I am pleased to share with you our Twelfth Annual Report highlighting financialperformance of the Company for the financial year 2015-16. The world economy has seenturbulence in the past year from Britain exhibiting its interest in exiting European Unionto China sitting on huge capacity due to slowdown in world demand. India has howeverwithstood the above and has remained a sweet spot for the investment community. Governmentof India on the back of good monsoon is also providing impetus to the economy throughSeventh Pay Commission and focus towards rural economy and infrastructure projects. PowerTransmission and Distribution companies who were under pressure due to distressedcondition of Discoms have received respite due to rescue scheme from Government of Indiain the form of UDAY (Ujwal Discom Assurance Yojna). UDAY is the financial turnaround andrevival package for electricity distribution companies of India with the intent to find apermanent solution to the financial mess that the power distribution is in. The schemewould help Discoms break-even in next two to three years. Your company has generated astandalone operating revenue of INR 2383 crore in FY 16 against INR 1905 crore in FY15a growth of 25%. Similarly at consolidated level operating revenue stood at INR 4294crore in FY16 against INR 2673 crore in FY15. The standalone operating profit excludingnon-cash expense such as depreciation and amortization increased by 14% in FY16 over theprevious financial year. The same increased by 20% in FY16 over the previous financialyear at consolidated level. Bowing to pressure from high cost of debt standalone netprofit of your Company declined by 13% in FY16 against the previous financial year FY15.The same however increased by 1% at consolidated level due to contribution fromsubsidiaries and group companies. This is also the year when your company enjoyed thebenefit of full year revenue accrued to it from its first Build Own Operate Manage (BOOM)project.
Your company off late has been a victim of unprecedented challenges arising eitherout of execution of projects because of Right Of Way (ROW) or delay in receipt of paymentsfrom its clients specially Discoms. Being in infrastructure space your company wasrequired to invest in Capital Expenditure for smooth running of the operations. Thisaffected the bottom line in the form of higher depreciation cost and interest expense.Your company has approached Joint Lenders Forum (JLF) under RBIs JLF framework torestructure the Companys debt in light of RBI circular on Scheme for
Sustainable Structuring of the Stressed Assets (S4A). We are hopeful the scheme wouldhelp your company overcome he present financial challenges. I take this opportunity tocongrats Government of India for taking initiative in demonetizing Rs 1000 and Rs 500notes. This would not only help tackle malaises of parallel economy counterfeit currencyand terror financing but would also flush money into banking system thereby keeping checkon inflation and inducing banks to lower interest rates. A lower interest rate isimperative for infrastructure to flourish. I express my sincere gratitude and indebtednessto all the stakeholders for their patience and support during these turbulent times. Ialso extend my gratitude to our human capital for their dedication and support.
Chairman & Managing Director