chairman, a number of motives thanked the
appreciation from the rating agencies, the financial community and international investors.
AESL Official admitted that key partners such as GQG Partners, TotalEnergies, IHC, QIA
and U.S Development Finance Corporation were willing to work with AESL and confirmed
that AESL has not been involved in any malpractice.
When focusing on the future of AESL, the Chairman stressed that after all the developments
that the company is more powerful than before. In this report I identified various strengths,
opportunities, threats and weaknesses inherent to AESL and being armed with resilience
coupled with a vision, AESL stands optimally positioned to both overcome all these threats as
well as hatch out new opportunities. The diversified and large-scale project pipeline the
company has in transmission, smart metering and power distribution will enhance it is
presence and market dominance in India. Further, the expansion into new distribution
territories will enable AESL reach out to more clients hence ensuring sustained growth.

At last, the Chairman expressed his appreciation to the shareholders for having faith in AESL
that has accelerated the journey of the organization. These strengths the company has shown
that by converting its shortcomings into opportunities and it’s honouring the principles of
ethical corporate governance not only has regained but also fortified AESL’s reputation and
competitiveness. Therefore, equipped with this renewed sense of purpose and firm foundation
AESL is ready to create sustainable value for all its stakeholders and chart a path to become a
dominant player in the energy solutions industry.

DIRECTOR’s REPORT

The Directors Report of Adani Energy Solutions Ltd (AESL) consists the annual
performance, corporate governance, risk management, sustainability and corporate social
responsibility in the performance year 2023-24. It focuses on main activities in the company
and its subsidiaries, main developments, achievements in terms of financial results and
company’s compliance with the legislation requirements.

An analysis of the Company performance in the general and financial context.

Looking at the aspect of the financial performance, AESL’s performance has remained strong
in the face of odds in the market. The organization has continued to uphold a sound level of
liquidity, in order to have enough cash to meet its interest and lease repayments besides
meeting other expenses. The following strategic decision of the action was made: To decrease
company’s Debt to EBITDA ratio from 3. 3x to 2. 2x again solves the issue of struggling for
financial growth and expresses the company’s priorities towards a more stable and cautious
financial model. The key factors for improvement of AESL’s market position can be
attributed to its accurate emphasis on operational effectiveness, cost control and investment.

Governance and Board Activities

The AESL Board of Directors’ report describes how the Board of AESL is made up of
Executive and Non-executive independent directors and also Women Directors. It is the belief
of the Board to operate under strict corporate governance principles that enhances ethical
business conduct, disclosure, and reporting. For the year the Board held six meetings to try
and ensure that all the decisions that were made were well thought through and met all the
statutory requirements. It also underlines the strategy of how to establish a diverse and a
qualified Board through effective succession planning of directors and regular training for the
Board members.
Committees and Their Roles
AESL has formed several statutory and governance committees to supervise different
operations and functions of the AESL. Some of these committees include; Audit Committee,
Nomination and Remunerational Committee, Stakeholders’ Relations Committee, Risk
Management and Administration Committee, Corporate Social Responsibility Committee
among others. All the committees have specific functions of overseeing and facilitating the
execution of the strategic plans within the company and make sure that AESL is compliant
with the set corporate values and legal requirements.
Risk Management
The company has systematically embraced what is referred to as the Structured Risk
Management Framework intended at managing risks within the organization. The financial
risk management plan; the operational risk management plan; and the compliance risk
management plan are managed by the Risk Management Committee (RMC). Another
responsibility that lies with the Audit Committee is to also oversee the management of
financial risks. A major strength that AESL has adopted in its operations is risk management
that has helped it to overcome the operational challenges that are characteristic of the energy
sector and sustain its competitive advantage in the market.

Corporate Social Responsibility (CSR)

AESL feels obliged to contribute towards social well-being of the society through their Chief
responsibilities. The company’s CSR initiatives are managed by a CSR Committee that deals
with several aspects such as education, healthcare and the environment. AESL has also
implemented many projects that help ease the social-economic challenges that are faced in
the areas they work in. The report provides information on how the company supports
education, health care and sustainable development.
Directors’ Responsibility Statement
It contains letters from the Board of Directors which State that the annual financial statements
have been prepared in accordance with accounting standards and policies, and that there are
sufficient and effective internal financial controls in operation. The Board also affirms that
there are accounting records, which have been kept in order to produce accurate and reliable
reports. Further, acknowledging the fact that there has been substantial compliance with all
laws and legal requirement as regards the company and its business and there has not been
any serious slippage from this regard during the year.
We have a system or internal financial controls and Audit hold in place that is seized by the
company.
AESL has put in place controls that are effective in safeguarding financial reporting and for
the compliance of statutory regulations. In the light of these, the internal audit of the
company is reasonable corresponding to the size and kind of business activity of the company
and serves as a mechanism for the monitoring and controlling the financial processes of the
company. It has been noted in the above report that no material weaknesses were also noted
by the internal auditors for the year, and the company’s financial management controls were
also said to emit a clean bill of health.

Executive and Board of Directors Changes

The report also gives details of the various activities that took place in the year in regards to
the companies key managerial personnel known as KMPs. Mr. Anil Sardana was asked to
continue as the company’s managing director for the next five years and Mr. Kandarp Patel
was redesignated from the position of Executive Director to Chief Executive Officer (CEO).
There was a new management team appointment where Mr. Kunjal Mehta was appointed for
the position as Chief Financial Officer (CFO). On this front, the Board thanked the outgoing
KMPs and extended a warm welcome to the new members on the team.
Compliance and Legal Matters
The report also affirms to the fact that AESL has met all the legal requirements of the
Companies Act of 2013 and the SEBI Listing Regulations. The particular corporate body has
incorporated measures such that it does not practice insider trading the use of unpublished
price-sensitive information was prohibited. The report also states that during the year under
consideration the company did not face any major legal cases or regulatory penalties which
reflect its policy of operating as an ethical organization.
Employee welfare and safety
There is a strong emphasis by AESL on employee welfare and safety. Many programs have
been put in place to maintain a healthy and safe workplace environment so that the
employees are taught the importance of safety within their working area. The report further
shows commitment on the part of the company to ban sexual harassment-what with a zero-
tolerance policy already in place, backed by compulsory training given to all employees.
Conclusion
The Directors' Report concludes by recognizing the support the company received from the
shareholders, customers, suppliers, and business partners. For the Board of Directors, so
many employees have shown dedication and hard work, and it is they to whom credit should
be accorded for the continued success of the company. With this rich, ripe experience of
impeccable performance, AESL will continue to build on operational strengths and strategic
initiatives to realize long-term growth and value creation for all stakeholders.

MANAGEMENT DISCUSSION AND ANALYSIS (MDA)

Overview of the Global and Indian Economic Scenario

The Management Discussion and Analysis Report commences with the global economy,
which remained resilient despite facing multiple challenges throughout the year 2023. The
major issues included geopolitical tensions, inflationary pressures, and continued disruptions
in world supply chains. With all these factors, the global economy remained able to keep up
the growth momentum, though at a lower pace compared to previous years. Advanced
economies were unable to manage inflation, while fiscal tightening was the major issue in
developing economies. There is volatility in terms of currency and capital flow in the
developing economies.

However, India remained one of the fastest-growing major economies in the world, impelled
by strong domestic consumption, an excellent export performance, and considerable
government expenditure on infrastructure building. The Government of India's efforts,
especially in implementing the NIP and the Atmanirbhar Bharat programme, have been
crucial to sustain economic growth. Further, the emphasis which the Indian government lays
on transition toward a digital economy, and the incentive provided for the manufacturing
sectors through the PLI schemes, have only added to the economic momentum.

Overview of the Energy Sector AESL operates in one of the most interesting times in the
energy sector, so vital for the growth and development of the Indian economy. The changing
face of India's energy is marked by rapid urbanization and industrialization, complemented
by the will of the government to extend infrastructure. Demand for energy in India is growing
at a steady state and requires substantial investments in generation, transmission, and
distribution infrastructure.

This is considered a current trend in the sector: the shift to renewable sources of energy. The
Government of India has ambitious targets for renewable energy capacity-to reach 500 GW
installed capacity by 2030. This transition shows the broader global shift toward cleaner
energy as countries try to reduce their carbon footprint and fight climate change. This gives
AESL enormous opportunities to expand its renewables portfolio and create a major role in
India's energy transition.

AESL Business Model and Strategic Focus

The company's stated business model is related to integrated energy solutions comprising
power transmission, distribution, and smart metering. The strategic functioning of the
company falls in line with India's energy requirement for improvement of power delivery in
terms of reliability and efficiency throughout the country. At present, AESL has established
itself as one of the leading companies in the energy sector by establishing a strong
infrastructure, technological expertise, and sound financial base accordingly.

The financial section of the MDA report pointed out the strong performance that AESL has
put forward in fiscal year 2023-24. Robust revenue growth at the company is the result of its
expanding transmission network and successful execution of large-scale smart metering
projects. It succeeded in maintaining healthy profitability despite the prevailing hard
economic environment, due to cost optimization initiatives supported by a high margin-
focused project pursuit strategy.

The key financial highlights are as follows:

Revenue Growth: AESL grew its revenue significantly, reflecting success in asset base
building as well as operational capability building. Profitability: The profitability has
improved with a higher operating margin due to cost efficiencies and strategic project
selection.
Debt Management: The sound financial management of AESL is reflected in the decrease in
its Debt to EBITDA ratio, which it brought down from 3.3x in the previous year to 2.2x. It
adds to the financial stability of the company and provides additional headroom for making
future investments.
Risk Management Framework
AESL places tremendous emphasis on risk management, realizing that the energy sector is
highly vulnerable to/subject to all kinds of risks: changes in regulation, operational, and
financial volatility. It has instituted an all-inclusive risk management framework that
identifies, assesses, and mitigates risks throughout its operations.

Key risks identified include:

Compliances: There is a risk of change in government policies or regulatory framework

affecting AESL's operations, especially on tariff structure, environmental standards, and the
process of land acquisition. Project execution risk: Given the nature of infrastructure projects,
the projects undertaken by the company are prone to risks on delay, cost, and logistics. AESL
minimizes these risks through stringent project management discipline and tight monitoring
of the project timeline and costs.
Financial Risks: AESL is exposed to financial risks related to interest rate volatility, foreign
exchange volatility and credit risk. Such risks are managed by the company through
appropriate hedging, judicious financial planning, and a strong liquidity position.
Sustainability and Corporate Social Responsibility (CSR)
The core areas of focus at AESL include sustainability, where the Company is committed to
minimizing environmental impact while contributing positively to social and economic
development. In the MDA report, AESL assures of its commitment to implementing
sustainability into business operations with focus on increasing the renewable energy share
within the portfolio and improving energy efficiency.

Key initiatives related to sustainability:

These are some of the measures that can be undertaken to address all relevant information
with regard to sustainability concerns.

Integration of Renewable Energy: AESL has aggressive plans for renewable energy
capacity development, currently under-execution projects in the fields of solar, wind, and
hybrid power. As part of growth, the company is committed to increasing the share of
renewables in its energy mix in order to be able to contribute toward India's clean energy
targets.
Energy Efficiency: AESL undertakes various initiatives to enhance overall energy efficiency
through smart grids, energy-efficient technologies, and demand-side management programs.
These include various company CSR programs in education, health care, and community
development. AESL has been executing several projects to improve the quality of life in its
operational communities, especially for the underprivileged. The initiatives align well with
the United Nations Sustainable Development Goals (SDGs) and epitomize AESL's
responsible corporate citizenship.
Human Resources and Talent Management
AESL views its people as the biggest assets and is committed to maintaining a work
environment that fosters innovation, teamwork, and professional growth. The human
resources strategy of the company focuses on competency building, diversity, and inclusion,
and increasing employee engagement.

Key Initiatives:
Talent Development: AESL has the best training and development programs that help
employees prepare themselves for the respective job requirement. It would ensure the
workforce remains competitive within this fast-evolving industry, catering to both technical
and leadership competencies.
Diversification and Inclusion: The company nurtures an environment that embraces
diversified inclusion, believing both stimulate innovation and creativity. AESL ensures the
availability of an appropriate work environment where every employee is valued and
respected.
Employee Engagement: AESL periodically undertakes employee engagement surveys to
gather useful feedback and comprehend which areas to focus on. The management has been
able to incorporate certain relevant feedback from the recent engagement survey into a few
work-life balance, wellness, and job satisfaction initiatives for employees.
Future Outlook
Conclusion The MDA report closes on a very forward-looking outlook for AESL, considering
strong growth prospects of the Indian Economy and rapid growth in demand for energy. The
following will be among the key strategic priorities at AESL over the coming years:

Expanding Transmission Network: AESL will pursue a strategic expansion of its

transmission infrastructure in line with the rising demand in India. It explores opportunities in
new geographies for projects that improve the reliability and efficiency of the grid.
Growth in the Smart Metering Market: AESL is targeting boosting its market share in the
smart metering segment by taking advantage of government mandates for installing smart
meters across the country. At the same time, it finds itself in a better position to lead this
market since it already possesses expertise and has successfully deployed projects.
Renewable Energy Opportunities: AESL is committed to expanding its renewable energy
portfolio with a bias for solar, wind, and hybrid power projects. The company will explore
new business models and partnerships to accelerate growth in the sector.
Value Creation through Digital and Technological Innovation: AESL would continue to invest
in digital technologies in order to optimize operations, enhance customer service, and
promote efficiency. Some of the indispensable cogwheels that make up the digital
transformation strategy of the company are advanced analytics, automation, and smart grid
technologies.
On the whole, AESL is very confident about being able to move along with all the challenges
and opportunities that lie ahead. Strong finances, operational excellence, and strategic focus
on growth and sustainability will place AESL in a better position to enjoy continued success
over the coming years. More importantly, AESL has always remained committed to ensuring
long-term value creation for shareholders and toward the energy transition and sustainable
development of India.

FINANCIAL RATIOS

Ratio 2023 2024 Industry Analysis

Avg
Current Ratio 1.74 1.80 1.2 Both years exceed the industry average,
indicating the company’s better ability
to cover short-term liabilities.
Liquidity Ratio 0.95 1.46 0.8 The liquidity ratio improved in 2024,
(Quick Ratio) surpassing the industry average,
showing the company’s strong short-
term liquidity position.
Absolute Liquid 0.48 0.68 0.5 The company’s liquid assets are closer to
Ratio industry norms in 2024, improving from
2023.
Debtors 0.97 1.05 10 Well below the industry average,
Turnover Ratio suggesting the company is slower in
collecting receivables compared to
peers.
Creditors 1.11 1.25 8 The company takes much longer to
Turnover Ratio settle its payables compared to the
industry, indicating a more extended
payment cycle.
Inventory 1.42 3.67 2 Both years show slower inventory
Turnover Ratio turnover compared to the industry, but
there’s a strong improvement in 2024.
Working Capital 2.28 2.36 2.5 The company is slightly below the
Turnover Ratio industry benchmark but shows a slight
improvement in 2024.
Asset Turnover 0.25 0.28 0.8 The company lags behind the industry in
Ratio terms of asset utilization efficiency but
shows an improving trend.
Debt-Equity 2.92 2.93 0.6 The company is highly leveraged
Ratio compared to the industry average, with
much more debt per unit of equity.
Debt to Total 0.74 0.75 0.4 The company’s heavy reliance on debt
Capital Ratio continues to exceed industry norms,
reflecting higher financial risk.
Gross Profit 33.99% 33.57% 20% The company maintains a better-than-
Margin average gross profit margin, reflecting
solid control over direct costs.
Operating Profit 33.99% 33.57% 12% Both years show the company is more
Margin operationally efficient than the industry
standard.
Net Profit 9.45% 6.85% 10% The company’s net profit margin is
Margin below the industry average, especially in
2024, indicating challenges with
profitability despite strong revenue
growth.
Price to 88.19 100.66 20 The P/E ratio is extremely high
Earnings (P/E) compared to the industry, indicating
Ratio potential overvaluation or market
expectations not aligned with earnings
growth.
Price to Book 94.28 90.60 3 A very high P/B ratio suggests the
Value (P/B) company is highly overvalued relative to
Ratio its book value.
Return on 10.69% 9.00% 10% The company's return on equity is below
Equity (ROE) the industry average, with a declining
trend in 2024, reflecting weaker
shareholder returns.
Return on 2.33% 1.94% 5% The company’s ROA is well below the
Assets (ROA) industry average, suggesting inefficiency
in asset utilization.
Return on 9.82% 11.21% 9% A stronger ROCE in 2024 shows the
Capital company is improving in generating
Employed profits from its capital base.
(ROCE)
Interest 1.62 2.02 5.0 Both years are below the industry
Coverage Ratio average, but 2024 shows an
improvement, indicating better ability to
cover interest expenses.
Debt Coverage 0.11 0.16 1.5 While improving, the company’s debt
Ratio coverage ratio is still slightly below the
industry average, indicating some
challenges in covering debt obligations
through operations.
Analysis
Leverage & Risk: With extremely high debt-to-equity and debt-to-capital ratios, the company
is much more leveraged than the industry. This raises the risk of money, especially when it
comes to interest and payback schedules. Even if the business increased its interest coverage
in 2024, it is still much below than the industry standard.

Liquidity: In terms of liquidity ratios, the company is performing well in comparison to the
industry. In 2024, its absolute liquid ratio, quick ratio, and current ratio were all higher than
the industry norms. This suggests a solid short-term financial situation.

Profitability & Efficiency: The business beats the industry in operational and gross profit
margins, but it falls short in net profit margin and asset utilization (ROA). This could indicate
that additional expenses, such as taxes or loans, are depleting the final result.

Concerns about Valuation: The P/E and P/B ratios are significantly higher than industry
averages, which may point to an overvaluation of the stock market. Though it is concerning if
earnings do not increase at the same rate, this may be a reflection of high market
expectations.

Returns to Investors: Although ROCE is increasing, it still indicates a poorer return on the
capital used than peers, and the company's ROE and ROA are below industry norms. This
suggests that investors may not be receiving the same profits as they could from other
businesses in the same sector.

In summary, the company has good liquidity and operational efficiency, but there could be
problems due to its high debt load, lesser profitability than peers, and possible overvaluation
in the market.

CASH FLOW ANALYSIS

1. Operating Activities' Cash Flow (CFO):

₹ 3,776.99 million in 2023
₹ 6,037.62 million in 2024.
Evaluation:
In comparison to 2023, the company's operating cash flows improved dramatically in
2024. This indicates that the business is making more money from its main
operations, an indication of improved operational efficiency. The rise may be
explained by improved working capital management, cost containment, or revenue
generation.
2. Cash outflow (cash flow from investing activities)
2023 is ₹ -4,698.62 million.
2024 cash outflow: ₹ -4,942.96 million
Evaluation:
The substantial cash outflows in 2023 and 2024 demonstrate the company's continued
heavy investment. This could involve making long-term project or capital asset
investments. While funding expansion is a good thing, these capital outflows must be
closely watched.

3. Financing Activities Cash Flow (CFF):

2023: Inflow of cash of ₹ 923.22 million
2024 cash outflow: ₹ -543.24 million
Evaluation:
The company's finance actions resulted in a net inflow in 2023, most likely from
borrowing money or issuing new stock. On the other hand, a net outflow in 2024
would indicate that the business was repurchasing shares or paying off debt. The
withdrawal in 2024 might signify a change in the direction of less reliance on outside
funding.
4. Net Cash Flow:
$1.59 million in 2023
₹ 551.42 million in 2024.
Evaluation:
The comparatively low net cash flow in 2023 suggests that the overall cash position
changed very little. Nonetheless, the company's net cash flow significantly improved
in 2024.
Key Takeaways:
Positive Operating Cash Flow: The business is making a healthy profit from its main
activities, which is indicative of sustainability.
Heavy Investing: The business has made significant investments in both years, which
could portend future expansion. But the business needs to make sure these
investments bring in enough money to offset the outflows.
funding Activities: The company appeared to rely less on external funding in 2024
compared to 2023, which may indicate better financial health or a deliberate decision
to minimize leverage.
Despite the company's huge investments, this cash flow study shows that its
operational performance has improved in 2024, resulting in better cash creation and a
healthier cash position overall.
7. CESC LTD
Chairman’s message
In the financial year, 2023-24, the company and its undertakings has made a significant
growth serving more than 4.4 million customers annually through various means such as
license distribution majorly in Kolkata and greater Noida area and a few in Rajasthan and
Maharashtra region. The year is remarkable for Indian economy in terms of GDP, which is
grew at 7.6%, which is the highest when compared to all other major economies of the world.
The growth that we are seeing is despite the setback of 3.2% in the global economic
expansion, showing India’s economic strength and resilience. The forecast of 7% GDP
growth rate for the current financial year, while taking slightly conservative approach given
by Reserve Bank of India, still makes India, the fastest growing economy of the world
holding its position for the third year.
The impressive performance of economy has made positive affect on the demand of
electricity, increasing its consumption. The company in present in several important
locations, very well positioned to use this opportunity for making profits due to the advantage
of location. Previously the company was majorly focused on distribution network, but now
expanding its domain in operating generation plants in states like West Bengal, Maharashtra
and Tamil Nadu with a capacity of approx. 2140 MW, combining all the plants. These plants
are known for their operating efficiencies and quality management.
The operations in West Bengal are growing substantially in terms of demand of power with
the peak at 2606 MW compared to the previous year where it was 2339 MW. The annual
growth in the energy requirements is 5.4% which comprises to 11,775 Units (MU). In term of
providing the connections to new customers, the company did well by providing 108,000 new
connections, with stark increase in digital payments and customer service through online
channels. When considering area outside of Kolkata i.e., Greater Noida, Kota, Bharatpur,
Bikaner and Malegaon together served more than 8 lakh customers, compared to 7.6 lakh
customers in the previous year. These consumers accounted for a increase in 4.1% sales and
the number reached 6365 Units (MU). Not only increasing profit, the company has
significantly improved its efficiency through its commitment to operational excellence. The
company’s annual income reached 15,544 crores growing at 6.8% annually, with 10.8%
increase in total expenses. The profit before tax was 1683 Crores but profit after tax was 1447
crore growing at 3.6% annually overcoming the challenges of raising power tariffs.
The vision of the company is to expand its foot print in India’s power sector by taking entry
into the renewable energy generation sector. This decision will enhance the company’s
presence significantly to match the pace with the increasing global demand and domestic
pressure on sustainability. If India is able to maintain it’s economic growth trajectory over the
next few years growing at 7.5% to 8% annually, it will steadily increase the power demand.
With its focus on innovation and operational excellence, also getting the desired financial
results, making sure about the product quality and customer centric approach, the company is
equipped to meet the customer’s demand.
Chairman Dr Sanjiv Goenka is very positive about the company’s future, especially
mentioning its strength and strategic initiatives which is the key to success. He expresses his
gratitude for the support and confidence of the stakeholders, also focusing on the ongoing
efforts, he believes that the company will achieve even greater heights in the near future.

