Past years have been a test in no uncertain terms Tough enough to test our mettleTough enough to make us stretch and keep us nimble footed and definitely tough enough tohelp us emerge tougher. With the Indian economy resuming the path of resurgence the powersector reeled under several foundational issues. The overcapacity in the power generationsector built pre-2014 proved a challenge owing to withering demand from manufacturingsector in the country. This coupled with still high T&D losses weak financialcondition of state distribution companies and uneven demand supply across regions deferredorder flows and at the same time further improved the opportunity perception for futuregrowth. As our Company's founder
Shri S N Bhatnagar often said silver lining is accentuated during the cloudy days.2016-17 was one such cloudy year. The company's financial performance bore the brunt ofhigh debt accumulated on account of capacity expansion as well as inorganic growthinitiatives undertaken.
We remain confident that the country's power infrastructure sector is set for anaccelerated growth especially in the transmission and distribution segment. With thepresent government going all out to promote the country as a global manufacturing hub theuninterrupted availability of quality power will be the key to its success. The powerministry's move to infuse clarity on generation resources will lead to responsibleexecution.
Indian power sector is now evolving and opening up to newer products and sustainableofferings. Government's thrust on smart cities smart grids as well as ecologicallysustainable sources is setting a chain of innovation in motion. Our ability to innovateand customize solutions has enabled us become a partner to various state powerdistribution companies and Powergrid to implement using innovative practices.
Be it efficiency management or controlling power theft or products designed to improvesafety parameters we are at the forefront of inspiring positive impact. Moreover ourforay into global markets is gaining traction with some improvement being achieved withexport orders. We believe that the trend would continue in the coming years as well.
At the end I would like to reiterate much of the stress in the present system will berelieved by December 2018. We will not only shape up our finances by controlling debt andintroducing growth capital; but would also help us utilize our capacities with much moreefficiency to improve revenues and profitability. I would like to thank every member ofTeam Diamond Power for being in sync with our vision for the company and working towardsit. I would like to thank all our shareholders for your trust and your wholeheartedsupport.
From the desk of Jt. Managing Director
We are not defined by the opportunities we convert but the challenges we overcome.2016-17 proved to be a challenging year too like its predecessor. However sometimes thebest way to respond to any challenge is to focus on one's strengths. While the debtresolution topped our agendas for the year we chose not to lose sight of the greatervision of the company. We are in a capital intensive business and the best way to ensuresustained growth is by tapping into more orders and executing them more efficiently.Towards this we concentrated our efforts on cost controls quality improvements andhigher efficiency across our units. Small steps conquer long roads. And with each passingday we chose to think small and continued to persevere.
The debt woes aside it was business as usual with us. We continued to win orders. Wecontinued to improve client experiences. We continued to further improve our valueproposition. We continued to implement technology and automation across our businessunits. We continued to eliminate wastage. We continued to strengthen our green quotient.
We continued to do just that unrelenting execution to help us shape up in more than oneways. The results are visible. Despite our financial challenges none of our clients havewalked away. Our stakeholders and investors stand beside us together to contribute towardsresolution. Our vendors continue to support us through thick and thin. In the past fortyyears we have always believed that the quality of relationships often define the qualityof business. To that count we feel proud and humble. We have built strong foundations inthe past four decades and are confident that this phase will not undo the hard work anddetermination put in by each and every member of the company. It's just a matter of time.
Dr. Sumit Bhatnagar
Jt. Managing Director