Management Discussion and Analysis Summary

Economic Overview
The global energy market which was highly unstable recently got stable in 2023, resulting in
decrease of high soaring fuel prices which was at peak during the Russia Ukraine conflict.
However, the risk still hinders because of the increasing geopolitical tensions in the middle
east, high interest rates and substantial levels of debt. The transition to fossil fuels was
comparatively for a very short period of time, with the focus again on the renewable sources
of clean energy initiatives such as solar PV, electric vehicles and nuclear energy. The report
“The world energy outlook” has predicted a continuous reduction in the demand of fossil
fuel, achieving its peak before 2030 in light of the policies in place.

CESC Performance
CESC LTD is a part of prestigious RP Sanjiv Goenka group, which operates as an integrated
power utility managing electricity generation and distribution company focusing mainly in
region of Kolkata, Howrah, Hooghly, North and south 24 Parganas in West Bengal. It serves
3.6 million customers within the area it has license for, by supplying reliable electricity. The
business of the company consists of generation, distribution and independent power
generation projects through its subsidiaries across India.
In the financial year 2023-24, the company has seen a growth of 7.06% in its revenue
reaching INR 8,729 Crores compared to INR 8,153 crores in the previous fiscal year. The
company faced challenges in terms of increased cost in terms of operating, employee,
depreciation and financial costs, there was a growth due to improved demand conditions.
Overcoming these challenges, the consolidated total income of the company grew by 6.79%
with the expenses in total also rising by 10.83% during the year, which resulted in a marginal
increase in profit after tax to INR 1,447 crores.
Operational Risks and Management
A robust internal control system is placed by CESC Ltd that aligns with the scale and
operational nature of the organization featuring the documented policies and operational
procedures to safeguard the assets and ensures that all the compliances are followed as per
the laws. The audit department responsible for reviewing and testing these controls finds and
suggests corrective actions monitored by the audit committee and board of directors.
The non-executive director heading the organization’s risk management committee, is
responsible for regularly evaluating risks and mitigating them through systematic
categorization and management at division levels. CESC has identified several important
areas with risks which includes macroeconomic risks, market risks, and operational risks. The
significant concerns of the power sectors are related to excess generation capacity and coal
related issues, which CESC is trying to manage through long-term power sale arrangements
to buffer the risks along these challenges.
Financial Performance
The organization has seen significant improvements in its standalone and consolidated
financial performance reports in the fiscal year 2023-24. The standalone revenue from its
operational facilities grew from INR 7,973 crores to INR 8,606 crores from the previous year,
majorly driven due to high market demand. Although there was a increase in operational
expense by 18.05% from INR 7,880 crores to INR 9,303 crore, CESC ltd was able to
maintain its profit margins. The consolidated revenue from operations have also increased,
achieving a significant mark of INR 15,293 crore up from the earlier figure of INR 14,246
crore in fiscal year 2022-23. But there was also increase in total expenses across various
categories including but not limited to employee benefits, depreciation and financial costs.
Regulatory Compliance and Environment, Social, Governance (ESG) Initiatives
CESC is committed to follow ethical code of conduct by meeting its regulatory obligations
and has implemented several ESG initiatives to support long-term sustainable growth
fulfilling its responsibility towards a better environment. The company ensures compliance
with environmental regulations, including 100% ash utilization in its generating stations and
effective timelines for implementing Flue Gas Desulfurization (FGD) systems at thermal
plants. The company’s ESG strategy is integrated into its business operations and risk
mitigation frameworks, reflecting its commitment to responsible and sustainable business
practices beyond statutory requirements of the government.
Outlook
The outlook for the Indian power sector is positive, majorly driven by the shift towards
electricity as a primary energy source having wide applications throughout. Projections
indicate a strong growth trajectory for electricity generation, with the sector poised to benefit
from economic expansion and government policy initiatives aimed at boosting
manufacturing, electric vehicle adoption, and universal electricity access. CESC, with its
extensive expertise in power generation and distribution, is well-positioned to capitalize on
these trends
Future Growth and Challenges
Despite regulatory and operational challenges, CESC is focused on enhancing operational
efficiency and customer service through technological innovation and strategic investments,
particularly in renewable energy. The company aims to optimize its generation capacities and
reduce distribution losses, with an emphasis on digital solutions to streamline maintenance
and customer care. Looking forward, CESC plans to further strengthen its position in the
market by expanding its capabilities in renewable energy and other growth-oriented sectors
Cash Flow analysis:
The cash flow data presented offers a comparative analysis between March 2023 and March
2024. Below is a detailed examination of the cash flow across various categories and its
implications:
Key Insights:
Cash from Operating Activity:
Mar-23: ₹1,978.35 million
Mar-24: ₹2,351.41 million
The operational cash flow has shown significant improvement, rising from ₹1,978.35 million
in March 2023 to ₹2,351.41 million in March 2024. This increase suggests enhanced
profitability or more effective management of working capital. A robust cash flow from
operations is crucial for sustaining the company's daily operations, and this upward trend is a
favorable indicator.
Cash from Investing Activity:
Mar-23: ₹-544.70 million
Mar-24: ₹-563.60 million
The company has consistently allocated funds towards investments, although the cash
outflow has seen a slight increase in 2024. Negative cash flow in this category is typical,
particularly when a company is investing in long-term assets or acquisitions. This trend
indicates a commitment to growth, but it is essential for the company to ensure that these
investments yield returns in the future.
Cash from Financing Activity:
Mar-23: ₹-2,457.15 million
Mar-24: ₹-1,641.63 million
The outflow from financing activities has decreased in 2024 compared to the previous year.
This reduction may reflect lower debt repayments, decreased dividend distributions, or
adjustments in the capital structure. A diminished outflow suggests that the company may
have repaid some of its debts or lessened its dependence on external financing. It could also
indicate a reduction in funds raised through equity or loans.
Net Cash Flow:
Mar-23: ₹-1,023.50 million (negative)
Mar-24: ₹146.18 million (positive)
In March 2023, the company experienced a negative net cash flow, characterized by greater
outflows than inflows, largely due to substantial financing outflows. However, by March
2024, the company has achieved a positive net cash flow
Ratio analysis:

Ratio 23-Mar 24-Mar

Current Ratio 1.68 2.26
Quick Ratio 1.47 2.06
 Debtors Turnover Ratio 6.5 6.78
Inventory Turnover Ratio 16.18 17.41
Working Capital Turnover
6.69 4.21
Ratio
Asset Turnover Ratio 0.38 0.41
Debt to Equity Ratio 1.25 1.23
Gross Profit Margin 15.98% 14.87%
Operating Profit Margin 15.96% 14.88%
Net Profit Margin 9.43% 8.99%
Price to Equity 6.58 11.72

Analysis:
Liquidity Ratios (Current & Quick Ratios): The current and quick ratios have shown
significant improvement in 2024, reflecting enhanced short-term liquidity and overall
financial stability.
Debtors Turnover Ratio: The slight increase in the debtor turnover ratio in 2024 indicates that
the company is becoming more efficient in collecting receivables.
Inventory Turnover: An improvement in this ratio suggests that the company is effectively
managing its inventory, likely converting stock into sales more efficiently.
Working Capital Turnover: The decrease from 6.69 to 4.21 indicates a less efficient
utilization of working capital in 2024, which may be attributed to an increase in working
capital that has not been matched by a corresponding rise in sales. Asset
Turnover Ratio: A modest increase from 0.38 to 0.41 indicates improved asset utilization in
generating revenue.
Debt to Equity Ratio: The stability of the debt-to-equity ratio, with a slight decrease, suggests
that the company is effectively balancing its debt and equity financing.
Margins (Gross, Operating, Net): A slight decline in all margins in 2024 indicates rising
expenses and a reduction in profitability relative to sales.
Price to Equity Ratio: The significant increase in this ratio from 6.58 to 11.72 implies that the
market is placing a higher value on the company's earnings in 2024, potentially due to
expectations of future growth.

23- 24- Industry

Ratio Analysis
Mar Mar Average

Current Ratio 1.68 2.26 1.2 Strong liquidity position.

 Quick Ratio 1.47 2.06 0.8 Excellent short-term solvency.

Debtors Turnover Lower efficiency in collecting

6.5 6.78 10
Ratio receivables.

Inventory Turnover Very efficient inventory

16.18 17.41 2
Ratio management.

Working Capital
6.69 4.21 2.5 Efficient use of working capital.
Turnover Ratio

Asset Turnover Ratio 0.38 0.41 0.8 Low asset utilization.

Higher financial leverage than the

Debt to Equity Ratio 1.25 1.23 0.6
industry.

Below industry standard, declining

Gross Profit Margin 15.98% 14.87% 20%
trend.

Operating Profit Operating margin is solid but

15.96% 14.88% 12%
Margin slightly declining.

Net Profit Margin 9.43% 8.99% 10% Margins below industry average.

Price to Earnings
6.58 11.72 20 Undervalued compared to peers.
(P/E)

Analysis:
1. Liquidity Ratios (Current and Quick Ratios):
The company's current and quick ratios are significantly higher than the industry
average, indicating strong liquidity. The company is well-positioned to cover its short-
term obligations, and this improved further in 2024.
2. Debtors and Inventory Turnover Ratios:
Both ratios are below the industry standards. A higher industry average suggests that
the company could improve its efficiency in managing receivables and inventory. The
company's inventory turnover is quite strong compared to the industry average,
showing efficient inventory management.
3. Working Capital Turnover Ratio:
The company's ratio is much higher than the industry average, indicating it is
generating more sales for every unit of working capital, though it slightly dropped in
2024.
 4. Asset Turnover Ratio:
The company lags behind the industry in asset utilization, as indicated by a lower
asset turnover ratio. It should work on improving asset efficiency.
5. Debt to Equity Ratio:
The company's debt levels are higher than the industry average. While they improved
slightly in 2024, the company has a more leveraged structure compared to the industry
norm, which could pose a risk if not managed carefully.
6. Profit Margins (Gross, Operating, and Net):
The company’s profit margins are below the industry averages, especially the gross
profit margin, which has declined slightly in 2024. The lower net profit margin in
2024 reflects an increase in expenses or lower revenue growth compared to the
industry.
7. Price to Earnings (P/E) Ratio:
The company's P/E ratio has increased significantly from 2023 to 2024 but remains
much lower than the industry average. This could indicate that the market is valuing
the company less optimistically compared to its peers.

Conclusion
CESC Limited remains a key player in India’s power sector, leveraging its established
presence and diversified operations to deliver consistent performance. The company’s
commitment to ESG principles, robust risk management framework, and strategic focus on
efficiency and customer service will likely support its continued growth and resilience in the
evolving energy landscape. The positive economic outlook and ongoing energy transition
present significant opportunities for CESC to enhance its operational and financial outcomes
in the coming years

8. JSW ENERGY
Message from the Chairman
Mr. Sajjan Jindal, the Chairman and Managing Director of JSW Energy, said with reference
to his message that FY24 will be a transformative year for JSW Energy which will witness a
pure shift in strategy. Taking a leap forward beyond the simple energy generation company,
JSW Energy is transforming itself into an energy solution company – from generation to
storage and supplier of energy products and services. This one is a more extensive strategy
and comes with the purpose of increasing the company’s market appeal and utility.

In the FY24, JSW Energy registered significant advancement in developing the capacity
achieved its total installed capacity of 7. 2GW comprising of thermal, hydro, solar and wind
power plants. It announced 4 GW capacity of projects through competitive bidding and thus
taking total capacity secured at 13. 2 GW. Furthermore. there are 6 GW of projects under
construction that will be commissioned by the FY25 which will enable the company to
achieve the set capacity of 10GW by the targeted year of FY25. This growth is seen based on
JSW Energy’s strategic aim of expanding in its operation and invest more in renewable
energy sources.

The CEO of JSW Energy, Mr. Jindal also focuses on energy storage as a key market where
the company is already starting to establish itself. Thus, JSW Energy remains committed to
investing in Battery Energy Storage Systems (BESSs) and hydro-pumped storage projects so
as to solve for intermittency problems of renewable power. It is also diversifying into
equipment manufacturing such as solar PV panel & windmill in order to manage risks
involved in supply chain and also to improve flexibility.
The target of the company is to achieve a 20 GW power generation group by 2030, backed by
its good pipeline projects and sound infrastructure. Mr. Jindal believes that by healthy power
demand, efficient execution of projects, and financial organizations, the company can make
their 2030 goals move faster. JSW Energy also focuses on sustainability and its long-term
goal is to decrease greenhouse gas emissions by 50 percent by the year 2030 and achieve zero
carbon emissions by the year 2050 to support the world in reducing the impacts of climate
change.

The strategic plans of JSW Energy are in light of the increasing energy demands in
India and particularly the government’s focus toward green energy. Supply will increase by
5% in FY24 because of urbanization and industrialization and with the increased use of
electrical appliances. With further development of India further exerting pressure towards
enabling availability in reliable and sustainable energy for the growing economy, JSW
Energy stands to greatly benefit from these opportunities.

Moving into the future, as pointed out by Mr. Jindal, the firm plans to spend roughly
₹115,000 crore in order to capture strategic goals in the form of augmenting renewable
energy generation, advancing energy storage systems and research into novel solutions such
as green hydrogen. The company also has potential in the acquisition plans in order to
enhance its market presence. The address clearly defines JSW Energy vision of continued and
sustainable growth, innovation and value creation under the leadership of Mr. Jindal as it
seeks to chart the course for the generation, distribution of clean power, the development of
Indian Infrastructure and supporting the nation’s move to energy security, environmental
sustainability and carbon free future.

Management Analysis report summary

The following part of the JSW Energy’s Annual Report for FY 2023-24 contains a detailed
review of the Management Discussion and Analysis that includes the company’s operations,
financial results, the state of the industry, and the company’s positioning and plans. The
following part of the work is aimed at providing the readers with the necessary level of
insight into how the company operates in the existing market environment and attempts to
reposition itself in the future.

1. Global and Domestic Economic Overview:

The MD&A starts with the presentation of the company’s performance in the light of the
world and domestic economy. According to the World Bank data, in 2023 the growth was
3.2% percent of the global GDP with sustainable growth rates showing the ability to hold up
in the face of higher interest rates where it was evident across all sectors particularly the
credit and housing sectors. Observed inflation rates were even lower than expected, thus
leading to higher GDP real per capita income growth and apprentice positive trade growth
rates. The IMF expects that the global growth will remain somewhat stagnant as anticipated
at 3 percent. Around of 2% for the 2024 and 2025 backed by healthy government and private
expenditure in developing and developed economies. In India the GDP growth was rather
high with 8.2% for FY24 due to escalated manufacturing as well as construction processes
which shall contribute to the energy demand augmentation effected scenario.

2. Industry Trends and Market Dynamics:

Indian power sector has been able to grow at a rate of 7.5 percent rise in power demand and
has predicted a peak demand of 243 GW in September this year. This growth is as a result of
the following factors; population increase, urbanization, industrialization, government
policies on the adoption of electricity and renewable energy sources. The report says that
renewable energy sector in India is likely to grow at a faster pace in the coming years because
government has set an ambitious target of adding 1,75,000MW of renewable energy by 2022,
out of which 100 GW will be solar, 60 GW wind and remaining will be based on energy
storage solutions. Nevertheless, the renewable energy sector was subjected to problems like
intermittency issue, grid stability, and policy restrictions to which JSW Energy intends to
spend in energy storage technologies
3. Operational Performance:
JSW Energy demonstrated good operational capabilities its total production capacity was 7.2
GW crossing the capacity mark in thermal power plants along with hydro, solar and wind
power in the Country. The company commissioned 2.2325 MWs of capacity in the past two
years signifying a CAGR of 26%. Renewable portfolio of the company increased enormously
thanks to the newly commissioned solar and wind power plants as well as the acquisition of
more renewable plants. Currently, 6.2 GW of such projects are under construction that are
expected to be completed by FY25. It is stressed in the MD&A that such activities are carried
out to support JSW Energy strategy of a 50% greenhouse emission cut by 2030 and attaining
zero carbon by 2050.

4. Strategic Initiatives:
At JSW Energy several strategic processes are being implemented to adapt as a complete
energy solutions company. Key initiatives include:

Expansion into Energy Storage:

To deal with the variability of renewable energy sources and to also ensure the stability of the
electricity grid, the company is developing battery energy storage systems (BESS) and hydro-
pumped storage projects. It is believed that these investments will be very strategic in the
company’s plan to provide the reliable and sustainable energy services.

Supply Chain De-risking:

In view of these risks, JSW Energy is diversifying into equipment manufacturing such as the
solar PV panels and wind turbines. By so doing it will enhance credibility of self-supplied
material as well as enhance efficiency on project delivery.

Exploring New Technologies:

The company now targets new forms of energy including using green hydrogen and its by-
products that are anticipated to be instrumental in energy transition. These strategies are
meant to place JSW Energy on the map of a new business model of electrification and
increasing the firm’s Total Addressable Market.
5. Financial Performance:
The JSW Energy for the FY24 has captured a healthy number of financial performances, the
company has posted the highest EBITDA at ₹ 5,837 crore, up by 53% year on year. This was
on a total income of ₹ 11,941 crore, up by 10% from last year and the Profit After Taxes
(PAT) summed up at ₹ 1,723 crore, a rise of 17% over the year that went by. For this financial
performance the company added to the renewable energy asset base, strong sales in the
thermal segment, and good cost management were main factors. A good example is that JSW
Energy has a good balance sheet as well as enormous cash inflows, enabling it to fund
ongoing and future development plans.

6. Risk Management:
There the company describes risk management process in the form of managing risks
throughout the company in all operations as noted in the MD&A section. Some of the risks
that must be considered include market risks, regulatory risks as well as operational risks that
are related to the implementation of the large-scale generation of renewable energy. To
mitigate these risks, JSW Energy uses several risk management techniques such as;
Development of a portfolio of energy to ensure that they source a wider market to supply the
needed energy, Engagement between the company and the regulating authority, and frequent
check and balances on the timeliness and prices of the projects’ execution. the company also
sees that it is important to ensure that the borrowing arrangements contain an appropriate
proportion of fixed and floating rate borrowings in order to have control over the interest rate
risk.

7. Sustainability and ESG Commitments:

Sustainability is a strategic agenda to JSW Energy. Environmental, social and governance

initiatives are another area that has received attention; having policies such as cutting down
on carbon footprint, increasing on energy efficiency, and being socially responsible. In FY24,
the company has got the leadership rating in climate change reportage and AMS in Dow
Jones Sustainability Index. Some of the activities that the company has been engaging in with
intent of ensuring that its environment is sustainable include tree planting, water resource
management as well as social responsibility such as investing in community development.
Cash from Operating Activities:
- March 2023: ₹2,084.27
- March 2024: ₹6,233.63
Observation: There has been a substantial increase in cash generated from operating
activities, indicating that the company's core operations have become much more efficient at
generating cash, likely due to better sales and cost management.

Cash from Investing Activities:

- March 2023: -₹6,778.13
- March 2024: -₹8,197.13
Observation: The negative cash flow from investing activities has increased in 2024,
suggesting that the company is making larger investments in capital expenditures or
acquisitions. The rise in capital work in progress on the balance sheet supports this trend, as
the company allocates more funds towards long-term assets.

Cash from Financing Activities:

- March 2023: ₹7,327.48
- March 2024: ₹1,674.83
Observation: There has been a significant decline in cash inflows from financing activities,
indicating a slowdown in raising debt or equity. This may reflect a strategic choice to depend
less on external financing or could suggest that the company repaid or reduced its debt during
the year. The decrease in financing inflows may also be influenced by rising interest
expenses, prompting a more cautious approach to acquiring new debt.

Net Cash Flow:

- March 2023: ₹2,633.62
- March 2024: -₹288.67
Observation: The company had a positive net cash flow in 2023 but faced a negative cash
flow in 2024. Despite strong cash inflows from operations, increased capital expenditures and
lower financing inflows resulted in a net cash outflow. This may indicate a transitional phase
where the company is investing in long-term growth while managing debt more
conservatively.

Analysis:
- Enhanced Operational Efficiency (2024): The significant rise in cash generated from
operations in 2024 suggests improved profitability and potentially quicker turnover in
receivables and inventory, reflecting better operational management.
- Increased Capital Expenditure: The widening negative cash flow from investing activities
indicates that the company is actively investing in growth, likely in fixed assets or expanding
operational capacity, as shown by the capital work in progress figures.
- Decrease in Financing Activities: The sharp decline in cash from financing activities
suggests that the company has reduced its borrowing, possibly to manage interest costs. This
reduced inflow, combined with higher capital investments, contributed to an overall negative
net cash flow.
- Cash Flow Volatility: The transition from positive to negative net cash flow indicates that
while the company is generating strong cash from operations, it must better manage its
financing and investment activities to prevent cash shortages.

Conclusion for cash flow:

In summary, while the company has made operational improvements and is generating
significantly more cash from its core business, its aggressive capital expenditures and
reduced financing activities have resulted in negative cash flow in 2024. Moving forward, the
company should aim to balance its investments with financing decisions more effectively to
sustain a healthy cash flow.
Financial Ratio Analysis: March 2023 and March 2024
This report outlines the computation and evaluation of various financial ratios for the fiscal
years ending in March 2023 and March 2024. These ratios offer valuable insights into the
company's financial stability, liquidity, operational efficiency, profitability, and leverage.
1. Current Ratio:
March 2023: 2.19 | March 2024: 1.46
Analysis: The company's capacity to settle its short-term obligations has diminished over the
year, as evidenced by the decline in the current ratio from 2.19 to 1.46.
2. Quick Ratio (Liquidity Ratio):
March 2023: 1.98 | March 2024: 1.30
Analysis: In line with the current ratio, the quick ratio has also experienced a decrease,
reflecting a diminished ability to address immediate liabilities with its most liquid assets.
3. Debtors Turnover Ratio:
March 2023: 6.75 | March 2024: 13.61
Analysis: A notable enhancement in the debtor’s turnover ratio indicates that the company
has become more efficient in collecting payments from its debtors in 2024 compared to 2023.
4. Inventory Turnover Ratio:
March 2023: 10.47 | March 2024: 13.83
Analysis: The company has demonstrated improved inventory management, as suggested by
the increased inventory turnover ratio.
5. Working Capital Turnover Ratio:
March 2023: 1.32 | March 2024: 1.87
Analysis: An elevated working capital turnover ratio implies a more effective use of working
capital in generating revenue in 2024
6. Asset Turnover Ratio:
March 2023: 0.21 | March 2024: 0.20
Analysis: The asset turnover ratio has remained relatively stable, indicating consistent
efficiency in utilizing assets to generate sales.
7. Debt-Equity Ratio:
March 2023: 1.35 | March 2024: 1.60
Analysis: The increase in the company's debt-equity ratio suggests a higher level of debt
relative to equity, which may elevate financial risk.
8. Debt to Total Capital Ratio:
March 2023: 0.57 | March 2024: 0.60
Analysis: The company is increasingly depending on debt financing as a share of its total
capital, rising from 57% to 60%.
9. Operating Profit Margin:
March-23: 31.76% | March-24: 46.85%
Analysis: The notable enhancement in the operating profit margin signifies improved
operational efficiency and effective cost management.

10. Net Profit Margin:

March-23: 14.30% | March-24: 15.00%
Analysis: The slight increase in the net profit margin indicates enhanced profitability at the
bottom line, despite a rise in interest expenses.
11. Price to Equity:
March-23: 26.81 | March-24: 50.49
Analysis: The substantial increase in the price to equity ratio implies that the stock price has
escalated significantly in relation to earnings per share.
12. Interest Coverage Ratio:
March-23: 3.89 | March-24: 2.62
Analysis: The decline in the interest coverage ratio suggests a deterioration in the company's
capacity to fulfill its interest obligations.
13. Debt Coverage Ratio:
March-23: 0.13 | March-24: 0.17
Analysis: The improvement in the debt coverage ratio indicates that the company is in a
stronger position to meet its debt obligations from operating income.
Analysis:
1. Liquidity Position:
o The company's current ratio and liquidity ratio are slightly better than the
industry average, indicating strong liquidity and an ability to meet short-term
obligations.
o The absolute liquid ratio is also above the industry standard, reflecting the
company's improved cash position or short-term liquid assets.
2. Operational Efficiency:
o Debtors turnover ratio improved significantly in 2024, indicating faster
collection of receivables, which could positively impact the company's cash
flows.
o The inventory turnover ratio is much better than the industry average,
showcasing exceptional inventory management.
o The working capital turnover ratio is also stronger than the industry
average, signaling that the company efficiently manages its short-term assets
and liabilities.
3. Leverage and Solvency:
o The company's debt-equity ratio is slightly above the industry standard but
remains within a reasonable range, showing a balanced approach to leveraging
debt.
o However, the debt to total capital ratio is higher than the industry, indicating
the company relies more on debt to finance its capital, which might increase
financial risk.
o The interest coverage ratio and debt coverage ratio are below the industry
average, signaling that the company may face some challenges in meeting its
debt obligations, especially in a higher interest rate environment.
4. Profitability:
o The gross profit margin, operating profit margin, and net profit margin
are all significantly higher than industry averages, reflecting strong cost
control, operational efficiency, and profitability.
 o Price to earnings (P/E) ratio is much higher than the industry average,
indicating that the market may have high expectations for future growth, or the
stock could be overvalued.
o The price to book value (P/BV) ratio is slightly below the industry average,
indicating that the company might be fairly valued compared to its book value.
5. Returns:
o The return on equity (ROE) and return on assets (ROA) are both below the
industry average, suggesting room for improvement in generating returns on
shareholder equity and assets.
o The return on capital employed (ROCE) matches the industry average,
showing that the company is performing on par with peers in utilizing capital
to generate returns.

23- 24- Industry

Ratio Comparison (Mar-24 vs. Industry)
Mar Mar Average

Current Ratio 1.3 1.3 1.2 Slightly higher, indicating strong liquidity

Liquidity Ratio 0.9 0.9 0.8 Better than average liquidity position

Absolute Liquid Above average, reflecting good short-term

0.6 0.7 0.5
Ratio liquidity

Debtors Turnover Higher, indicating efficient collection of

8.1 12.1 10
Ratio receivables

Creditors Turnover Close to average, indicating good payment

9.4 8.5 8
Ratio terms management

Inventory Turnover Significantly better, showcasing efficient

10.47 13.83 2
Ratio inventory management

Working Capital Better than average, showing strong

2.4 3.1 2.5
Turnover Ratio utilization of working capital

Asset Turnover Below industry, indicating potential

0.4 0.5 0.8
Ratio underutilization of assets

Debt Equity Ratio 0.57 0.64 0.6 Slightly above, showing balanced leverage

Debt to Total Higher than average, indicating higher

0.48 0.55 0.4
Capital Ratio leverage
 Strongly outperforming industry, showing
Gross Profit Margin 31.70% 40.50% 20%
efficient cost management

Operating Profit
31.70% 46.90% 12% Much higher, reflecting strong profitability
Margin

Above average, indicating higher net

Net Profit Margin 14.30% 15.00% 10%
income generation

Price to Earnings Much higher, possibly indicating

26.81 50.49 20
(P/E) overvaluation or high growth expectations

Price to Book Value Slightly below average, indicating fair

1.4 2.7 3
(P/BV) valuation

Return on Equity Below industry standard, indicating lower

8% 8% 10%
(ROE) profitability on equity

Return on Assets Below average, implying potential

3% 3.80% 5%
(ROA) underperformance on asset utilization

Return on Capital Matches industry, indicating average

8% 9% 9%
Employed (ROCE) efficiency in generating returns from capital

Interest Coverage Lower, signaling potential risk in meeting

2.3 2.6 5
Ratio interest obligations

Debt Coverage Below average, indicating potential cash

0.8 0.9 1.5
Ratio flow stress in covering debt

Conclusion
Future outlook for growth with the growing demand of electricity in India, JSW Energy is
confident of registering higher growth in the coming years with state policy support in favor
of renewable energy sources. The company envisages to spend about ₹115,000 crore for
adding about 20 GW of generation capacity and 40 GWh of storage by 2030. This investment
will be utilized in adding new renewable power generation, in the advancement of energy
storage systems, and in the new frontiers including green hydrogen. COVID-19 pandemic:
MD&A restates JSW Energy Limited’s ambitions to turn into the country’s Integrated Power
Company offering affordable, reliable, and sustainable solutions to meet the energy demand.
9. ADANI POWER
Sri Gautam Adani-Message of Chairman
2023 was the most challenging year for the Adani group as there were calculated attacks
by US-based short sellers to damage both the Adani group’s Reputation and Financial Standing.
Even though there was a lot of Scrutiny and Political pressure, the company showed persistence
by raising enough funds, giving back to the investors the FPO (follow-up public offer), and
significantly reducing Adani Group’s Debt to EBITDA ratio from 3.3x to 2.2x, which showed
the financial stability of Group. Adani group as a whole emerged stronger, got the confidence
of Global investors, and the Supreme Court of India validated the group’s identity.
India’s Growth: - The growth of India is eminent among the global uncertainties, which
includes geopolitical tensions in the West. The country has remarkable growth with declining
fiscal deficits, increased exports and inflation under control, and a huge increase in people's
income levels. This growth is further fuelled by declining poverty, expanding consumption,
strengthened corporate sectors, and reduced bank NPAs, all driven by strong domestic demand
and record FDI. The country's growth is mainly due to the government’s clear and consistent
policies for the welfare of its citizens under various initiatives like DBT (Direct Benefit
Transfer), Ayushman Bharat, which provided health care for crores of citizens, PM Ujjwala
Yojana, and Jal Jeevan Mission which brought social progress which empowered people and
fostering ambition. India became the fastest-growing nation with more excellent stability and
progress on the global level, which was showcased in the G20 presidency. As the nation grows,
companies like the Adani Group are intertwined with India’s rise, contributing to its success
and vision for the future.
As the nation is growing and the target Infrastructure growth is target at 2 trillion dollars
by 2030, as the group’s focus is aligned with this, Adani group has an eminent future ahead.
Adani Power's operating capacity increased by 12% to 15,250 MW, with the commissioning
of the 1,600 MW Godda ultra-supercritical thermal power plant.
Adani Group’s approach to Corporate Social Responsibility (CSR activity) is the next
topic highlighted in the chairman’s message. The extensive work of the Adani Foundation,
which has reached 9.1 million individuals across 6,769 villages in 19 states of India,
demonstrates a strong commitment to uplifting lives and adopting sustainable development
nationwide. The principle of “Growth with Goodness” is the main thing happening to the group
to strive to add long-term value to the communities. This commitment to CSR is reflected in
various initiatives addressing a wider range of societal needs. Few Initiatives like the Adani
Saksham program have empowered 169,000 young individuals by providing them with the
necessary skills that enhance their employability and entrepreneurial potential. In the
Agricultural sector, 26,000 acres of land were revitalized by introducing sustainable practices
and natural farming techniques that promise a greener tomorrow. In the Healthcare sector,
through health outreach programs, including mobile healthcare units and camps, the foundation
has helped the lives of 2 million people, ensuring essential healthcare services reach the remote
communities of the nation. These initiatives reveal a story of transformation, capacity, and
community renewal. The Adani Foundation's mission is to make a meaningful and sustainable
impact on society. The foundation is always tied up to the necessities of people of remote
communities which indeed creates a positive atmosphere among the nation.
 A Shared Destiny: - The group's challenges last year strengthened their resolve. They
draw inspiration from the very resilience that India embodies. The road ahead is paved with
extraordinary possibilities, and he promised the investors that the Adani group today is more
vital than ever. “Hum Harke Dikhayenga” with this, he ends the chairman’s message.

Management Discussion & Analysis

Global Economic Overview
In the global economic platform, 2023 has remained with significant challenges, such
as geopolitical tensions and volatile energy markets with tight monetary policy to contain
inflation by 2023; the global economic growth showed a decline of 3.2%. The US also showed
a steady growth of 2.5% GDP in this uncertain situation. Since the European market has been
hit with tensions from the Russia-Ukraine conflict, the average price for energy has also
increased drastically. China’s economy expanded significantly, growing 5.2% in 2023 and
3.0% in 2022. Global inflation fell from 8.7% in 2022 to 6.8% in 2023, raising optimism in the
economy conditions, In addition to the fact that uncertainty about future interest rate cuts
remains , the average price of Brent crude fell to US$1. $83 per barrel by 2023, while coal
prices also fell. But global coal demand is forecast to decline by 2026 as renewable energy
expands and environmental concerns accelerate the move away from fossil fuels.
Power Industry Scenario
The installed generation capacity of the nation is 442 GW. India’s power demand comes
from various sources like hydro, thermal, nuclear, and renewable energy, which are major
sectors. Despite having a major focus on renewable energy, the Thermal power plant continues
to act as the foundation for the power sector, supporting the major base loads. The demand for
the power sector with the domestic load has the highest growth at 5.2 %. Maharashtra has the
highest demand and highest growth among states, with 1,86,573 Million units consumed. This
sector has predicted a growth of 6.2 % CAGR. Our nation has reduced the power Deman and
supply Deficit by a high level by promoting rigid transmission and distribution and promoting
private players in the industry; Adani Power is 1st the private power producer in the nation.
The current deficit stands at 0.7% with peak deficit being 1.4%. Adani Power has the power
generation capacity of 15,250 MW, consisting of 15,210 thermal and 40 MW solar as installed
capacity. This company also exports 1600 MW power to Bangladesh.
Company’s Operating Performance
The company has a Plant load factor of 64.7 % compared to 47.9 % in the last financial
year. This is due to reduced PPA floating coast across the TTPs as the imported coal costs
decreased. PPA Sale volume rose from 44.4 BU (Billion Units) in FY 2022-23 to 65.3 BU in
FY 2023-24. This is largely due to an increase in demand and Coal price reduction in the market
with the best O&M practices in this industry.
Financial Performance
The Consolidated Total Income grew by 40% at 60,281 crore. This growth is mainly due to
higher volumes, better forecasting, and improved capacity. The total income included of prior
period revenue of 9,322 crore on account of domestic coal shortfall, carrying cost and late
payment surcharge under PPAs. EBITA for FY 2023-24 stood higher by 96% at 28,111 crore
compared to 14,312 crore for FY 22-23. This increase in EBITA was due to improved fuel cost
recovery and the inclusion of a new plant in Godda. The company main strategy of placing
plants near the coal mines had greatly worked due to which Adani power has proximity
advantage to competitors for transportation of raw materials.Depreciation has increased to
3,931 crore in FY 23-24 from 3,304 last year due to the addition of the Godda power plant.
Finance cost Increased to 3,388 due to additional borrowing for Godda Power plant with
partially offset reduced interest on current debts.Profit After Tax increased to 20,829 crore from
10,727 crore. Total Comprehensive Income has grown from 10,760 crore to 20,801.Total
Borrowings has reduced to 34,457 crore from 42,252 crore due to prepayment of term loans.
Financial Metrics
Total Trade Receivables to Total Revenue decreased from 96 days to 70 days. Inventory
Turnover days increased from 44 to 36 days. Current Assets to Current Liabilities ratio
increased from 1.10 to 1.62. Debt to Net worth decreased from 1.19 to 0.80 and Debt to EBITA
decreased from 2.48 to 1.22. EBITDA to total Revenue is at stronger position of 47 %. PAT
Margin is also at 35 % with pervious one being 25 %.
Judiciary Developments
The merger of subsidiaries happened successfully. SC holding all the petitions
regarding regulations. Other than that, SC dismissed various appeals of state electricity boards
like Maharashtra State Electricity Distribution Company Limited against three orders.
Rajasthan Distribution Companies (“DISCOMs”) against two orders.
Inorganic Acquisitions
Coastal Energen Private Limited(CEPL): - CEPL is undergoing the Corporate
Insolvency Resolution Process under the Insolvency and Bankruptcy Code 2016 by the
Committee of Creditors. Adani Power is part of the Consortium with a 49 % stake in that. CEPL
has net installed and operation of 1200 MW plant in Tuticorin in Tamilnadu. This plant
Acquisition will give access for Adani Power in Southern India.
Lanco Amarkantak Power Limited: - Similar Kind of Bankruptcy is happening in
LAPT where the aegis is under the National Company Law Tribunal. LAPL has 600 MW
operating and 2*660 MW future expansion project. Acquisition of this plant will strategise
Adani Power’s expansion in central India as it holds lot of coal mines.
Cash flow analysis
Cash from Operating Activities (CFO):
The company’s cash from operations improved from Mar-23 to Mar-24, increasing by 68%
(from ₹8,430.53 to ₹14,170.15). This sharp rise indicates more robust business operations,
higher profitability, and better working capital management.
Cash from Investing Activities (CFI):
The company’s inflows from investing activities also increased, from ₹1,544.79 in Mar-23 to
₹3,480.90 in Mar-24, reflecting a more aggressive or efficient investment strategy. The
increase in cash inflows from investing suggests that the company might be either liquidating
assets or receiving higher returns from prior investments.
Cash from Financing Activities (CFF):
The cash outflow related to financing activities grew significantly, from ₹-10,408.46 in Mar-
23 to ₹-16,864.03 in Mar-24. This substantial outflow suggests that the company is paying
off its debt more aggressively to strengthen its position and gain more trust from the
Shareholders and Lenders.
Net Cash Flow:
The net cash flow was negative ₹433.14 in Mar-23 but turned positive to ₹787.02 in Mar-24.
The positive shift is driven by much stronger operational cash flows, which offset the larger
outflows in financing activities. This turnaround in net cash flow reflects improved liquidity
and financial health.
Adani Power’s cash flow profile has improved significantly in March 24, primarily
driven by more robust cash generation from operations and increased cash inflows from
investing activities. However, the high cash outflows from financing indicate an ongoing
focus on debt repayment, which, while improving financial stability, could constrain future
cash availability for investments or dividends. The overall trend is positive, with more
substantial cash flow from operations being a key driver of the company’s enhanced financial
health.
Ratio Analysis
Liquidity Ratio
1. Current Ratio (Current Assets / Current Liabilities)
2023: 17198.8 / 14924.01=1.15
2024: 20650/12416= 1.66
Industry average = 1.2
2. Liquidity Ratio (Quick Ratio)
Formula:
LR= (Current Assets – Inventories- Prepaid expenses) / Current Liabilities
2023: (17198.8-2324.07) / 14924.01=0.99
2024: (20650-8474.89)/12416= 1.38
Industry average = 0.8
3. Absolute Liquid Ratio
Formula:
ALR= (CASH+Cash Equivalent) / CL
2023: 1692.34 / 14924.01= 0.11
2024: 5693.72 /12416= 0.45
Industry average = 0.5
 Inference: This shows that Adani Power has drastically reduced its short-term
liabilities and increased its current assets, showing it had strengthened itself after
the Hindenburg scandal. LR increase shows that the company has better utilization of
inventory, and an increase in ALR shows that the company’s cash and cash equivalent
to cover its short-term expenses is readily available. Compared with the industrial
average, it’s slightly lower, but comparing LR and CR shows that the company has
strengthened its short-term liabilities by earning the trust of the vendors and
associates.
Activity Ratio
4. Debtors Turnover Ratio
DTR= Revenue from Operations/Average Trade Receivables
2023: 36681.21/11380.93 = 3.22
2024: 39204.57/ 9038.04 =4.337
Industry Average = 10
An increase in the debtor turnover ratio generally indicates that a company collects
customer payments more efficiently. This is a positive sign, reflecting better cash flow
and credit management. And Comparing the Industrial Average also as customers is
maximum government, they are properly negotiating terms with SLD’s to settle the
payment faster

5. Creditors Turnover Ratio

CTR=Cost of Goods Sold / Average Trade Payables
2023: 24,721.56/ 2387.38 = 10.35
2024: 22640.57 / 2665.61 = 8.493
Industry Average = 8
This shows that initially, the company was settling fast with its vendors and Coal
yards (Coal India) for inventories, but as the industry average is lesser than their
settling time with their suppliers, they started taking more time, i.e., 42.97 days, from
35.26 days in the previous year. The industry average is 45.5 days, which indicates
Adani Power is on the right path.

6. Inventory Turnover Ratio

ITR= Cost of Goods Sold / Average Inventory
2023: 24,721.56/ 2324.07 = 10.63
2024: 22640.57 / 2899.48 = 7.808
Industry Average = 2
The increase in ITR indicates the company has been in Reserve shutdown for a longer
period as they increased the variable cost of the sales per unit, which made the coal
lying in the yard for a longer period. But compared to the industry average, it’s way
above as many plants are shut down due to the variable coal demand in the industry.
This also shows that the company is not forecasting the needs but buying the raw
materials, leading to excess inventory.

7. Working Capital Turnover Ratio

 WCTR= Sales / Avg. WC WC= CA-CL
2023: 36681.21 / (17198.13-14924.01= 16.12
2024: 39204.57/ (20650.82-12416.33) = 4.76
Industry Average = 2.5

A significant decrease in the working capital turnover ratio (about 1/4th)

suggests that the company uses its working capital much less efficiently. It might be
due to the company holding more cash to show its strength. But compared to
the Industrial average, it’s higher, showing that the company is still playing well with
working capital

8. Asset Turnover Ratio

ATR= Sales/Total Assets
2023: 0.50
2024: 0.52
Industry average: 0.8
This shows Adani Power plants are working less effectively compared to the industry
average. This might be due to the new expansion assets, which have not yet started to
produce power but are in the process of construction.
Leverage/Solvency Ratios
9. Debt-Equity Ratio
D-E Ratio = Long-Term Debt / NETWORTH
2023: 24,978.63 / 28223.87 = 0.885
2024: 18885.62 / 39448.05 = 0.45
Industry Average: 0.6
10. Debt- Total Capital Ratio
D-TC Ratio = Long-Term Debt / (NETWORTH+Long-term Debt)
2023: 24,978.63 / 28223.87 + 24,978.63 = 0.469
2024: 18885.62 / 39448.05 + 18885.62 = 0.32
Industry Average: 0.4
Leverage Ratio Inference: Adani Power has repaid its loan heavily, which reduced the DE
ratio and raised money in other equity ways. Where they have more leverage to get a loan in
the future if needed, as their D-E and D-TC ratios are way below the industry average. This
shows the company has a large area for expansion in the future.
11. Interest Coverage Ratio (Operating Profit / Interest)
2023: 10,096.34 / 3,333.50 = 3.03
2024: 18,227.62 / 3,388.09 = 5.38
12. Debt Coverage Ratio (Operating Profit / Total Debt)
2023: 10,096.34 / 42,349.53 = 0.24
2024: 18,227.62 / 34,615.56 = 0.53
Analyzing the Interest Coverage Ratio and Debt Coverage Ratio shows Adani Power’s
position among lenders in giving future loans as there is a long-lasting profit. Since the
market heavily depends on the cost of coal, we need to take care of that also. But for now,
they have a good position among the Lenders
Profitability Ratio
13. Operational Profit Margin
OPM=EBITDA/NETSALES
2023: 20.14 %
2024: 49.86 %
Industry Average: 20 %
The cheaper coal rate made the Industry earn more profit, and due to the PPA(power purchase
agreement) with the government, it made to earn way above the industry average.
14. Gross Profit Margin
GPM=EBIT/NET SALES
2023: 33.06 %
2024: 42.79 %
Industry Average: 12%
The depreciation of new assets is also the reason for this high Gross profit margin. Adani
Power has a much higher GPM than its industry average, which shows its reason for high
profits
15. Net Profit Margin
NPM=PAT/NET SALES
2023: 27.65%
2024: 41.37%
Industry Average: 10 %
Since the tax paid last year was extra, the deferred tax was there this year, and the profit
margin has increased significantly, showing the efficient operation of the thermal power
plants under Adani Power. The repayment of loans is also why the financial expenses are
reduced drastically, leading to better profit.
16. Earnings per share
2023: 23.32
2024: 46.24
Industry Average: NA
17. Return on Equity
ROE= (Net Profit / Equity)
2023: 10,726.64 / 26,018.72 = 41.22%
2024: 20,828.79 / 39,288.09 = 53.01%
18. Return on Assets
ROA= (Net Profit / Total Assets)
2023: 10,726.64 / 85,821.27 = 12.5%
2024: 20,828.79 / 92,008.97 = 22.6%
19. Return on Total Capital employed
 ROCE= (Operating Profit / Capital Employed)
2023: 10,096.34 / (85,821.27 - 12,416.33) = 13.3%
2024: 18,227.62 / (92,008.97 - 12,416.33) = 22.1%
The ROE, ROCE, and ROA of Adani Power all depicted a marked improvement in these
parameters from FY 2023 to FY 2024. The ROE leaped from 36% in FY 2023 to 48% in FY
2024, which signifies it is now much more efficient in terms of return generation for
shareholders. The ROE stands at more than three times the industry average of 10%,
indicating superior value generated for its shareholders.

Similarly, the ROCE for Adani Power has increased from 16% in 2023 to 32% in 2024, thus
showing far better capital utilization efficiency. This is a very vital factor since ROCE
represents the returns generated on total capital, including both equity and debt. Since Adani
Power's ROCE is much above the industry standard of 9%, capital allocation is superior by
the company.

ROA increased from 12.5% in 2023 to 22.6% in 2024, which means that this company has
efficiently exploited its assets towards generating the profits. This is way above the industry
average of 5%, showing very good operational performance and efficiency while managing
the assets by the company.

Conclusion: The high ROE, ROCE, and ROA for Adani Power clearly show the high
profitability of the company, efficient usage of capital as well as the excellent management of
its assets compared to the industry.

Industry
Ratio Formula 2023 2024 Average Inference

It strengthened its position

after the Hindenburg
Current Assets / scandal, reducing
Current liabilities and increasing
1. Current Ratio Liabilities 1.15 1.66 1.2 assets.

Better inventory
2. Liquidity (Current Assets - utilization and cash
Ratio (Quick Inventories - available for short-term
Ratio) Prepaid) / CL 0.99 1.38 0.8 expenses.

(Cash + Cash Increased cash to cover

Equivalents) / short-term expenses,
3. Absolute Current slightly below industry
Liquid Ratio Liabilities 0.11 0.45 0.5 average.
 Revenue from More efficient collection
Operations / Avg. of customer payments, but
4. Debtors Trade still below industry
Turnover Ratio Receivables 3.22 4.34 10 average.

Slower payment to
suppliers; still better than
Cost of Goods industry average,
5. Creditors Sold / Avg. Trade indicating improved
Turnover Ratio Payables 10.35 8.49 8 negotiation terms.

Cost of Goods Longer inventory holding

6. Inventory Sold / Avg. period, indicating
Turnover Ratio Inventory 10.63 7.81 2 potential overstocking.

Decreased efficiency in
7. Working using working capital, but
Capital Turnover Sales / Avg. still higher than industry
Ratio Working Capital 16.12 4.76 2.5 average.

Less effective asset

8. Asset Sales / Total utilization, possibly due to
Turnover Ratio Assets 0.5 0.52 0.8 ongoing expansions.

Reduced debt level,

indicating stronger
financial health and
9. Debt-Equity Long-Term Debt / capacity for future
Ratio Net Worth 0.89 0.45 0.6 borrowing.

Increased leverage
Long-Term Debt / potential due to lower
10. Debt-Total (Net Worth + ratios than industry
Capital Ratio Long-Term Debt) 0.47 0.32 0.4 average.

Improved ability to cover

interest expenses,
11. Interest Operating Profit / indicating stronger
Coverage Ratio Interest Expense 3.03 5.38 - profitability.

Better position among

lenders with a significant
12. Debt Operating Profit / increase in operating
Coverage Ratio Total Debt 0.24 0.53 - profit relative to debt.

13. Operational EBITDA / Net

High operational
Profit Margin Sales 20.14% 49.86% 20%
efficiency driven by
 favorable coal prices and
government agreements.

Strong gross profit due to

new asset depreciation
14. Gross Profit and favorable market
Margin EBIT / Net Sales 33.06% 42.79% 12% conditions.

Significant increase in net

profitability due to
effective operations and
15. Net Profit reduced financial
Margin PAT / Net Sales 27.65% 41.37% 10% expenses.

Substantial growth in
earnings per share
16. Earnings per indicates strong
Share (EPS) - 23.32 46.24 NA performance.

High return indicating

17. Return on Net Profit / effective management of
Equity (ROE) Equity 41.22% 53.01% - equity.

Increased efficiency in
18. Return on Net Profit / Total using assets to generate
Assets (ROA) Assets 12.50% 22.60% - profit.

19. Return on Improved returns on

Total Capital capital employed,
Employed Operating Profit / indicating effective capital
(ROCE) Capital Employed 13.30% 22.10% - management.

Conclusion
As Power is the base industry and metrics for the country’s development, this sector
has eminent growth, which Adani has identified and filled the gap perfectly. The company's
growth after the western Short Sheller attack is amazing. The nation’s target on infrastructure
growth increases power demand and is parallel satisfied by the Adani Power strategy expansion
by building new plants. Even though the Renewable sector is growing, its growth didn’t hinder
the growth of the Thermal industry, which is clearly visible from the revenues and power units
sold. The company’s rigorous expansion by acquiring various plants might be a weakness too.
Since the power plants have a higher depreciation amount, it might increase the ratio of
Depreciation to Total revenue value. Besides this company's main customer, government
DISCOMs, the receivables period is greater at 70 days even though it decreased from the past
year which might create problems in interest during this period which is 30-40 percentage of
revenue other issues faced from the customer side (DISCOMs) is various litigations related to
PPA (Power purchase agreements). The next thing that I felt to highlight is the uncertainty in
the cost of coal hindering the profit as the Operational costs are mainly tied up with the cost of
coal.
The Debts in the company are prepaid to position the company’s capability of an attack
from external agencies. This move shows an inorganic way to reduce the debt where the debt
might incur again in the future.
The company can also sign PPA with Industries as their end customer, like Steel plants
or Automobile Plants, where they will buy power in bulk with a reduced payment period, which
could save the cost of paying interest. Which could increase the company’s growth and bring
greater profit.

10. JP POWER VENTURES LTD

Chairman’s message
The Chairman’s message reflects a sense of pride and optimism for the achievements
and future prospects of Jaiprakash Power Ventures. The Chairman remakes about the
challenges faced by the company, including coal and gas shortages which profoundly affected
the company operations. Then, with the too-optimistic view of leadership teams, the company
navigated those challenges.
The G-20 Summit Success under PM Modi’s leadership has been talked about briefly,
and it’s the success brought to the country to showcase our nations to the world. Its strategic
success on the economy indirectly gave a sense of moral boost to companies like Jaiprakash
Power Ventures.
He talks about past success and clear future vision for the company to have a strong
position of the Jaiprakash Power Ventures in the sector. He closed the message with a strong
belief in the organization's growth and commitment to the company's growth to deliver better
value to shareholders and give the biggest comeback in a decade. It’s a strong testament to what
can be achieved with proper vision, consistent hard work, and collaboration.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Global Economy
The global economy is healing from the impact of COVID-19 19, which made
difficulties in global supply chain management. The global growth rate, estimated at 3.1% in
2023, is projected to remain stable at around 3.1% in 2024 and 3.2% in 2025. The growth in
the United States is expected to decline, while the Europe area and other advanced economies
are projected to recover slightly. Emerging and developing markets that are mainly in Asia, are
showing growth in less than what was forecasted. China and India are projected to grow at
4.6% and 6.5%, respectively, in 2024 and 2025.
Indian Economy
India's economy showed strong growth in these uncertain global conditions.India's
economy grew by 7.3% in 2023-24, with the maximum contribution from the manufacturing
and service sectors. The government's initiatives like "Make In India," labor reforms and
digitization played an essential role in strengthening our country's growth.The power
requirement in India increased by 8.6% in FY 2023-24, due to the factors such as population
growth, urbanization, and industrialization. India's GDP is expected to reach Rs 173.82 lakh
crore in 2023-24, with a projected growth rate of 6.8% in the coming years.
Indian Power Sector
Generation
India's power generation capacity reached 442 GW by March 2024, with a significant
increase from the renewable sector. The government's various initiatives to develop the
renewable energy sector by 50 GW by 2030. Thermal power continues to provide the base load
to the country, accounting for 55.03% of total installed capacity, while renewables make up
28.31%. 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%. The share of coal-based capacities in
India’s 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 an incentive scheme announced by the Government of India for
plants achieving PLF of 85% or above.
Transmission and Distribution
Indian Transmission network was 4.86 Lakhs ckt Kms transmission as against 4.71
Lakhs ckt kms in the 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 (RW) issues for transmission lines.
Meanwhile, for mobilizing investments through the asset monetization 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
km of transmission lines, 61,591 MVA of transformation capacity, and 4,290 MW Inter-
regional Transfer Capacity have been added. It is planned to integrate 500 GW of non-fossil
fuel by the year 2030. The distribution segment is crucial for the power sector's commercial
viability, with efforts to reduce aggregate technical and commercial (AT&C) losses. These
losses decreased from 21.64% in FY 2018-19 to 15.2% in 2022-23, with a target of 12% by
2024-25. Government schemes such as the Deen Dayal Upadhyaya Gram Jyoti Yojana
(DDUGJY) and the Integrated Power Development Scheme (IPDS) contribute to this
improvement.
Financial Discussion & Analysis
The revenue from operations for the year ended 31st March 2024 aggregated to Rs.
6,762.78 crores as compared to Rs. 5,786.67 crores in the previous year, i.e., higher 20.1%.
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 a 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., 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 the Net profit of Rs. 59.02 crore during the previous year.
Key Financial Ratios
The Debt-Equity Ratio has reduced to 0.37 from 0.44 due to the repayments of loans.
The returns on Equity Ratio increased by 520 % to 6.14%, mainly due to an increase in earnings
after tax. The Trade Receivables turnover ratio is 64.21 %, which was less than 26% in the
previous year. Which showed that last year's receivables were received in this year's FY 23-24.
Net Capital turnover is 4.61%, which decreased by 61%. Net profit also increased to 10.15 %
from 1.03%, which is an 885% increase mainly due to better operations.

Cash from Operating Activities (CFO):

In Mar-23, the company generated ₹767.44 million from operating activities (CFO), while in
Mar-24, this nearly tripled to ₹1,927.20 million, indicating a significant improvement in
operational efficiency and cash generation from core business activities. This strong cash
inflow in March 24 reflects better working capital management and increased profitability.

Cash from Investing Activities (CFI):

For investing activities (CFI), the company saw a modest inflow of ₹108.89 million in Mar-
23, likely from divestments or returns on investments. However, in Mar-24, there was a
major cash outflow of ₹990.95 million, signaling substantial investments in long-term assets,
expansion, or acquisitions. This suggests a growth-focused strategy where the company is
reinvesting profits to fuel future expansion.

Cash from Financing Activities (CFF):

In financing activities (CFF), the company experienced outflows in both years, with ₹879.66
million in Mar-23 and ₹963.82 million in Mar-24, indicating consistent efforts to repay debt,
reduce liabilities, or return capital to shareholders. This ongoing reduction in financing cash
flows shows a focus on improving financial structure and reducing leverage. Despite these
investments and debt reductions, the company ended both years with negative net cash flows,
with -₹3.33 million in Mar-23 and -₹27.57 million in Mar-24, driven primarily by the large
outflows in investing and financing activities.

Net Cash Flow:

The Net Cash Flow for the company was slightly negative in Mar-23 at -₹3.33 million, which
indicates that the company almost broke even, managing its cash inflows and outflows
effectively. However, in Mar-24, the Net Cash Flow declined further to -₹27.57 million,
reflecting larger cash outflows. This negative net cash flow was primarily driven by two
factors: substantial capital investments (₹990.95 million outflow in investing activities) and
continued outflows in financing activities (₹963.82 million), despite the strong cash inflow
from operations (₹1,927.20 million).

The larger negative cash flow in Mar-24 doesn’t necessarily signal trouble, as it is a result of
strategic long-term investments and debt reduction, which may improve the company’s future
profitability and financial health. The strong cash generation from operations (CFO) mitigates
concerns over these outflows, as the company is using cash for growth and financial
restructuring, positioning itself for future expansion while reducing financial risks.

In conclusion, the company in Mar-24 shows positive operational performance with

increased cash flow from operations. Its decision to invest heavily and reduce financing
further supports a strategy focused on sustainable growth and financial health.

RATIO Analysis

Industry
Ratio Mar-23 Mar-24 Average Inference
The company’s current ratio improved but is
still below the industry average, indicating a
slightly weaker ability to meet short-term
Current Ratio 0.89 1.08 1.2 obligations.
Liquidity ratio improved but remains slightly
below the industry average, showing the
Liquidity company is slightly less liquid in terms of its
(Quick) Ratio 0.56 0.75 0.8 most immediate assets.
Both years show 0, meaning the company has
no absolute liquid assets like cash or cash
Absolute Liquid equivalents, much lower than the industry
Ratio 0 0 0.5 standard.
The company’s debtor turnover ratio is
Debtors significantly lower than the industry average,
Turnover Ratio 4.96 5.7 10 indicating slower collection of receivables.
The company is slower at paying creditors
Creditors compared to the industry average, which may
Turnover Ratio 4.48 5.5 8 affect supplier relationships.
Both years exceed the industry average,
Inventory suggesting efficient inventory management
Turnover Ratio 8.13 12.92 2 and quicker inventory turnover.
The company performs better than the
Working industry in utilizing its working capital
Capital efficiently, though there was a slight decline
Turnover Ratio 4.78 3.48 2.5 in Mar-24.
The company’s asset turnover ratio is below
Asset Turnover the industry average, indicating less efficient
Ratio 0.33 0.39 0.8 use of assets to generate sales.
 The company’s debt-to-equity ratio is better
than the industry average, reflecting a lower
Debt Equity reliance on debt and a stronger financial
Ratio 0.46 0.37 0.6 position.
The company maintains a lower debt-to-total
Debt to Total capital ratio than the industry, indicating a
Capital Ratio 0.31 0.27 0.4 lower financial risk profile.
The company’s gross margin improved
substantially in Mar-24, exceeding the
Gross Profit industry average, reflecting better cost control
Margin 19.36% 33.07% 20% and pricing strategies.
Both years outperform the industry, and the
significant jump in Mar-24 highlights superior
Operating Profit operational efficiency compared to
Margin 19.36% 33.07% 12% competitors.
A large improvement in Mar-24, exceeding
the industry average, indicating higher
Net Profit profitability after all expenses are accounted
Margin 0.96% 15.11% 10% for.
The high P/E in Mar-23 indicates
overvaluation, but Mar-24’s ratio is below the
Price to industry average, signaling a more attractive
Earnings (P/E) 68.63 10.23 20 valuation for investors.
The company’s P/BV is below the industry
average, indicating that the market values the
Price to Book company’s equity at a discount relative to its
Value (P/BV) 1.06 2.43 3 book value.
ROE improved significantly in Mar-24 but is
still slightly below the industry average,
Return on reflecting better profitability but room for
Equity (ROE) 0.53% 8.91% 10% improvement.
ROA in Mar-24 exceeded the industry
Return on average, indicating improved asset utilization
Assets (ROA) 0.32% 5.91% 5% and profitability in that year.
Return on
Capital The company’s ROCE in Mar-24 is well
Employed above the industry average, reflecting efficient
(ROCE) 7.37% 14.23% 9% use of capital and strong overall performance.
The interest coverage ratio improved
significantly in Mar-24, approaching the
Interest industry average, showing better ability to
Coverage Ratio 2 4.98 5 cover interest expenses.
The company’s debt coverage ratio exceeded
the industry average in Mar-24, indicating a
Debt Coverage strong ability to meet debt obligations with
Ratio 0.65 1.89 1.5 operating cash flow.
Liquidity
The Current Ratio improved to 1.08 in Mar-24 from 0.89 in Mar-23, although this is still
below the industry average of 1.2, showing moderate improvement in its ability to meet
short-term liabilities. The Liquidity Ratio also increased from 0.56 to 0.75, close to the
industry average of 0.8, and the Absolute Liquid Ratio remained unchanged at 0.00, which
is way below the industry average of 0.5, meaning that the company does not have highly
liquid assets like cash.

Profitability
To Profitability, the company performed much better than the industry, particularly in Mar-
24, wherein its Gross Profit Margin went up from 19.36% to 33.07% (industry average:
20%), and its Operating Profit Margin also increased significantly from 19.36% to 33.07%
(industry average: 12%). The Net Profit Margin also improved significantly from 0.96% to
15.11%, passing the industry benchmark of 10%, indicating stronger control over cost and
other operational efficiency.

Activity Ratios
Efficiency The Company did well in the Inventory Turnover Ratio, which rose from 8.13 to
12.92. Here, the value showed a much higher rate than the industry average of 2, which
means that the company has efficiently managed its inventory. The Debtors Turnover Ratio,
however, is at 5.70 in Mar-24, which lags behind the industry average of 10 with slow
receivable collection. Lastly, the Asset Turnover Ratio shows a figure of 0.39 in Mar-24,
lesser than the industry average of 0.8, indicating asset underutilization.

Leverage Ratios
The company has been sound about leverage. The Debt-to-Equity Ratio improved from
0.46 in Mar-23 to 0.37 in Mar-24, which was lower than the industry average of 0.6,
indicating less dependence on debt. Similarly, the Debt-to-Total Capital Ratio decreased
from 0.31 to 0.27 with an industry average of 0.4, showing a conservative approach
towards financing. The interest coverage ratio of the company has improved significantly
and now stands at 4.98 as of Mar-24; it is quite close to the industry average, which stands
at 5.
Hence, a fair conclusion would be that JP Power Ventures Pvt. Ltd. has promising financial
performance as the company is able to demonstrate significant improvements across various
key areas. The strength of the company's cash flow from operations increased from ₹767.44
million in Mar-23 to ₹1,927.20 million in Mar-24, which represents enhanced operation
efficiency and value creation from core activities. For this reason, bottom-line growth has
been furthered with a huge increase in both operating and net profit margins that were higher
than those posted by industry peers, which reflects strong cost management efficiency.

Despite the concerns arising from liquidity, though the current and quick ratios were
relatively low compared with averages within the industry, the company has been performing
relatively well in managing its short-term obligations. Outflows in capital expenditures had
been highly prevalent and had reflected its commitment to future growth and expansion as a
strategic focus. The debt management of the company is strong, with a lower debt-to-equity
ratio that may only be indicative of a conservative approach in financing, thereby making the
company more financially stable and less exposed to risk.

From the above results, it can clearly be seen that JP Power Ventures has improved efficiency
ratios especially in regard to working capital; managing the inventory of items. However, in
accounts receivable management, the debtors turnover ratio is low in comparison with the
industry standards.

Overall, the company, JP Power Ventures Pvt. Ltd., is poised well for further growth. It would
continue to exploit the strong profitability and efficiency of its operations with disciplined
leverage and investment. With continued focus on improving liquidity and operational
efficiency, the company can raise its competitive edge and ensure sustainable long-term
growth in the dynamic energy sector.
Conclusion
JP Power Ventures Limited (JPVL) has demonstrated strong energy resilience and
operational performance during FY2023-24, reflecting its focus on efficient power generation
from its core assets . The company has increased in revenue growth, driven by increased energy
production at its thermal power plants, an optimistic approach to meet energy demand
emphasizing the growing demand in India. The focus on improving high plant load factors
(PLF) at JPVL’s thermal plants, majorly from Bina TPP and Nigri STPP, has increased
operational efficiency and profitability. The company’s ability to increase its energy sales by
1,733.15 MU from a year ago confirms its commitment to increase production despite
challenges such as low hydropower due to hydrology, which is the main reason the company
is trying to consider.
Financially, JPVL has managed to improve its bottom line by reducing finance costs
through prudent loan repayments, further strengthening its financial stability. The company's
focus on operational excellence, combined with favorable government policies and initiatives
in the power sector, positions it well for future growth. As JPVL continues to navigate the
complexities of the Indian power sector, including regulatory changes and the transition to
renewable energy, its strategic emphasis on efficiency and sustainable growth will be key to
maintaining its competitive edge. With India’s energy demand expected to rise, JPVL's role in
contributing to the nation's energy security remains significant, and the company is well-placed
to capitalize on emerging opportunities in the sector.
11. TORRENT POWER
Chairman’s Speech
Torrent Power said they are committed to keeping and improving the legacy of their founder,
Mr. U.N. Mehta, who died 100 years ago. Torrent Power is working to become a leading global
organization known for its reliability, sustainability, and operational excellence. Below is a list
of the main themes in the statement.
Torrent Power wants to be the best energy company in India and do good things for the
environment, customers, and society. The company wants to improve three things: make more
green energy available, make its distribution better, and find new ways to make more money
in the transmission business.
Torrent Power wants to grow its renewable energy capacity to 5 GW by 2020. The company
has made big progress in this area. They got contracts for 956 MW of renewable projects and
are working on things like green hydrogen and pump storage hydro. Torrent Power is looking
into using solar and wind energy. They want to reduce their carbon footprint and help India
reach its renewable energy goals.
Along with its green energy projects, Torrent Power is also working to improve its distribution
operations. The company is committed to improving customer experience by improving
network quality and reducing losses. Torrent Power is using advanced technology like smart
grids and energy storage to make its distribution network more efficient and reliable.
Torrent Power is looking for new growth opportunities in the transmission sector. The company
is also building new transmission lines and substations to help India's power industry grow.
Torrent Power is also driven by a strong commitment to social responsibility and sustainability.
The company wants to help everyone, so they focus on health, education, art, and the
environment. The Mehta family has promised to give INR 5,000 crore to the UNM Foundation
in the next five years. This money will be used for social causes that are not covered by the
government's corporate social responsibility rules.
Torrent Power reported a 27% increase in PAT for FY24, driven by better operational
performance, reduced distribution losses, and improved performance against normative
parameters. The company's strong financial performance is a testament to its effective strategy
and execution, and provides a solid foundation for its future growth plans.
Torrent Power's strategy is aimed at sustaining growth, improving operational efficiency,
expanding its green energy footprint, and contributing to society. The company cares about
being good for the environment, making customers happy, and helping others. It does this by
doing things and investing money that will help it succeed in India's changing power industry.
Torrent Power's plan matches what the government of India wants for the power industry. They
believe in using renewable energy, using energy efficiently, and doing good things for society.
The companies initiatives and investments are also in line with the United Nations Sustainable
Development Goals, which aim to promote sustainable development and reduce poverty and
inequality around the world.
Torrent Powers strategy is a well-thought-out plan that addresses the companies key challenges
and opportunities in the Indian power sector. The company cares about being good for the
environment, making customers happy, and helping others. It does this by doing things and
investing money that will help it succeed in India's changing power industry.
Management Discussion and Analysis
The power sector is changing a lot because customers are changing and power generation
sources are changing. The demand for electricity is higher than expected because of more
factories and better transmission and distribution (T&D) systems. Rural power availability has
increased from 12.5 hours in 2015 to 21-22 hours, while urban areas now have 23.8 hours. In
FY24, peak power demand was 243.27 GW, and base demand increased by 7.6% India's
projected GDP growth rate of 7% is expected to continue.
On the generation side, the energy mix is changing rapidly, with renewable energy (RE)
growing but still not enough to meet rising demand. As more people around the world work to
stop using fossil fuels, India has to balance growing its economy with changing how it uses
energy. It's important to increase the power plants' thermal capacity. They plan on adding 93
GW by the end of the year, which is up from 5.9 GW in the last year. The efficiency of thermal
power plants increased from 64% in FY23 to 69% in FY24. But RE is still an important part
of India's energy transition, contributing 71% to total capacity additions in FY24. Solar power
grew the fastest, helped by lower costs and favorable policies. Even though there are problems
with getting land and connecting to the grid, renewable energy will grow faster to reach India's
goal of 500 gigawatts by 2030. The government has offered different incentives, like the PM-
Surya Ghar: Muft Bijli Yojana and incentives tied to how much something is made, to
encourage renewable energy and clean energy solutions like green hydrogen and battery
storage.
The Transmission & Distribution (T&D) sector is also growing, with a larger network of
transmission lines built over the years. But there are still problems, like waiting for permission
and clearing trees. Notably, the distribution segment has seen improvements, with average
AT&C losses reduced from 26% in FY15 to 15% in FY24, and a decrease in outstanding dues
of distribution companies. The government wants to make the distribution system better so it
can handle more demand.
In the future, more renewable energy sources like wind and solar power will be used, but coal
will still be important for making enough electricity for everyone. RE is expected to meet more
demand, but there are still problems with the power grid and making sure it stays on. Pumped
Storage Hydropower (PSH) and Battery Energy Storage Systems (BESS) will be important as
technology improves and becomes cheaper. Green hydrogen is also expected to be a key part
of India's clean energy transition. The government is helping to develop this sector through
initiatives like the SIGHT scheme. The distribution system will get better because the
government is making changes and updating the infrastructure under the Revamped
Distribution Sector Scheme (RDSS).
Torrent Power operates 400 kV and 220 kV double circuit transmission lines through its
subsidiary Torrent Power Grid Limited (TPGL) The company is working on big transmission
projects like the Khavda Project in Gujarat. It will lay 60 kilometers of 400 kV D/C line and
upgrade the bays. It will be ready to use by January 2026. The Solapur Project in Maharashtra
will build 44 kilometers of 400 kV D/C line using BOOT technology. It will be finished by
March 2026.
In FY24, Torrent Power's energy production got better. The AMGEN plant, which uses coal,
had a PLF of 91%, up from 88% because more people wanted it and there was enough coal in
the country. Gas plants like SUGEN, UNOSUGEN, and DGEN were always available, even
when demand changed. The company increased its solar capacity to 315 MWp, with a slight
decrease in PLF of 18.42%. Wind capacity rose to 921 MWp, with a PLF improvement of
26.71%.
In licensed distribution, sales increased by 2.16% in Ahmedabad & Gandhinagar and
distribution losses decreased by 4.16% in Surat. Dadra & Nagar Haveli and Daman & Diu
(DNH & DDD) saw sales increase by 5.86%, but distribution losses were 1.58%. Dahej saw
sales increase by 11.76%, but distribution losses were 0.3% The company has a regulatory gap
of 3,095 Crore.
In franchised distribution, Bhiwandi's sales increased by 0.85% with a distribution loss of
9.64%. Agra's sales increased by 3.77% with a distribution loss of 9.16%. Shil-Mumbra-Kalwa
(SMK) saw a 13.33% rise in sales.
In FY24, the company's financial performance showed a significant increase in revenue, up 6%
from 25,694 crore in FY23 to 27,183 crore. This growth was offset by a decrease in profit
before tax of 16% to 2,562 crore from 3,051 crore the previous year. This decline was mostly
due to a high number of one-time gains from merchant sales, including the sale of RLNG. Even
though the profit decreased, key operational parameters improved. The thermal power plant
load factors (PLF) increased due to higher demand, and the renewable energy sector saw higher
profits because of favorable wind conditions. The licensed distribution business also performed
better, showing increased return on equity (RoE) because of new capital expenditures and
improved operational metrics.
The company's expenses went up by 15% to 943 crore because they borrowed more money and
paid higher interest rates. Liquidity improved over the year, with the closing balance rising to
1,347 crore from 1,143 crore at the start of the year. This made more money available because
we made a lot of money from our business, about 3,358 crore. The company spent 3,464 crore
on capital expenditure and 771 crore on dividend distribution, resulting in a higher closing
liquidity balance. Capital expenditures were focused on improving the network in distribution
areas and expanding renewable energy operations.
The company's long-term debt went up by 791 crore and reached 11,312 crore at the end of the
year. The increase was due to new debt of 3,300 crore and debt repayments of 2,509 crore. The
debt repayment schedule is spread out over several years, with big payments planned for FY25-
29 and smaller amounts due in the following decades.
The company has strong credit ratings from CRISIL and India Ratings, with long-term ratings
of AA+ (Stable) and A1+ (Stable) from both agencies. The debtors turnover ratio improved
slightly, and the interest coverage ratio decreased. The current ratio went up a little bit, and the
ratio of debt to equity went up over time. But net debt to EBITDA increased and net profit
margin declined. Return on net worth also dropped a lot.
The company is worried about using too much gas to make electricity because the price of
LNG changes a lot and renewable energy is becoming more expensive. We use strategies to
hedge against fluctuations in LNG prices and foreign exchange risks, and we try to reduce the
costs of fuel contracts. Also, the companies coal-based power plants must meet revised
environmental standards and meet flexible operation requirements set by the Central Electricity
Authority.
The distribution business has a lot of unrecovered and disputed regulatory claims. But the
government wants to make distribution more private and competitive, which could lead to new
opportunities. The company plans to expand its capacity to 5 GWp and explore new ways to
make green energy, such as pumped hydro storage, green hydrogen, and green ammonia.
In transmission, the company plans to participate in competitive bidding for projects because
it has strengths in project financing and execution. Audits by Ernst & Young (EY) LLP and
oversight by the Audit Committee are part of the internal control systems.
The company is facing many risks and challenges, but its focus on expanding renewable energy,
improving operational efficiency, and maintaining financial stability positions it well for future
growth.
Financial Analysis of Torrent Power :-
Current Ratio
• 2023: Current Ratio = Current Liabilities/Current Assets = 5,983.51 / 9,486.30 = 0.63
• 2024: Current Ratio = 7,033.24 / 10,193.17 = 0.69
Quick Ratio
• 2023: Quick Ratio = Current Assets−Inventories/Current Liabilities
= (5,983.51 - 645.71) / 9,486.30 = 5,337.80 / 9,486.30 = 0.56
• 2024: Quick Ratio = (7,033.24 - 645.56) / 10,193.17 = 6,387.68 / 10,193.17 = 0.63
Absolute Liquid Ratio
• 2023: Absolute Liquid Ratio = Cash and Cash Equivalents/ Current Liabilities
= (138.50 + 524.29) / 9,486.30 = 662.79 / 9,486.30 = 0.07
• 2024: Absolute Liquid Ratio = (267.47 + 282.19) / 10,193.17 = 549.66 / 10,193.17 =
0.05
Debtors Turnover Ratio
• 2023: Debtors Turnover Ratio = Revenue from Operations/ Trade Receivables
= 18,836.22 / 1,518.04 = 12.41
• 2024: Debtors Turnover Ratio = 19,996.96 / 1,565.93 = 12.77
Creditors Turnover Ratio
• 2023: Creditors Turnover Ratio = Total Expenses/ Trade Payables
 = 16,339.57 / 302.14 = 54.10
• 2024: Creditors Turnover Ratio = 18,200.29 / 306.21 = 59.43
Inventory Turnover Ratio
• 2023: Inventory Turnover Ratio = Revenue from Operations / Inventories
= 18,836.22 / 645.71 = 29.16
• 2024: Inventory Turnover Ratio = 19,996.96 / 645.56 = 30.97
Working Capital Turnover Ratio
• 2023: Working Capital Turnover Ratio = Revenue from Operations / Current Assets -
Current Liabilities
= 18,836.22 / (5,983.51 - 9,486.30) = 18,836.22 / (-
3,502.79) = -5.38 (negative working capital)
• 2024: Working Capital Turnover Ratio = 19,996.96 / (7,033.24 - 10,193.17) =
19,996.96 / (-3,159.93) = -6.33 (negative working capital)

Asset Turnover Ratio

• 2023: Asset Turnover Ratio = Revenue from Operations / Total Assets
= 18,836.22 / 25,987.50 = 0.72
• 2024: Asset Turnover Ratio = 19,996.96 / 29,191.41 = 0.69
Debt-Equity Ratio
• 2023: Debt-Equity Ratio = Total Debt/Total Equity
= 8,349.90 / 11,019.67 = 0.76
• 2024: Debt-Equity Ratio = 9,703.96 / 12,038.50 = 0.81
Debt to Total Capital Ratio
• 2023: Debt to Total Capital Ratio = Total Debt/Total Debt+Total Equity
= 8,349.90 / (8,349.90 + 11,019.67) = 8,349.90 / 19,369.57 =
0.43
• 2024: Debt to Total Capital Ratio = 9,703.96 / (9,703.96 + 12,038.50) = 9,703.96 /
21,742.46
= 0.45
Gross Profit Margin
• 2023: Gross Profit Margin = Revenue from Operations−Cost of Goods Sold
/Revenue from Operations
 = (18,836.22 - (8,660.97 + 2,508.23 + 1,879.26)) / 18,836.22
= (18,836.22 - 13,048.46) / 18,836.22 = 0.31 or 31%
• 2024: Gross Profit Margin = (19,996.96 - (7,922.27 + 5,647.95 + 690.53)) / 19,996.96
= (19,996.96 - 14,260.75) / 19,996.96 = 0.29 or 29%
Operating Profit Margin
• 2023: Operating Profit Margin = Profit before Tax/Revenue from Operations
= 2,931.29 / 18,836.22 = 0.16 or 16%
• 2024: Operating Profit Margin = 2,446.27 / 19,996.96 = 0.12 or 12%
Net Profit Margin
• 2023: Net Profit Margin = Profit for the Year/Revenue from Operations
= 2,103.72 / 18,836.22 = 0.11 or 11%
• 2024: Net Profit Margin = 1,798.03 / 19,996.96 = 0.09 or 9%
Return on Equity (ROE)
• 2023: ROE = Net Income/Shareholders’ Equity
= 2,103.72 / 11,019.67 = 0.19 or 19%
• 2024: ROE = 1,798.03 / 12,038.50 = 0.15 or 15%
Return on Assets (ROA)
• 2023: ROA = Net Income /Total Assets = 2,103.72 / 25,987.50 = 0.08 or 8%
• 2024: ROA = 1,798.03 / 29,191.41 = 0.06 or 6%
Return on Capital Employed (ROCE)
(Note: EBIT = Profit before Tax + Finance Costs)
• 2023: ROCE = EBIT/Total Assets−Current Liabilities
= (2,931.29 + 668.34) / (25,987.50 - 9,486.30) = 3,599.63 / 16,501.20
= 0.22 or 22%
• 2024: ROCE = (2,446.27 + 781.43) / (29,191.41 - 10,193.17) = 3,227.70 / 18,998.24
= 0.17 or 17%
Interest Coverage Ratio
• 2023: Interest Coverage Ratio = EBIT/Finance Costs
= (2,931.29 + 668.34) / 668.34 = 3,599.63 / 668.34 =
5.39
 • 2024: Interest Coverage Ratio = (2,446.27 + 781.43) / 781.43 = 3,227.70 / 781.43 =
4.13
Debt Coverage Ratio
• 2023: Debt Coverage Ratio = Operating Income/Total Debt
= (18,836.22 - 16,339.57) / 8,349.90 = 2,496.65 / 8,349.90
= 0.30
• 2024: Debt Coverage Ratio = (19,996.96 - 18,200.29) / 9,703.96 = 1,796.67 /
9,703.96 = 0.19

Comparison of year 2023 vs 2024 data :

Ratio 2023 2024 Analysis

Liquidity Ratios
Slight improvement in the ability to meet short-term
Current Ratio 0.63 0.69
liabilities.
Quick Ratio 0.56 0.63 Better liquidity management, excluding inventories.
Decrease in the most liquid assets relative to current
Absolute Liquid Ratio 0.07 0.05
liabilities.
Efficiency Ratios
Debtors Turnover Ratio 12.41 12.77 Slightly faster collection of receivables.
Creditors Turnover Ratio 54.1 59.43 Faster payment of suppliers.
Inventory Turnover Ratio 29.16 30.97 Improved efficiency in managing inventory.
Working Capital Turnover
-5.38 -6.33 Negative working capital, indicating liquidity issues.
Ratio
Asset Turnover Ratio 0.72 0.69 Slight decrease in asset utilization efficiency.
Profitability Ratios
Slight reduction in profitability at the gross profit
Gross Profit Margin 31% 29%
level.
Operating Profit Margin 16% 12% Higher operating costs relative to revenue.
Net Profit Margin 11% 9% Reduction in overall profitability.
Return Ratios
Decrease in the ability to generate profit from
Return on Equity (ROE) 19% 15%
shareholders' equity.
Return on Assets (ROA) 8% 6% Lower efficiency in using assets to generate profit.
Return on Capital Decline in profitability relative to the capital
22% 17%
Employed (ROCE) employed.
Solvency Ratios
Debt-Equity Ratio 0.76 0.81 Higher proportion of debt relative to equity.
Debt to Total Capital
43% 45% Slight increase in leverage.
Ratio
Interest Coverage Ratio 5.39 4.13 Reduction in the ability to cover interest expenses.
Decline in the ability to cover debt from operating
Debt Coverage Ratio 0.3 0.19
income.
 Financial Ratios Comparison

Ratio 2023 2024 Industry Average

Current Ratio 0.64 0.7 1.2
Liquidity Ratio 0.25 0.26 0.8
Absolute Liquid Ratio 0.06 0.06 0.5
Debtors Turnover Ratio 13.16 11.28 10
Creditors Turnover Ratio 7.56 6.56 8
Inventory Turnover Ratio 2.91 1 2
Working Capital Turnover Ratio -1.15 -1.06 2.5
Asset Turnover Ratio 0.74 0.7 0.8
Debt Equity Ratio 0.85 0.82 0.6
Debt to Total Capital Ratio 0.46 0.45 0.4
Gross Profit Margin 15.26% 11.91% 20%
Operating Profit Margin 10.48% 8.95% 12%
Net Profit Margin 10.92% 8.80% 10%
Price to Earnings (P/E) 15.22 14.35 20
Price to Book Value (P/BV) 2.53 2.41 3
Return on Equity (ROE) 9.87% 9.68% 10%
Return on Assets (ROA) 4.69% 4.21% 5%
Return on Capital Employed (ROCE) 8.46% 7.89% 9%
Interest Coverage Ratio 4.38 3.13 5
Debt Coverage Ratio 1.02 0.88 1.5

Analysis:-
1. Liquidity and Solvency:
o Current Ratio and Liquidity Ratio: Both ratios are lower than the industry
average, showing possible liquidity problems. The company is not as good at
paying its short-term debts as the others in the industry are.
o Debt Equity Ratio and Debt to Total Capital Ratio: The company's debt is
greater than the industry average, and thus could mean a higher financial risk.
2. Efficiency:
o Debtors Turnover Ratio: The company collects money owed to it better than
most other companies in the industry.
o Inventory Turnover Ratio: There is a big drop in 2024, which suggests there
may be problems with managing inventory.
 o Asset Turnover Ratio: A little lower than the industry average, showing less
efficiency in using assets to make money.
3. Profitability:
o Gross Profit Margin, Operating Profit Margin, and Net Profit Margin: All
margins are below industry averages, implying that the company is less
profitable than its peers.
o ROE and ROA: Below industry averages, reflecting lower profitability in
generating returns for shareholders and assets.
4. Valuation:
o P/E and P/BV: Below industry averages, indicating the possibility that the
company's stock may be undervalued relative to its peers.
5. Coverage Ratios:
o Interest Coverage Ratio: Interest Coverage Ratio: Below the industry
average, which may suggest some difficulty in covering interest obligations
out of operating profits.
o Debt Coverage Ratio: Lower than the industry average, suggesting
challenges in covering debt obligations.
Conclusion
The company's financial health shows areas of concern when compared to industry averages:
Liquidity Issues: The corporation suffers from a cash flow problem and its current, liquidity,
as well as absolute liquid ratios is much lower. Cash equivalents need to be increased quickly.
Profitability Decline: There is a clear drop in profitability ratios from 2023 to 2024, with all
margins going below industry averages. This trend must be fixed to become competitive
again.
High Leverage: The company owes more money than other companies in the industry,
which raises financial risk. Finding ways to lower debt or increase equity would help.
Efficiency Concerns: Deteriorating mixed efficiency ratios with good debtor collection but
poor inventory management and asset utilization suggest where the operations can improve.
Valuation and Market Perception: The company's lower P/E and P/BV ratios mean the
market thinks it is worth less than its competitors, likely because of the financial problems
that have been found.
Recommendations
Improve Liquidity: Enhance cash flow management, possibly by negotiating better payment
terms with suppliers and customers.
Boost Profitability: Focus on cost control and operational efficiency to improve margins.
Reduce Leverage: Try to diminish debt or enhance equity to better the capital structure.
Enhance Efficiency: Optimize inventory management and better utilize assets to generate
revenue.
Communicate Value: Engage with investors to highlight strengths and improvements,
potentially improving market valuation.

Cash Flow Analysis :-

1. Cash Flow from Operating Activities (CFO)
• Year ended March 31, 2024: ₹3,413.69 crore
• Year ended March 31, 2023: ₹3,117.59 crore
The company generated more cash from their daily operations, indicating that it generates
better cash flow in 2024 compared to 2023. More significant changes are probably the
reasons why this increase occurs, such as higher profit before tax, which is even despite some
big changes like depreciation, amortization, and working capital shift. Positive cash from
operations is crucial for keeping the cash flow from the company steady and supporting
everyday needs of business.
2. Cash Flow from Investing Activities (CFI)
• Year ended March 31, 2024: ₹(3,187.06) crore (outflow)
• Year ended March 31, 2023: ₹(2,137.39) crore (outflow)
There is a significant amount of cash leaving the company in both years, but more cash left in
2024. This resulted because the company had invested more in property, plant, equipment,
and intangible assets in 2024 compared to 2023. These significant outflows can be indicative
that the company is expanding or enhancing the assets which may benefit the company in the
future. However, it is important to observe whether this investment generates adequate
returns.
3. Cash Flow from Financing Activities (CFF)
• Year ended March 31, 2024: ₹(101.05) crore (outflow)
• Year ended March 31, 2023: ₹(1,003.91) crore (outflow)
The money going out for financing has gone down a lot in 2024 compared to 2023. The lower
repayments of loans and smaller dividend payments are major reasons for this. This might
show that the company is managing its debt better and possibly changing its capital structure.
Lower financing outflows help the company keep cash, especially after spending a lot on
investments.
4. Net Increase/Decrease in Cash and Cash Equivalents
• Year ended March 31, 2024: ₹125.58 crore (increase)
• Year ended March 31, 2023: ₹(23.71) crore (decrease)
The cash position of the company improved in 2024, where cash and cash equivalents
increase at the end of the year compared to the previous year. This is still a positive indicator
of liquidity despite significant investing outflows.
Conclusion
The company appears to be generating significant cash from its core business operations with
a marked improvement in cash generated from those operations over last year. However,
large cash outlays related to investments suggest that the company is shoveling significant
amounts of money into purchasing new assets that will limit its cash for some time. From the
perspective of financing, the company seems better at managing its debt as cash goes out less
significantly.
In FY24, the company's financial performance was mixed. Total income went up by 6.1%, but
profit before taxes and net profit went down because of rising expenses and lower margins
Even though there were difficulties, Torrent Power kept paying out dividends regularly,
showing that they care about making money for shareholders. The more money we owe
because of spending on new things and higher interest rates shows that we need to save money
and manage our debt better. Operationally, the company has improved, with better performance
in energy production and distribution. Initiatives to reduce distribution losses, improve power
plant efficiency, and expand renewable energy capacity are all good, but challenges remain,
especially in balancing rising gas costs, regulatory claims, and maintaining operational
efficiency.
Torrent Power plans to expand its renewable energy capacity, improve its transmission
infrastructure, and look into new green energy solutions in the future. As the energy market
changes, the company needs to focus on making things work better, solving problems with the
law, and getting help from the government. Overall, Torrent Power's approach to growth,
sustainability, and financial management shows its ambition to lead in the Indian energy sector
while contributing positively to environmental and social goals.
Recommendations
1. Monitor Return on Investments: Many investments are extremely expensive, which
calls for monitoring the returns these investments give back to further explain large
spending.
2. Leverage Operational Efficiency: With more cash being generated from operations,
this should be sustained by potentially enhancing the working capital management
and how efficiently it operates.
3. Optimize Capital Structure: It is good that the company is spending less on
financing, but it should keep checking its debt levels and look for chances to refinance
at better terms if possible.
4. Consider Dividend Strategy: Dividend cut back saves cash, but the company should
also consider what shareholders will expect if the profits continue rising.
12. Suzlon Energy
Chairman’s Speech
The Suzlon Group, which is a leader in renewable energy, has been committed to combating
climate change since its founder, Mr. Tulsi Tanti, died. Suzlon has always been committed to
the Sustainable Development Goals (SDG) through its renewable energy projects and the
Suzlon Foundation. In FY24, Suzlon became the first Indian company with 20 GW of global
wind installations, secured its biggest order book ever, and made a successful financial
turnaround despite changing market dynamics. This allowed the company to improve on all
business parameters and keep its position as India's leading wind energy operator.
Suzlon is aligned with major climate initiatives, such as the COP28 pledge to triple renewable
energy capacity by 2030 and the Global Renewables Alliance’s goal to decarbonize 90% of the
power sector by 2050. The number of wind farms around the world is currently 1 TW, but they
want to increase it to 3 TW in the next seven years. But reaching these targets requires more
than just commitments. It also requires ambitious measures and supportive policies to
overcome challenges like supply chain constraints. Suzlon suggests working together on a
global supply chain plan that uses local strengths while protecting local interests.
Suzlon has the potential to become the leader in renewable energy in India, which is ranked
fourth globally for both making and using wind energy. India's wind energy is one of the
cheapest in the world, and it has the potential to become a global hub for renewable energy
production. In FY24, India's wind power increased by 43%, adding 3.3 GW to its renewable
energy mix. Suzlon grew its wind capacity by 78% and wants to help India reach its ambitious
goal of 500 GW of renewable energy capacity by 2030.
Suzlon continues to innovate with its S144 turbines, India’s tallest wind turbine with a 160m
hub height and a SB 70.5 carbon fibre blade. These turbines are designed to produce more
energy while reducing the Levelised Cost of Energy (LCoE) Suzlon is using artificial
intelligence and machine learning to keep things running smoothly, manage parks, and predict
how much energy people need. The market is moving towards projects that use renewable
energy all the time, rather than just when it's convenient for them.
Suzlon recognizes its role in this energy transition. The company uses government help and
encourages more people to use renewable energy. Suzlon is a key player in India’s Net Zero
journey and a key contributor to the global renewable energy landscape. As it continues to meet
the growing demand for end-to-end renewable energy solutions, Suzlon is committed to
advancing digitization and digitalization efforts to meet rising industry demands. In FY24,
Suzlon did well financially. They contributed 32% to India's wind energy market and remained
the biggest provider of renewable energy solutions in the country. Suzlon has been in business
for almost 30 years and has a team that is focused on its goal. They can lead the global energy
transition and make sure everyone has a better future and lives that are sustainable.
Management Discussion and Analysis
In 2023, the global renewable energy market grew significantly, even though there were many
challenges, such as geopolitical tensions and volatile commodity prices. New installations
reached 510 GW, a 50% increase from the previous year. This milestone included the addition
of 105.8 GW of onshore wind and 10.8 GW of offshore wind capacity. At COP28, nearly 200
governments agreed to triple renewable energy capacity by 2030. The global renewable energy
industry showed resilience, with wind energy leading the charge.
Globally, people are cautiously optimistic about the economy. The world economy is expected
to stabilize with a growth rate of 2.6% in 2024 and increase to 2.7% by 2026. Inflation is
expected to be 3.5% in 2024 and 2.8% in 2026. Central banks are likely to raise interest rates
for a long time to deal with inflationary pressures. Politicians have to balance making sure the
economy stays healthy and investing in things like green technology, food security, and getting
rid of debt. Oil prices may rise slightly because of geopolitical tensions, but natural gas prices
have stayed volatile and core inflation is being driven by the services sector. Global trade is
improving, but it still faces risks like low demand, conflicts in different countries, and problems
with shipping.
The wind energy industry is going to grow faster. It'll have 3 trillion watts of power by 2030.
To reach this goal, we need to increase the number of wind farms installed each year by more
than three times from the current level of around 117 GW to at least 320 GW per year. The
outlook for 2024 suggests an increase of 130 GW in new wind capacity, with a further 791 GW
projected over the next five years at a compound annual growth rate (CAGR) of 10% China,
the USA, Brazil, Germany, and India account for 79% of new wind capacity in 2023. APAC
and Europe were the biggest contributors in each region.
India, a major player in the global wind market, has 45 GW of installed onshore wind capacity
as of January 2024. In 2023, India added 2.8 GW of new onshore wind capacity, which was a
56% increase from the previous year and the highest annual installation since 2017. Industrial
activity, service industries, and investments in infrastructure helped the economy grow.
However, agricultural production decreased because of changes in the monsoon. India’s
inflation rates have remained within the Reserve Bank of India’s target range of 2% to 6%,
which has contributed to a stable growth environment.
India is committed to renewable energy, such as the "Aatmanirbhar Bharat" campaign, the goal
of achieving net zero emissions by 2070, and the goal of 500 GW of non-fossil fuel capacity
by 2030. The government is expected to boost the sector with targeted wind tenders, inter-state
transmission system charge waivers, and a dedicated renewable purchase obligation (RPO) for
wind energy. The outlook for India’s wind energy sector remains positive, with plans for 13
GW of new wind projects in the pipeline. The country’s transition to hybrid renewable energy
projects combining wind and solar, as well as the development of Round-the-clock (RTC) and
Fixed and Dispatchable Renewable Energy (FDRE) tenders, are expected to further strengthen
wind energy’s role in India’s energy transition.
Gujarat led India in new wind capacity additions in FY24 with 1,744 MW, followed by
Karnataka (725 MW), Tamil Nadu (586 MW), and Maharashtra (195 MW) Gujarat has the
highest total installed wind capacity in India at 11.72 GW, followed by Tamil Nadu, Karnataka,
Maharashtra, Rajasthan, Andhra Pradesh, and Madhya Pradesh. Even though coal is still a big
source of energy, it's not as much as before. Renewable energy now makes up 32% of India's
energy, up from 30% last year. This change shows that India wants to use more renewable
energy. Wind energy is very important for the country's future development.
Suzlon, a company that makes wind energy, is doing well because there is more competition,
cheaper prices, and more people using solar power. The company focuses on making new
products and improving its technology. Suzlon's focus on innovation and efficiency is central
to its strategy to deliver value to customers and keep a competitive edge.
Suzlon's current product lineup includes advanced wind turbine models that improve energy
yield, such as the S120-140, S133-140, and S144-140. The company wants to grow in the future
by giving good service, using less energy, optimizing costs, beating the competition, and
getting more customers.
Suzlon is very important in India's move to renewable energy. They have around 32% of all
wind power installations. They don't have any debt and have a lot of money left over. They also
have a lot of orders, which means they can see how much money they make. The company
guarantees 96% machine availability.
Suzlon actively manages a number of risks to protect its operations and financial health,
including technology risk, supply chain risk, and financial risk. The company has adequate
working capital facilities and a strong financial position, which allows it to continue operations
and invest in future growth opportunities.
In fiscal year 24, Suzlon earned 6,497 Crore, which is 9.25% more than in fiscal year 23. Even
though operational costs have gone up, the company has managed to make a positive profit
before exceptional items and taxes. This shows how effective its cost control measures are.
Suzlon's total borrowings have reduced significantly, and it continues to improve its financial
position through strategic funding and cash flow management.
The company is very involved in helping the community around its wind farms. The Suzlon
Foundation helps communities by helping over 40 million people in 8 states and 1 union
territory in India. The foundation supports village development committees, self-help groups,
and other grassroots institutions through the Engage-Empower-Sustain model.
Financial Analysis of Suzlon Energy :-
1. Current Ratio:
Formula:
Current Ratio = Current Assets / Current Liabilities
• 2024: 2,949.86 / 2,757.96 = 1.07
• 2023: 2,036.49 / 2,465.93 = 0.83
2. Liquidity Ratio (Quick Ratio):
Formula:
Quick Ratio = (Current Assets − Inventories) / Current Liabilities
• 2024: (2,949.86 − 1,188.45) / 2,757.96 = 1,761.41 / 2,757.96 = 0.64
• 2023: (2,036.49 − 760.42) / 2,465.93 = 1,276.07 / 2,465.93 = 0.52
3. Absolute Liquid Ratio:
Formula:
Absolute Liquid Ratio = (Cash and Cash Equivalents + Bank Balances other than Cash and
Cash Equivalents) / Current Liabilities
 • 2024: (85.86 + 177.27) / 2,757.96 = 263.13 / 2,757.96 = 0.10
• 2023: (290.63 + 386.66) / 2,465.93 = 677.29 / 2,465.93 = 0.27
4. Debtors Turnover Ratio:
Formula:
Debtors Turnover Ratio = Revenue from Operations / Trade Receivables
• 2024: 3,799.18 / 1,115.63 = 3.41
• 2023: 3,538.14 / 546.32 = 6.48
5. Creditors Turnover Ratio:
Formula:
Creditors Turnover Ratio = Total Expenses / Trade Payables
• 2024: 3,984.84 / 1,910.55 = 2.09
• 2023: 4,161.98 / 1,059.39 = 3.93
6. Inventory Turnover Ratio:
Formula:
Inventory Turnover Ratio = Revenue from Operations / Inventories
• 2024: 3,799.18 / 1,188.45 = 3.20
• 2023: 3,538.14 / 760.42 = 4.65

7. Working Capital Turnover Ratio:

Formula:
Working Capital Turnover Ratio = Revenue from Operations / (Current Assets − Current
Liabilities)
• 2024: 3,799.18 / (2,949.86 − 2,757.96) = 3,799.18 / 191.90 = 19.79
• 2023: 3,538.14 / (2,036.49 − 2,465.93) = 3,538.14 / -429.44 = -8.24
8. Asset Turnover Ratio:
Formula:
Asset Turnover Ratio = Revenue from Operations / Total Assets
• 2024: 3,799.18 / 7,164.66 = 0.53
• 2023: 3,538.14 / 6,047.99 = 0.58
9. Debt-Equity Ratio:
Formula:
Debt-Equity Ratio = Total Debt / Total Equity
• 2024: 3,557.81 / 3,606.85 = 0.99
 • 2023: 4,628.60 / 1,419.39 = 3.2
10. Debt to Total Capital Ratio:
Formula:
Debt to Total Capital Ratio = Total Debt / (Total Debt + Total Equity)
• 2024: 3,557.81 / (3,557.81 + 3,606.85) = 3,557.81 / 7,164.66 = 49.67%
• 2023: 4,628.60 / (4,628.60 + 1,419.39) = 4,628.60 / 6,047.99 = 76.53%
11. Gross Profit Margin:
Formula:
Gross Profit Margin = (Revenue from Operations − Cost of Goods Sold) / Revenue from
Operations
• 2024: (3,799.18 − 2,853.13) / 3,799.18 = 946.05 / 3,799.18 = 24.90%
• 2023: (3,538.14 − 2,662.97) / 3,538.14 = 875.17 / 3,538.14 = 24.74%
12. Operating Profit Margin:
Formula:
Operating Profit Margin = Profit Before Tax / Revenue from Operations
• 2024: 93.43 / 3,799.18 = 2.46%
• 2023: 2,162.76 / 3,538.14 = 61.13%

13. Net Profit Margin:

Formula:
Net Profit Margin = Profit for the Year / Revenue from Operations
• 2024: 93.43 / 3,799.18 = 2.46%
• 2023: 2,162.76 / 3,538.14 = 61.13%
14. Price to Equity Ratio:
• 2024: 35.6
• 2023: 11.58
15. Price to Book Value Ratio:
• 2024: 4.53
• 2023: 3.11
16. Return on Equity (ROE):
Formula:
ROE = Net Income / Shareholders’ Equity
 • 2024: 93.43 / 3,606.85 = 2.59%
• 2023: 2,162.76 / 1,419.39 = 152.37%
17. Return on Assets (ROA):
Formula:
ROA = Net Income / Total Assets
• 2024: 93.43 / 7,164.66 = 1.30%
• 2023: 2,162.76 / 6,047.99 = 35.76%
18. Return on Capital Employed (ROCE):
Formula:
ROCE = EBIT / (Total Assets − Current Liabilities)
• 2024: 119.57 / (7,164.66 − 2,757.96) = 119.57 / 4,406.70 = 2.71%
• 2023: 190.04 / (6,047.99 − 2,465.93) = 190.04 / 3,582.06 = 5.31%
19. Interest Coverage Ratio:
Formula:
Interest Coverage Ratio = EBIT / Finance Costs
• 2024: 119.57 / 225.67 = 0.53
• 2023: 190.04 / 441.56 = 0.43
20. Debt Coverage Ratio:
Formula:
Debt Coverage Ratio = Operating Income / Total Debt
• 2024: 93.43 / 3,557.81 = 0.03
• 2023: 2,162.76 / 4,628.60 = 0.47
Comparison of year 2023 vs 2024 data :
Ratio 2024 2023 Analysis
The current ratio in 2024 improved slightly
from 2023 but remains low, indicating that the
1. Current Ratio 1.07 0.83
company has barely enough assets to cover its
short-term liabilities.
The quick ratio has improved, suggesting better
liquidity, but it's still below 1, meaning the
2. Quick Ratio 0.64 0.52
company could struggle to meet its obligations
without relying on inventory.
A steep decline in 2024, reflecting reduced cash
3. Absolute Liquid liquidity. The company has very little cash to
0.1 0.27
Ratio cover immediate liabilities, which could be
concerning.
 Significant decline in 2024, meaning the
4. Debtors Turnover company is taking longer to collect payments
3.41 6.48
Ratio from its customers, indicating possible
inefficiencies in collection practices.
A sharp drop in 2024 suggests the company is
5. Creditors delaying payments to creditors compared to
2.09 3.93
Turnover Ratio 2023, which could affect relationships with
suppliers.
Lower inventory turnover in 2024 indicates that
6. Inventory inventories are not being sold as quickly,
3.2 4.65
Turnover Ratio suggesting either reduced sales or potential
overstocking.
A huge improvement in 2024 due to a positive
7. Working Capital
19.79 -8.24 working capital, but the high ratio could indicate
Turnover Ratio
inefficiency in using working capital effectively.
Slightly lower in 2024, indicating a slight
8. Asset Turnover
0.53 0.58 decline in the company's efficiency in
Ratio
generating revenue from its assets.
A massive improvement, reflecting lower
financial risk in 2024 as the company reduced
9. Debt-Equity Ratio 0.99 3.26
its reliance on debt financing compared to
equity.
A substantial reduction in 2024 suggests a
10. Debt to Total
49.67% 76.53% healthier balance between debt and equity,
Capital Ratio
showing the company is less leveraged.
A slight improvement in 2024, showing that the
11. Gross Profit
24.90% 24.74% company maintains consistent control over
Margin
production costs relative to revenue.
A huge drop in 2024, indicating much lower
12. Operating Profit profitability from operations before tax, which
2.46% 61.13%
Margin could signal higher operational costs or lower
revenue growth.
Similar to the operating margin, the net profit
13. Net Profit
2.46% 61.13% margin drastically decreased in 2024, signaling
Margin
a substantial reduction in profitability.
A dramatic drop in 2024 due to a much lower
14. Return on Equity
2.59% 152.37% net income, significantly reducing returns for
(ROE)
equity holders compared to the previous year.
Like ROE, ROA has significantly dropped in
15. Return on Assets
1.30% 35.76% 2024, showing less efficient use of assets in
(ROA)
generating profit.
ROCE has declined, showing that the
16. Return on Capital
2.71% 5.31% company’s profitability and efficiency in using
Employed (ROCE)
capital employed have weakened.
A slight improvement in 2024, but still below 1,
17. Interest Coverage
0.53 0.43 meaning the company has less than adequate
Ratio
earnings to cover its interest obligations.
18. Debt Coverage The debt coverage ratio plummeted in 2024,
0.03 0.47
Ratio signaling that the company has significantly
 reduced its capacity to cover debt with its
operating income.

Financial Ratios Comparison

Ratio 2023 2024 Industry Average

Current Ratio 1.07 0.83 1.2
Liquidity Ratio 0.64 0.52 0.8
Absolute Liquid Ratio 0.1 0.27 0.5
Debtors Turnover Ratio 3.41 6.48 10
Creditors Turnover Ratio 2.09 3.93 8
Inventory Turnover Ratio 3.2 4.65 2
Working Capital Turnover Ratio 19.79 -8.22 2.5
Asset Turnover Ratio 0.53 0.58 0.8
Debt Equity Ratio 0.99 3.26 0.6
Debt to Total Capital Ratio 49.67% 76.53% 0.4
Gross Profit Margin 24.90% 24.74% 20%
Operating Profit Margin 2.46% 61.13% 12%
Net Profit Margin 2.46% 61.13% 10%
Price to Earnings (P/E) 11.58 35.6 20
Price to Book Value (P/BV) 3.11 4.53 3
Return on Equity (ROE) 2.59% 152.37% 10%
Return on Assets (ROA) 1.30% 35.76% 5%
Return on Capital Employed (ROCE) 2.71% 5.31% 9%
Interest Coverage Ratio 0.53 0.43 5
Debt Coverage Ratio 0.03 0.47 1.5

Analysis of Financial Ratios

1. Liquidity Ratios
• Current Ratio: Current ratio declined from 1.07 in 2023 to 0.83 in 2024 that is lower
than the industry average of 1.2 meaning the company has lower capacity to cover
short term debts with current assets, may be a sign of its financial problems.
• Liquidity (Quick) Ratio: This ratio decreased to 0.52 from 0.64, though the industry
average was 0.8. This implies that the firm might find it very difficult to pay its short-
term debts without selling its inventory.
• Absolute Liquid Ratio: Improve from 0.1 to 0.27 in 2024, which still lags the
industry average by 0.5. These steps indicate that cash availability has improved;
however, it's still not sufficient to cover immediate liabilities.
2. Efficiency Ratios
• Debtors Turnover Ratio: It has increased to 6.48 in 2024 from 3.41 in 2023 but
remains below the industry average of 10. Therefore, it presents improvement in
 collection of receivables yet the company lags behind industry peers in converting it
into cash.
• Creditors Turnover Ratio: The business improved from 2.09 to 3.93; however, it
remains lower than that of the industry average, which is 8. It means that the company
takes more days to pay off its debtors than other businesses in the industry.
• Inventory Turnover Ratio: Increased from 3.2 to 4.65 in 2024, which is higher than
the industry average of 2. This shows better management of inventory, with quicker
turnover than other companies in the industry.
3. Solvency Ratios
• Debt-Equity Ratio: Went up a lot from 0.99 in 2023 to 3.26 in 2024, which is much
higher than the industry average of 0.6. The greater use of debt may mean there is
more financial risk and pressure from borrowing.
• Debt to Total Capital Ratio: Increased strongly from 49.67% to 76.53%, in
comparison to the industry average of 40%. Such indicates that debt is a huge chunk
of the firm's capital, meaning there is quite a lot of leverage in the firm.
• Interest Coverage Ratio: This ratio has decreased from 0.53 to 0.43 levels much
lower than an industry average of 5 and reflects the fact that the company is unable to
generate enough earnings to cover its interest payments, thus increasing risk of
default.
• Debt Coverage Ratio: Was a little up and improved from 0.03 to 0.47, but still lower
than the industry average of 1.5. This indicates that there has been improvement in
servicing debt, but the company is less outstanding than industry peers.
4. Profitability Ratios
• Gross Profit Margin: Declined slightly from 24.90% for 2023 to stand at 24.74% for
2024, which is more efficient than the industry average of 20%. Thus, the company
has a good margin but needs to improve operations to compete even better.
• Operating Profit Margin: This jumped significantly from 2.46% in 2023 to 61.13%
in 2024, much higher than the industry average of 12%. This is a huge improvement
on the performance of the company and may be due to cost-cutting measures or
increased revenues.
• Net Profit Margin: Similarly, net profit margin also saw a huge jump from 2.46% to
61.13%, which indeed surpassed the industry average of 10%. While this represents a
substantial increase in overall profitability, it does merit further investigation into the
source of such high profitability, for instance, as one-time gains.
• Return on Equity (ROE): Increased significantly from 2.59% to 152.37%, while the
industry average is 10%. This denotes that shareholders' money is being well
rewarded, but it might be an indication of dangerous financial policies in place.
 • Return on Assets (ROA): Went up from 1.30% to 35.76%, which is much higher
than the industry average of 5%. This shows very good use of assets, leading to strong
profits.
• Return on Capital Employed (ROCE): It has moved slightly up from 2.71% to
5.31%, but it is still below the industry level of 9%. So, this depicts that it manages to
generate some return on capital, though it has scope for much improvement.
5. Market Valuation Ratios
• Price to Earnings (P/E): This increased from 11.58 to 35.6 while the industry
average is at 20. A higher P/E means investors expect more growth, but it might as
well mean the stock is too expensive.
• Price to Book Value (P/BV): This spiked from 3.11 to 4.53, which is above the
industry average of 3. A high P/B ratio may reflect that this stock is priced more than
its book value, hence overvalued or that people are confident about future growth.
Conclusion
Mixed performance by the company has been witnessed in 2024. While profitability has
improved significantly, there are substantial risks associated with liquidity and solvency.
1. Liquidity Issues: The quick and current ratios show that short-term corporate
financial health has deteriorated. This can spark doubts over the corporates' ability to
service their short-term debt obligations.
2. Increased Leverage: Debt-equity ratio has increased manifold and the company has
shown more financial risk. It is very much dependent on debt and it clearly indicates
that the company is getting an interest coverage ratio falling. If the earnings or cash
flows decline, the company may face financial trouble.
3. Profitability Surge: The firm had an extraordinary spurt in profitability. Its net profit,
operating profit margin, and ROE had jumped way above the industry averages.
Although this is a good positive signal, it should be analyzed if this improvement
would have some chance of sustainability or is a result of spurious events.
4. Efficient Operations: The company has improved in managing its stock and making
money from its assets, which shows that it is working better.
Recommendations
1. Address Liquidity Issues: The company needs to focus on improving liquidity by
reducing reliance on short-term liabilities or improving cash flow management. This
can be done by shortening the receivable collection period and paying off high-
interest short-term debt.
2. Manage Debt Levels: Rising debt level is something to worry about. The company
needs to consider decreasing its debt by reducing its debt-to-equity ratio. It could do
this by employing the use of the profit to pay off debts or equitizing if it can.
 3. Sustain Profitability Gains: The profit increase is good, but the company needs to
retain it. The management should track how things are going and manage its cost to
sustain profit in the long term.
4. Improve Efficiency in Receivables and Payables: This can be improved by reducing
debtor and creditor turnover ratios. The faster the turnover, the better the cash flow
and more comfortable working capital will be if collection is prompt and on time.
5. Capital Structure Optimization: At the high-debt levels, the company should review
its capital and strive for a better capital balance between debt and equity capital in
order to reduce financial risk.
6. Investor Relations: With high P/E and P/B ratios, investors should have high
expectations. The company should maintain open communication with investors and
try to meet the investors' expected growth without taking too much risk.
Analysis of Cash Flow Statement (March 31, 2024)
1. Cash Flow from Operating Activities
• Profit before Tax: Profit before tax in the company is down at ₹93.43 crores in 2024
as compared to ₹2,162.76 crores in 2023, which has represented a big slide in
profitability.
• Adjustments:
o Depreciation and Amortization decreased from ₹190.04 crores to ₹119.57
crores, which reflects either lower asset bases or better management of assets.

o Finance Income and Interest Expenses have high activities, with finance
income declining by a small margin while interest expenses declined (₹165.47
crores vs. ₹408.11 crores in 2023). It is possible that borrowing levels are up
or interest management is better.
o The firm reported special items at ₹(25.14) crores for 2024, a far cry from big
losses incurred due to selling investments in the previous year 2023 at
₹2,542.08 crores.
• Operating Profit before Working Capital Changes: Operating profit before
working capital changes in 2024 is reported at ₹278.55 crores as against ₹1,576.62
crores in 2023. This clearly indicates that the money being generated by the core
operations is going down every year.
• Changes in Working Capital: Working capital change proved to be a major negative
impact on the company:
o Financial assets and other assets: Increased by ₹389.34 crores, compared to
a decrease in 2023.
o Inventories: Increased by ₹428.03 crores, compared to a decline in the
previous year.
 o Trade receivables: Increased by ₹568.68 crores, which shows slower
collections from customers or higher credit sales.
o Other liabilities: This increased by ₹512.24 crores in 2024, a positive impact
compared to a decline in 2023.
• Net Cash from Operations: Cash from operations for the year ended at ₹(595.26)
crores in 2024. The case was far from being the same as ₹(15.08) crores in 2023. This
indicates that while profitability adjustments were done, requirements in working
capitals hugely siphoned cash from operations.
2. Cash Flow from Investing Activities
• Capital Expenditures: The company spent ₹183.65 crores on property, plant, and
equipment, which is more than the ₹81.98 crores spent in 2023. This may show that
the company is investing a lot in its assets.
• Proceeds from Sale of Investments: The company generated ₹44.53 crores through
sale proceeds from parts of its subsidiaries, associates, and joint ventures, representing
a small decline from ₹64.23 crores in 2023.
• Inter-corporate Deposits: The company recovered ₹486.19 crores from inter-
corporate deposits in 2024 which enhanced cash inflows.
• Net Cash Generated from Investing Activities: The company generated a net
amount of cash ₹376.56 crores from investing activities, which is lesser than that of
₹407.67 crores in 2023. This indicates that although investing activities brought
money into the company, that wasn't adequate to cover the loss incurred in operating
cash flow.
3. Cash Flow from Financing Activities
• Not very elaborately stated in the one-page summary, but in general terms of course,
financing activities would include loanings, repaying and liabilities concerning
dividend. On observing that borrowings have declined drastically, this area has most
probably witnessed plenty of activity, but the details are inadequate.
Conclusion
The cash flow statement for 2024 reflects significant challenges for the company:
• Operating Cash Flow for the company is now negative since the company earns less
and expends much on working capital. This makes one raise a concern over the
adequacy of cash flow from the core businesses to meet the bills.
• Investing Cash Flow is positive, showing from asset sales and repayments on inter-
corporate deposits; nevertheless capital expenditures also increased.
• Overall Cash Flow: The company operates based on its investing and maybe
financing activities to ensure adequate cash.
Recommendations
1. Improve Working Capital Management:
 o The company needs to improve the management of its receivables and
inventories. High increases in both have resulted in cash leaving the company.
Better collection of money from the customers and better inventory
management will bring positive cash flow from operations back to the
company.
2. Reassess Profitability:
o Big drops in profit before tax are worrying. Management should consider what
affects profitability, and controlling costs should be improved with better
operational efficiency to bring back profit margins.
3. Capex Planning:
o While the company requires capital investments to grow, managing its capital
expenditures with respect to its operating cash flows will be essential.
Investment in projects of high returns while managing debt will be critical.
4. Debt and Interest Management:
o The company should continue to pursue lower interest costs. With a great
reduction in borrowing costs, the company will also continue saving money on
this basis.
5. Explore Financing Options:
o Negative cash from operations can be funded by the firm through external
financing or equity infusion for the support of short-term liquidity.
6. Optimize Asset Utilization:
o Thus, to ensure the long-term sustainability of the company, it must ensure
that any capital expenditures that are being provided meet returns that would
adequately justify their cost.
In conclusion, the company has problems concerning cash flow and profitability, but good
management of working capital, better operations, and smart financing will cure these
problems for the future.

Conclusion:
To sum up, Suzlon is a leader in wind energy because it invests in technology, manages risks
well, and cares about the environment. The company's focus on new ideas, helping customers,
and doing things well will help it grow and deal with the challenges of a changing market.
13. NTPC
Shri Gurdeep Singh ( Chairman & Managing Director)

He was thrilled to share our company's remarkable performance over the past year and rea
irm our dedication to building a stronger, more sustainable business. This year has been
extraordinary for us, marked by significant achievements and milestones that underscore our
growth and strategic vision. In FY24, we achieved a historic market capitalization of ₹3.49
lakh crore ($42 billion), reflecting robust investor confidence in our financial management
and long-term growth potential. This achievement is a testament to the strength of our
operational strategies and the relentless e orts of our dedicated team. Our consolidated Profit
After Tax (PAT) reached ₹21,332 crore ($2.54 billion), marking a nearly 25% increase from
FY23. This impressive growth highlights our ability to generate substantial returns and
manage our resources e ectively. Additionally, we realized over 100% of our current billing,
totaling ₹1,57,138 crore ($18.93 billion), with our average debtor days standing at just 31.
These metrics illustrate our financial strength and stability, demonstrating our e ective
management of receivables and operational e iciency. As we continue to focus on sustainable
growth, we are excited about the upcoming Initial Public Oering (IPO) of our subsidiary,
NTPC Green Energy Limited (NGEL). This move is a significant step in our commitment to
advancing clean energy solutions. Our dedication to delivering consistent returns for our
shareholders is evident in our 31st consecutive year of dividend payments. For FY24, we
have proposed a dividend of ₹7.75 per equity share, pending shareholder approval,
representing nearly 42% of our profit. This consistent dividend payout underscores our
commitment to rewarding our investors while maintaining a strong balance sheet. This year
has also seen pivotal regulatory developments, including the Central Electricity Regulatory
Commission’s new Tari Regulations for 2024-29. These regulations are poised to support our
growth trajectory and address the country’s rising power demands. NTPC’s focus remains on
providing reliable and a ordable power while investing in advanced technologies to meet the
nation’s energy needs. Looking ahead, India’s power demand is projected to grow by 6-7%
annually over the next decade. This anticipated growth presents ample opportunities for
NTPC to expand its portfolio with a balanced fuel mix. We are strategically increasing our
coal-based capacity and making significant investments in renewable energy. Our ambitious
target is to achieve 60 GW of renewable capacity by 2032. Currently, we have 11 GW of
renewable energy projects under construction and over 20 GW in various stages of tendering.
These orts reflect our commitment to a diverse and sustainable energy mix. Safety
remains a top priority for us. We are continuously enhancing our safety measures and
investing in state-of-the-art technology to maintain a secure working environment. Our coal
production has seen a remarkable 50% increase in FY24, and we are dedicated to improving
our self-su iciency in coal production, which is crucial for meeting our energy production
targets. Our commitment to clean energy is also evident in our green hydrogen and carbon
capture initiatives. We are investing in nuclear power and expanding our international
projects, underscoring our dedication to reducing carbon emissions and exploring innovative
energy solutions. This year, we achieved a major milestone by commissioning our first
overseas power station in Bangladesh and securing a position on Forbes’ Global 2000 List,
reflecting our growing global presence and influence. Our Research and Development (R&D)
team has made groundbreaking advancements, including the development of a waste-to-
charcoal plant and successful trials of hydrogen buses. We have increased our R&D
expenditure by 70% to support these innovations, demonstrating our commitment to
technological advancement and sustainability. Investing in our people is crucial to our
success. We have implemented new career development programs and technological tools to
keep our workforce at the forefront of the industry. Our e orts have been recognized with
multiple awards, including the ATD BEST Awards 2024 and certification as a “Top Employer
2024.” These accolades highlight our commitment to fostering a supportive and growth-
oriented work environment. Our commitment to social impact remains unwavering. Through
our Corporate Social Responsibility (CSR) initiatives, we focus on health, education, sports,
skill development, and women empowerment. Our e orts have positively impacted over 1.6
million people, reflecting our dedication to making a meaningful di erence in communities.
As we look to the future, NTPC is well-positioned for significant growth in India’s evolving
energy landscape. We appreciate the support from the Government of India, our partners, and
stakeholders. Thank you for your continued trust and confidence.
NTPC is dedicated to exceeding expectations and fostering a sustainable energy
future. Our commitment to innovation, sustainability, and community development will
continue to drive our success and contribute to a brighter future for all.

MANAGEMENT DISCUSSION & ANALYSIS

The company’s report for FY 2023-24 reveals a range of strategic and operational
developments, underscoring its commitment to social responsibility, procurement policies,
and community engagement. The company has made notable progress in its sourcing
strategy, with the percentage of input materials sourced directly from MSMEs and small
producers increasing from 40.06% in FY 2022-23 to 51.64% in FY 2023-24. This substantial
rise reflects a deliberate e ort to bolster support for smaller businesses and potentially
stimulate local economies. However, sourcing from within the district and neighboring
districts remains minimal, at less than 1% in both years. This indicates that while the
company is enhancing its support for MSMEs, its reliance on broader supply chains continues
to dominate, suggesting a preference for a diversified supplier base over local sourcing. The
distribution of wages across various locations shows a generally stable approach with minor
adjustments.
In rural areas, the percentage of wages paid slightly decreased from 45.50% in FY
2022-23 to 45.27% in FY 2023-24, indicating a consistent allocation of resources to these
regions. Conversely, semi-urban areas experienced a small reduction from 5.55% to 5.07%,
reflecting a slight decrease in wage costs. Urban areas saw a modest increase in wage
allocation from 41.47% to 42.41%, which could be attributed to expanded operations or
increased employment in these regions. Metropolitan areas, however, experienced a minor
decrease from 7.49% to 7.25%, suggesting a slight shift away from metropolitan wage
allocation. In the realm of social impact, no Social Impact Assessments (SIA) were conducted
during FY 2023-24. This absence is attributed to land acquisition managed by the District
administration, indicating that there were no new significant projects necessitating an SIA or
that existing land acquisition processes were adequately handled externally. On the corporate
social responsibility front, the company has made targeted investments in aspirational
districts, with notable expenditures in districts such as Sonbhadra, Singrauli, and Korba. This
approach highlights a strategic focus on supporting development in underprivileged areas and
aligns with broader objectives of regional development.
 The company adheres to the Government of India’s Public Procurement Policy, which
mandates procurement from MSMEs, including specific targets for SC/ST-owned and
women-owned enterprises. The revised target for MSME procurement is set at 40%,
exceeding the previous mandate of 25%. For FY 2023-24, the company achieved 51.64%
procurement from MSMEs, showcasing strong performance in this area. However,
procurement from SC/ST-owned MSMEs and women entrepreneurs fell short of targets, with
only 0.17% and 0.34% respectively, highlighting an area for improvement. While the overall
MSME procurement is impressive, there is a clear need to enhance procurement practices
related to marginalized and women-owned businesses to meet the government’s specified
targets. Regarding intellectual property, the company is still in the process of consolidating
data related to the benefits derived from traditional knowledge.
This ongoing e ort indicates that detailed reporting and utilization of intellectual
property are under development. Additionally, there were no adverse orders or disputes
related to intellectual property involving traditional knowledge, which suggests that the
company’s practices in this area are currently compliant and free from legal conflicts. The
company’s CSR initiatives have been impactful, with a significant focus on vulnerable and
marginalized groups. Beneficiary distribution across various CSR projects reveals a
commitment to improving lives in disadvantaged communities. For instance, 62.96% of
beneficiaries from health and rural development projects, 90.22% from sanitation, and
97.77% from vocational training and women empowerment programs are from vulnerable
groups. The education sector achieved a notable 100% of beneficiaries from marginalized
backgrounds, reflecting a strong emphasis on supporting education in underprivileged areas.
Overall, 64.12% of beneficiaries from arts, culture, sports, and other areas are also from
vulnerable groups, indicating a broad and inclusive approach to CSR.
The company maintains an e ective Customer Relationship Management (CRM)
system designed to gather and address consumer feedback. This structured system involves
regular interactions with customers, enabling the company to manage complaints and
experiences e iciently. The CRM system reflects the company’s commitment to responsible
consumer engagement and responsiveness.
In summary, the company’s e orts demonstrate a strong focus on supporting MSMEs,
engaging in community development, and improving consumer relations. While there are
notable successes in sourcing and procurement, particularly with MSMEs, there are identified
areas for growth, such as enhancing procurement from SC/ST and women-owned enterprises.
The company’s strategic investments in aspirational districts, effective CSR programs,
and robust CRM system underline its commitment to social responsibility and stakeholder
engagement. The ongoing consolidation of data related to intellectual property and traditional
knowledge further reflects the company's dedication to maintaining compliance and
addressing emerging challenges.
Cash Flow Analysis:
1. Cash Flow from Operating Activities (₹34,830.91 crore)
• Interpretation: NTPC generated substantial cash from its core business
operations, although the cash flow from operating activities declined
compared to the previous year (₹42,351.34 crore).
• Reason for Decline: The decrease was largely due to changes in working
capital adjustments (₹7,594.15 crore), which could indicate higher
receivables, inventory buildup, or increased liabilities.
• Positives: Despite the decline, the company continues to generate strong cash
from its operations, which is a positive sign of its ability to cover operating
costs, pay dividends, and service debt.
2. Cash Flow from Investing Activities (₹15,118.16 crore)
• Interpretation: NTPC used a large amount of cash for investments, primarily
in property, plant, and equipment(₹17,444.27 crore). This shows that the
company invests heavily in capital projects, likely to expand its power
generation capacity or improve existing assets.
• Comparison: The spending on capital expenditure was slightly higher than
the previous year (₹17,320.53 crore), indicating sustained investment for
growth.
• Strategic Implications: Investing in fixed assets reflects NTPC’s commitment
to expanding and maintaining its infrastructure, but it also represents a
significant outflow of cash, which may limit short-term liquidity. However, if
these investments result in future revenue growth, it can be a positive for long-
term profitability.
3. Cash Flow from Financing Activities (₹19,518.72 crore)
• Interpretation: The company had significant cash outflows for financing
activities, which included servicing debt and paying dividends. However,
there were cash inflows from new borrowings (₹16,334.16 crore from non-
current borrowings and ₹3,907.17 crore from current borrowings).
• Net Outflow: Despite borrowing, the company still faced a net outflow from
financing activities, mainly due to debt repayments and dividend payments.

• Leverage: The increased borrowings suggest that NTPC is taking on more

debt to finance its capital expenditures, which could increase leverage. While
borrowing can help fuel growth, excessive reliance on debt can strain financial
flexibility.
Overall Interpretation:
• Strong Operational Cash Flow: NTPC is generating strong cash from its operations,
which is crucial for sustaining its capital-intensive nature. However, the decline from
last year indicates the need to monitor working capital management closely.
• Heavy Investment: The company is aggressively investing in fixed assets, signaling a
focus on long-term growth, which could boost capacity and revenues in the future.
This is a positive indicator of NTPC’s growth plans but also ties up cash in non-liquid
assets.
• Debt Management: NTPC continues to raise significant debt to fund its investments
and manage its capital structure. While this is manageable with strong operational
cash flows, keeping debt sustainable will be crucial to avoid financial strain.
Ratio Analysis:
1. Current Ratio (0.92 in FY 2023-24 vs. 0.91 in FY 2022-23)
• Interpretation: The current ratio, which measures the company's ability to meet
short-term obligations with short-term assets, is slightly below 1, indicating potential
liquidity concerns. A ratio below 1 suggests that NTPC may face challenges in
covering its current liabilities from its current assets. However, the slight
improvement from the previous year shows that the company is making marginal
progress in liquidity management.
• Action Point: NTPC may need to improve its liquidity by either increasing current
assets or reducing short-term liabilities.
2. Debt to Equity Ratio (1.24 in FY 2023-24 vs. 1.34 in FY 2022-23)
• Interpretation: This ratio indicates the proportion of debt relative to shareholders'
equity. A ratio of 1.24 means NTPC has ₹1.24 of debt for every ₹1 of equity. The
reduction from the previous year shows the company is reducing its reliance on debt,
which lowers financial risk. This is a positive indicator, as too much debt can lead to
higher interest costs and strain on cash flow.
• Action Point: Maintaining or further reducing this ratio could enhance financial
stability and investor confidence.

3. Net Profit Ratio (11.16% in FY 2023-24 vs. 10.50% in FY 2022-23)

• Interpretation: The net profit ratio has increased, which means NTPC has become
more eYicient at converting revenues into actual profit. This improvement could be
attributed to better cost control, higher revenues, or more eYicient operations. The
increase reflects positively on profitability and shows that NTPC is generating more
profit per unit of revenue compared to the previous year.
• Action Point: NTPC should continue focusing on cost-eYiciency and revenue
optimization to further boost profitability.
4. Return on Capital Employed (ROCE) (9.07% in FY 2023-24 vs. 9.39% in FY 2022-
23)
• Interpretation: ROCE measures how eYiciently NTPC is using its capital to generate
profits. The slight decline indicates that while NTPC is still generating solid returns
on its capital, the eYiciency has slightly decreased compared to the previous year.
This could be due to increased capital expenditures without a corresponding
immediate increase in profits.
• Action Point: NTPC should aim to improve capital eYiciency, perhaps by optimizing
its ongoing investments to ensure higher returns.
4. Trade Receivables Turnover Ratio (5.69 in FY 2023-24 vs. 5.34 in FY 2022-23)
• Interpretation: This ratio reflects how eYiciently NTPC collects receivables from
customers. The improvement indicates that NTPC is collecting payments faster, which
is positive for cash flow and reduces the risk of bad debts. This also points to better
credit management.
• Action Point: NTPC should continue improving or maintaining this ratio, as it
ensures steady cash inflows and reduces the working capital cycle.
5. Debt Service Coverage Ratio (DSCR) (1.56 in FY 2023-24 vs. 1.29 in FY 2022- 23)
• Interpretation: DSCR measures the company's ability to cover its debt-related
obligations with its operating income. An improvement in this ratio means NTPC is in
a stronger position to service its debt. A DSCR of 1.56 implies that the company
generates 1.56 times the cash needed to meet its debt servicing requirements, which is
a positive indicator of financial health and stability.
• Action Point: NTPC should aim to maintain or improve this ratio to ensure continued
financial resilience and avoid liquidity stress related to debt payments.
Summary of Key Insights:
• Liquidity: While the current ratio shows some improvement, it is still below 1,
indicating a need to improve liquidity.
• Leverage: The debt-to-equity ratio has decreased, signaling reduced financial risk and
a healthier balance between debt and equity financing.
• Profitability: The net profit margin and trade receivables turnover have improved,
reflecting better cost management, revenue generation, and credit collection
efficiency.
• Capital E_iciency: The slight decline in ROCE suggests that NTPC may need to
focus on more efficient use of capital.
• Debt Management: A higher DSCR demonstrates the company’s strong capacity to
service debt, which improves its overall financial health.
Ratio 23- 24- Industry Comparison (Mar 24 vs
Mar Mar Average
Industry)

Current ratio 0.91 0.92 1.2 NTPC is below the industry average,
indicating lower
short-term liquidity.

Debtors Turnover 5.34 5.69 10 NTPC’s ratio is below the

ratio
industry average, though it improved in 2024.

Creditors turnover 12.01 11.92 8 NTPC's ratio is higher than the

ratio
industry average, indicating faster payments.

Inventory 14.01 10.43 2 NTPC's ratio is close to the

Turnover Ratio
industry average, indicating good inventory
management.

Working Capital 15.07 9.87 2.5 NTPC’s working capital

Turnover ratio
utilization is better than the industry average.

Debt Equity Ratio 1.34 1.24 0.6 NTPC is lower than the
industry average, indicating slightly lower
leverage.

Debt to Total 1.34 1.24 0.4 NTPC has higher debt relative
Capital Ratio
to total capital compared to the industry.

Operating profit 10.50 11.16 12% NTPC's margin is much lower than the
margin industry average, indicating lower
profitability.

Net Profit Margin 10.50 11.16 10% NTPC's margin is very close to the industry
average, showing competitive performance.

Return on Equity 12.85 12.52 10% NTPC's ROE is slightly below the industry average,
indicating comparable
profitability.

Return on Capital 9.39 9.07 9% NTPC's return is below the

Employed
 industry average, indicating lower efficiency in
capital use.

Interest Coverage 1.29 1.56 5 NTPC is well below the

Ratio
industry average, indicating higher debt servicing
costs.

Debt Coverage Ratio 1.29 1.56 1.5 NTPC's ratio is above the
industry average, indicating better debt
serviceability.

14. TATA POWER

Praveer Sinha (CEO & MD)

Tata Power has achieved outstanding financial and operational milestones,

demonstrating a robust commitment to innovation, sustainability, and leadership in the
energy sector. This year, the company has reached new heights, both financially and in
terms of its renewable energy initiatives, underscoring its pivotal role in the ongoing
energy transition.

In the fiscal year 2024 (FY24), Tata Power reported its highest-ever Profit After Tax (PAT) of
₹4,280 crore, alongside record revenues of ₹61,542 crore. This performance reflects a
significant 26% increase in consolidated Earnings Before Interest, Tax, Depreciation, and
Amortisation (EBITDA), which reached an all-time high of ₹12,701 crore. These figures
highlight Tata Power’s robust financial health and its successful strategic focus on
operational e iciency and market expansion. Tata Power has made notable strides in
advancing its sustainable energy goals. The company's clean and green energy portfolio
is set to expand to 15 GW over the next five years, reflecting its commitment to providing
reliable, renewable energy. Key initiatives include the establishment of a 966 MW solar
wind hybrid plant to supply round-the-clock renewable power to Tata Steel, and a 1.3 GW
Firm and Dispatchable Renewable Energy (FDRE) project in collaboration with SJVN Ltd.
Additionally, Tata Power has signed a Memorandum of Understanding (MoU) with the
Government of Maharashtra to develop 2,800 MW of Pumped Hydro Storage Projects
(PSPs), which will also create over 6,000 jobs.

In the reporting year, Tata Power also commissioned India's largest solar (100 MW) and
battery (120 MWh) storage project in Chhattisgarh, solidifying its leadership in the
renewable energy sector. The company’s 4.3 GW cell and module manufacturing facility
in Tirunelveli, Tamil Nadu, has commenced module production, with the cell line
expected to be operational in the next financial year. This facility is crucial for meeting the
increasing demand for solar energy in India.

Tata Power's transmission portfolio has also seen significant growth, with recent wins
including the Jalpura Khurja Power Transmission Limited and Bikaner-III Neemrana-II
Transmission Limited projects, valued at ₹2,300 crore. Additionally, Tata Power secured
a ₹1,744 crore contract for implementing a smart metering project with the Chhattisgarh
State Power Distribution Company Limited, showcasing its expertise in high-value
projects aimed at transforming power distribution.

The Public-Private Partnership (PPP) model’s success is evident in the Odisha Discoms,
which have become profitable within just three years. This success positions Tata Power
advantageously for potential opportunities arising from the privatisation of the power
distribution sector. The global energy sector is undergoing a significant transformation,
with record-high investments in clean energy. In 2023, global spending on clean energy
surged 17% to $1.8 trillion. Despite a modest 2.2% increase in global electricity demand,
driven by slower growth in advanced economies, developing regions like China, India,
and Southeast Asia have shown robust growth in electricity demand, often with a focus
on renewable sources.

India's energy sector has demonstrated strong performance, with the peak power
demand reaching 243 GW, a 13% increase. The country is making strides toward its goal
of 500 GW of installed non-fossil fuel power capacity by 2030. In FY24, more than 70% of
new capacity additions were from renewable sources, with solar energy leading the way.
The total installed energy capacity in India reached 442 GW, with renewables constituting
approximately 33% and hydro contributing 11%. For the first time, coal’s share in India's
total installed capacity fell below 50%. The government’s new initiative, the ‘PM Surya
Ghar Muft Bijli Yojana,’ aims to further boost rooftop solar adoption, with an outlay of
₹75,000 crore for installing solar panels on 1 crore households.

India's renewable energy auctions reached a record high of approximately 41 GW, with
95% of the targeted 50 GW annual renewable energy bidding trajectory met in FY24.
Additionally, the country's nuclear capacity expanded by 1.4 GW, marking its first
increase since FY17. India's push towards sustainable mobility has led to significant
progress, with electric vehicle (EV) sales surpassing 150,000 units in 2023. EVs now
account for approximately 6.5% of total vehicle sales, up from 4.7% in 2022. This growth
is supported by favorable government policies and expanding charging infrastructure.
Tata Power’s commitment to this transition includes the installation of over 5,400 public
and captive EV charging points, contributing to the reduction of ~14,000 tonnes of CO2
emissions. The World Economic Forum has recognized Tata Power’s subsidiary, TPRMG,
for its role in advancing clean energy adoption in rural areas.

Tata Power is deeply committed to gender diversity and inclusion. The company aims to
increase its female workforce from the current 14% to 20% over the next five years.
Initiatives such as the new 4.3 GW Solar Cell and Module manufacturing facility in
Tirunelveli, Tamil Nadu, which employs up to 80% women, and all-women meter testing
labs and shift operations in Odisha, highlight this commitment. The company is also
focused on creating an equal-opportunity work environment and nurturing a diverse
talent pool through various development programs, including the Aspire Women-toring
initiative.
Tata Power’s community engagement extends beyond internal policies, with
collaborations such as the one with the Skill Council for Green Jobs to boost green energy
skills and the support of neurodiversity through partnerships with institutions like NIEPID.
Tata Power remains dedicated to its vision of leading the energy sector through
sustainable and innovative solutions. The company’s ongoing initiatives and strategic
investments are aimed at driving growth in clean energy, expanding its renewable
portfolio, and contributing to the global transition toward a greener future. With a focus
on achieving carbon net zero before 2045 and targeting inclusion in the S&P Global
Emerging Market List by 2027, Tata Power continues to set a benchmark for excellence
and sustainability in the energy industry.

MANAGEMENT DISCUSSION & ANALYSIS

In 2023, the global power sector saw significant strides toward cleaner and more resilient
energy systems, marked by a notable increase in renewable energy capacity,
advancements in energy storage, and the emergence of new technologies. However,
challenges such as extreme weather events and rising emissions highlighted ongoing
issues and the need for robust responses.

Renewable energy capacity surged dramatically in 2023, reaching approximately 510

gigawatts (GW), a 50% increase compared to previous years. This rapid expansion was
fueled by a global investment of $1.77 trillion in energy transition technologies—up 17%
from the previous year. This surge in investment and capacity underscores a global
commitment to reducing reliance on fossil fuels and increasing the share of sustainable
energy sources.

The sector faced significant challenges from extreme weather events, including severe
heatwaves in Asia, sandstorms in Beijing, and cyclones in Africa and Myanmar. These
events tested the resilience of energy systems and prompted some countries to revert to
thermal power sources to ensure stability. For example, Sweden, which had previously
shunned nuclear power, reversed its stance and invested in nuclear energy to bolster its
energy security.

Energy storage technology made impressive strides in 2023, crucial for balancing
renewable energy supply and demand. California launched a major Battery Energy
Storage Solution (BESS) project with a capacity of 750 MW/3000 MWh, while Australia
committed AU$2.3 billion to battery storage installations. The price of lithium-ion
batteries fell by 14% to about $139 per kWh, enhancing the feasibility of widespread
adoption. India also made significant progress with its energy storage targets, focusing
on pumped storage and a $94 billion program for battery storage systems.
New technologies such as electric vehicles (EVs), Distributed Energy Resources (DERs),
generative AI, and virtual power plants began to gain traction. These technologies
promise improved e iciency, flexibility, and sustainability within the power sector,
contributing to a broader push for decarbonization and energy system modernization.
Despite advancements in renewable energy, global CO2 emissions from energy rose by
1.1% to 37.4 billion tonnes in 2023. This increase, partly due to reduced hydropower
generation caused by droughts and a rise in fossil fuel use, highlights the ongoing
challenge of reducing greenhouse gas emissions. At COP28, countries committed to
tripling global renewable capacity to 11,000 GW and doubling the annual rate of energy
e iciency improvements by 2030. Various countries took actions such as phasing out
coal, increasing nuclear energy, and advancing carbon capture initiatives to meet these
climate goals.Investment in renewable energy hit $623 billion in 2023, an 8% increase
from the previous year. Renewables accounted for 35% of the total $1.77 trillion clean
energy investment, with capacity reaching approximately 3,880 GW—a 15% increase.
While Europe, the United States, and Brazil saw record high additions, China led with
significant solar PV projects, matching the entire world’s solar output from 2022.
Nonetheless, challenges like grid bottlenecks and administrative barriers hindered
capacity growth in some regions. The International Energy Agency (IEA) expects
continued growth in renewable power, particularly in solar PV and wind.
The green hydrogen sector experienced rapid growth, with investment tripling to $10.4
billion in 2023. By December, 53 countries had published hydrogen strategies, and
another 30 were developing theirs. Major plans included Vietnam's target to produce
100,000-500,000 metric tons of hydrogen by 2030, scaling up to 20 million tons by 2050.
Global subsidies for hydrogen reached $363 billion, more than quadrupling since 2021.
Nuclear power saw a resurgence due to the need for energy security and
decarbonization. At COP28, over 20 countries launched a declaration to triple nuclear
energy capacity by 2050. By December 2023, around 59 nuclear reactors totaling 61 GW
were under construction worldwide. Despite a slight decline in sector investment to
$32.7 billion, Small Modular Reactors (SMRs) gained attention, with new funding plans
from countries including Canada, the US, Japan, South Korea, and the UAE.
Investment in electrified transport surpassed renewable energy, reaching $634 billion in
2023—a 36% increase. EV sales grew by 30% to over 13.5 million units, and EV charging
infrastructure expanded by 50% to 4 million points. Europe led in deploying ultra-fast
chargers. Carbon markets also advanced, with the European Union launching the
Carbon Border Adjustment Mechanism and various countries tightening emission trading
systems or starting carbon trading exchanges. In FY24, India's economy grew by 8.2%,
leading to a 7.4% increase in energy demand to 1,626 billion units (BU) and a record peak
demand of 243 GW. The government responded by mandating a 6% blending of imported
coal and expanding thermal capacities to ensure energy security.

CASH FLOW ANALYSIS:

Cash Flow from Operating Activities (₹5,881.4G crore)
This section shows the cash inflows and outflows directly related to Tata Power's core
operations. It starts with the profit before tax and adjusts for non-cash items and changes in
working capital. Here's a deeper look at its components:
After considering these adjustments, Tata Power generated ₹5,881.4G crore from its day-to-
day operations, which is a positive sign as it shows the company is efficiently converting its
operations into cash.
Cash Flow from Investing Activities ( 9,027.11crore)
Investing activities show cash used to acquire or sell long-term assets, such as property,
plants, equipment, and investments. The primary components are:
• Purchase of property, plant, and equipment (PPE): Tata Power is likely spent on
expanding or maintaining its physical assets such as power plants, transmission
networks, or solar installations.
The company used ₹9027.11 crore in net cash for investing activities, meaning it spent more
on acquiring or maintaining assets than it earned from investment-related income.

Cash Flow from Financing Activities (₹(5,464.60) crore)

Financing activities show cash inflows and outflows related to the company’s funding
structure. It reflects how Tata Power finances its operations, either by borrowing or equity.
• Proceeds from borrowings: Tata Power likely raised funds through loans or other
financial instruments.
• Repayment of borrowings: This is the repayment of any long-term or short-term
debt that Tata Power had taken on in previous years.
• Finance costs: Cash outflows in the form of interest payments to service its debt.
• Dividend payments: Tata Power distributed dividends to its shareholders, which
represents a cash outflow in financing activities.
The net cash used in financing activities, ₹5,464.60 crore, reflects a net outflow of funds,
primarily because Tata Power repaid more debt and paid dividends than it borrowed.
4. Net Increase in Cash and Cash Equivalents (₹324.78 crore)
This is the bottom line of the cash flow statement, showing the net result of operating,
investing, and financing activities. Tata Power ended the year with an increase of ₹324.78
crore in cash and cash equivalents.
• Opening cash balance: ₹274.47 crore
• Closing cash balance: ₹599.25 crore
This indicates that despite significant investments and repayments, the company maintained a
strong cash flow from operations, contributing to a higher cash balance at the end of the year.
Summary of the Cash Flow Analysis:
• Positive operating cash flow shows that Tata Power's core business is generating
sufficient cash.
• Investing cash flow shows that Tata Power is spending on growth and asset
maintenance, which is common for capital-intensive industries like power generation.
 • Financing cash flow reflects debt repayment and dividend distribution, indicating
that the company is focused on reducing its liabilities and returning value to
shareholders.
RATIO ANALYSIS:
1. Current Ratio:
• 2024: 0.44
• 2023: 0.33
• Change: 33% increase, primarily due to lower current borrowings and
increased regulatory assets in the distribution business
2. Debt-Equity Ratio:
• 2024: 1.45
• 2023: 1.85
• Change: 22% decrease, indicating reduced leverage
3. Debt Service Coverage Ratio:
• 2024: 0.67
• 2023: 1.25
• Change: 47% decrease, due to reduced borrowings and lower dividend
income
4. Return on Equity (ROE):
• 2024: 15.12%
• 2023: 26.59%
• Change: 43% decrease, largely attributed to lower dividend income
5. Inventory Turnover:
• 2024: 48 days
• 2023: 55 days
• Change: 14% improvement
6. Trade Receivables Turnover:
• 2024: 65 days
• 2023: 54 days
• Change: 21% increase, indicating a slower receivables collection process
7. Net Profit Ratio:
• 2024: 10.99%
 • 2023: 17.34%
• Change: 37% decrease, mainly due to lower dividend income

8. Return on Capital Employed (ROCE):

• 2024: 11.98%
• 2023: 14.34%
• Change: 16% decrease

Ratios 23- 24- Industry Comparison (Mar24 vs

Mar Mar
Average Industry)

Current Ratio 0.33 0.44 1.2 Tata Power's liquidity is below the industry
average, indicating lower
short-term liquidity.

Debtors Turnover 54 65 10 Tata Power's collection period is much higher than

Ratio the industry average, indicating slower
collection.

Creditors 5.21 5.37 8 Tata Power's payables

Turnover Ratio
turnover is much slower than the
industry average

Inventory 55 48 2 Tata Power's inventory turnover is significantly

Turnover Ratio slower than the industry, indicating less efficient
inventory management.

Debt Equity 1.85 1.45 0.6 Tata Power has higher leverage compared to the
Ratio
industry average.

Net Profit Margin 17.34 10.99 10% Tata Power's net profit margin is still slightly
above the industry average but decreased in
2024.

Return on Equity 26.59 15.12 10% Tata Power’s ROE is higher than the industry
average but saw a
decline in 2024.
Return Capital 14.34 11.98 9% Tata Power’s ROCE is above the industry average
Employed but saw a decline

Interest 1.25 0.67 5 Tata Power's interest

Coverage Ratio coverage is significantly

Debt Coverage 1.25 0.67 1.5 Tata Power’s debt serviceability

Ratio
the ratio decreased and is below the industry
average.

In conclusion, a ratio analysis of Tata Power provides valuable insights into the company's
financial health, operational efficiency, and growth potential. The liquidity ratios, such as the
current ratio, indicate the company’s ability to meet its short-term obligations. Profitability
ratios, including the net profit margin and return on equity (ROE), reflect how well the
company is converting its revenues into profits and returns for shareholders. Solvency ratios
like the debt-to-equity ratio help assess the company’s long-term stability and leverage
position.
Overall, the ratio analysis shows whether Tata Power is operating efficiently and growing in a
sustainable manner. If the company has strong liquidity, profitability, and manageable debt
levels, it suggests financial robustness and long-term potential for investors. Any weaknesses
in these ratios would highlight areas where management may need to focus for improvement,
such as reducing debt or improving cost efficiencies. Thus, ratio analysis plays a crucial role
in understanding Tata Power’s performance and guiding informed investment decisions.
15. TABULAR FOR ALL COMPANIES RATIO
https://docs.google.com/spreadsheets/d/1duV1TqIqWln4eFP22rlc
BQtBWlxEGFGo/edit?usp=sharing&ouid=1124296338390052941
28&rtpof=true&sd=true
Click the above link to view a google sheet of all the company's ratios, including
Liquidity, Solvency and profitability ratios (except Activity ratio as it varies from thermal to
solar)
Table.
Jai
Indus ADANI Torre
Adani prakash
try GREEN Relianc Adani nt Hitachi JSW Suzlon Tata
RATIO TYPE S.N Ratio Cesc ltd NTPC energy power
Avera ENERG e power power powe Energy energy energy power
solution venture
ge Y r
s ltd

Curren 0.6
1 t 1.2 0.71 1.36 2.26 1.66 9 1.43 1.16 1.8 1.46 1.08 0.83 0.86
Liquity 0.6
Ratio 2 LR 0.8 0.59 1.36 2.06 1.38 3 1.23 0.89 1.46 1.3 0.75 0.52 0.79

0.0
3 ALR 0.5 0.02 0.1 1.34 0.45 5 0.23 0.039 0.68 0.5 0.005 0.27 0.15

Debt-
to-
equity 0.8
4 ratio 0.6 2.98 1.61 1.23 0.8 1 1.48 0.11 2.93 1.6 0.37 3.26 1.66

Debt-
to-
Solvenc
capital 0.4
y
5 ratio 0.4 1.01 0.62 0.57 0.45 5 0.6 0.1 0.75 0.6 0.27 0.76 0.62

Interes
t
covera
ge 4.1
6 ratio 5 0.72 0.47 1.65 8.3 3 3.29 5.76 2.02 2.62 4.98 0.43 3.05

Net -
profit 10 −4.55 26.21 36.37 11.66 3.13 6.85 15.11 24.74 6.02
7 margin % % % 9% % 9% % % % 15% % % %
Profitabi
lity Operat
ing
profit 12 9.18 14.70 41.20 12 28.83 5.12 33.57 46.85 33.07 61.13 17.47
8 margin % % % 15% % % % % % % % % %
 Return
on -
equity 10 −7.29 17.81 15 12.95 12.04 8.91 152.3
9 (ROE) % % % 12% 48% % % % 9 % 8% % 7% 11%

Return
on
capital
1 emplo 5.02 0.32 10.25 29.27 17 10.16 17.77 11.21 8.77 16.45
0 yed 9% % % % % % % % % 9% % 5.31% %

Return -
on −1.32 4.72 3.70 22.64 4.34 3.48 1.94 5.91 35.76 2.66
11 assets 5% % % % % 6% % % % 4% % % %
16. CONCLUSION
The financial accounting report concludes by emphasizing the crucial role played by the
energy sector in India's economic growth, specifically focusing on companies such as Adani
Green, Reliance Power, Hitachi Energy, and others. These companies are instrumental in
driving India’s shift towards renewable energy and meeting the nation's escalating power
requirements resulting from industrialization, urbanization, and government initiatives.
Adani Green and the Advancement in Renewable Energy
Adani Green has established itself as a frontrunner in the renewable energy industry. Aligned
with India’s ambitious goal of achieving 500 GW of renewable energy by 2030, Adani
Green’s robust expansion in solar and wind energy projects is in sync with the country's
vision. The company’s strategic investments in large-scale projects ensure its pivotal role in
India’s pursuit of energy sustainability. Despite its strong market position, Adani Green
encounters challenges related to its high debt levels, which are evident in its financial ratios.
The company’s liquidity challenges, reflected in its cash flow and working capital
management, present significant risks. Addressing these issues is critical for its long-term
growth and financial stability.
Reliance Power’s Transition
Reliance Power is undergoing a substantial transition, redirecting its focus towards renewable
energy while retaining investments in thermal power. The company is striving to diversify its
portfolio and manage operational expenses. Financial ratio analysis indicates that while the
company has succeeded in boosting its revenues, profitability is a concern due to escalating
operational costs and regulatory hurdles. Reliance Power’s future hinges on its ability to
streamline operations, capitalize on renewable opportunities, and effectively tackle cost
management challenges. Its diversification strategy is essential to maintain competitiveness
in India’s rapidly evolving energy market.
Hitachi Energy’s Emphasis on Technology and Innovation
Hitachi Energy stands out in the energy sector due to its focus on technological innovation
and digitalization. With a strong emphasis on leveraging advanced technologies to meet
future energy demands, the company has consistently maintained a solid financial position.
Hitachi Energy’s lower debt levels compared to its counterparts provide a secure financial
base, enabling the company to invest in long-term growth endeavors. As energy companies
increasingly prioritize sustainability, Hitachi Energy’s strategy of integrating technological
advancements with environmental considerations positions it favorably for sustained success.
Suzlon Energy, a prominent player in the wind energy industry, maintains its dominant
position with a large capacity of installed wind farms. Suzlon's leadership is evident in its
operational capabilities and market share. The company is commendable for its ability to
manage operational risks and adapt to changing market dynamics. However, it encounters
challenges related to working capital management and profitability. Financial analysis
indicates that while Suzlon is a leader in its industry, it needs to enhance operational
efficiency to ensure long-term profitability. The company's ability to address these challenges
will be crucial in maintaining its leadership in the renewable energy sector.
The financial ratio analysis in this report provides a comprehensive perspective on each
company's financial health and operational efficiency. Liquidity ratios demonstrate varying
levels of performance across companies, with some managing their short-term obligations
more effectively than others. Solvency ratios reveal the heavy reliance on debt for companies
like Adani Green and Reliance Power, raising concerns about their long-term financial
stability. Profitability ratios, such as return on assets and operating profit margins, showcase
the operational efficiencies achieved by companies like Hitachi Energy, while others, such as
Suzlon and Adani Green, grapple with profitability challenges.
The overall performance of these companies reflects the broader trends in India's energy
sector. The transition towards renewable energy is apparent, with companies making
substantial investments in solar and wind projects. However, the financial health of these
companies varies, with some struggling to balance high debt levels, liquidity issues, and
profitability concerns.
The energy sector in India presents a combination of opportunities and challenges. The
growing demand for energy, fueled by population growth, industrialization, and government
initiatives like "Make in India," has created significant opportunities for private sector
companies. The government's emphasis on renewable energy, backed by favorable policies
and incentives, offers a promising avenue for growth. However, companies in the energy
sector face several challenges, including regulatory risks, operational inefficiencies, and
financial constraints.
The transition from traditional thermal power to renewable energy sources such as solar and
wind is picking up speed. Companies that can adjust to this transition and innovate in energy
storage, grid management, and energy efficiency will have a competitive edge in this
industry. However, those that neglect to tackle operational inefficiencies and financial
management challenges may find it difficult to stay competitive.
Strategic Recommendations
For long-term success and sustainability, energy companies need to implement various
strategic measures. These measures include:
1. Enhancing Working Capital Management: Firms need to handle their receivables and
inventories more effectively to enhance liquidity. Improved cash flow management will help
address the liquidity challenges faced by companies like Adani Green and Suzlon Energy.
2. Managing Costs and Operational Efficiency: Companies should concentrate on cutting
operational costs and boosting profitability. This can be achieved through better cost control,
improving production efficiencies, and leveraging technological innovations, as demonstrated
by Hitachi Energy.
3. Dealing with Debt: High levels of debt are a major worry for many companies in this
industry. Firms need to work on reducing their dependence on debt by optimizing their
capital structures and exploring alternative financing options, as seen in Reliance Power’s
efforts to reduce its debt burden.
4. Investing in Renewable Energy: Companies should persist in investing in renewable
energy projects, taking advantage of government incentives and private investments. The
focus should be on high-return projects that align with the government’s renewable energy
targets.
5. Boosting Technological Capabilities: The energy sector is evolving rapidly, with
advancements in digitalization, energy storage, and smart grid technologies. Companies that
invest in these areas, as Hitachi Energy has done, will be better positioned to meet future
energy demands and improve operational efficiency.
6. Emphasis on Sustainability and ESG Initiatives: It is essential for companies to realign
their operations in accordance with global sustainability objectives, aiming to decrease their
carbon footprints and embrace eco-friendly practices. This approach will not only bolster
their standing in the market but also guarantee adherence to regulatory standards.
Conclusion
The energy sector in India stands at a crucial point, with substantial growth prospects fueled
by the country's emphasis on renewable energy and sustainable progress. Companies such as
Adani Green, Reliance Power, and Hitachi Energy are leading this transformation.
Nevertheless, financial hurdles like liquidity issues, high levels of debt, and operational
inefficiencies need to be tackled to ensure enduring success.
This report highlights the significance of strategic planning, financial judiciousness, and
operational effectiveness in overcoming the challenges in the energy sector. Businesses that
can harmonize these factors while seizing the opportunities in renewable energy will be
strongly positioned to steer India's energy future. The path ahead is brimming with potential,
but it demands cautious navigation, astute investments, and an unwavering focus on
innovation and sustainability to attain success in this vibrant and evolving industry.