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K.P. Energy Ltd.

BSE: 539686 Sector: Infrastructure
NSE: N.A. ISIN Code: INE127T01013
BSE 00:00 | 08 Aug 275.80 23.35
(9.25%)
OPEN

264.95

HIGH

277.65

LOW

244.00

NSE 05:30 | 01 Jan K.P. Energy Ltd
OPEN 264.95
PREVIOUS CLOSE 252.45
VOLUME 202326
52-Week high 372.45
52-Week low 68.95
P/E 14.65
Mkt Cap.(Rs cr) 307
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 264.95
CLOSE 252.45
VOLUME 202326
52-Week high 372.45
52-Week low 68.95
P/E 14.65
Mkt Cap.(Rs cr) 307
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

K.P. Energy Ltd. (KPENERGY) - Chairman Speech

Company chairman speech

LETTER TO SHAREHOLDERS

Driven by capabilities Inspired by opportunities

All the parameters of performance and future growth sticks are now in our favour. Ourcapabilities are proven. Opportunities are abundant. Investment environment is favourable.

"Our greatest glory is not in never falling but in rising every time wefall" -

CHINESE PHILOSOPHER CONFUCIUS

PARTICULARS 2017 2018 2019 2020 2021
RS IN CRORES
Top-line 113.03 60.24 158.88 74.71 70.51
Bottom-line 16.89 1.88 19.44 1.10 7.2
Team Strength 62 87 144 117 120
(#)

DEAR INVESTORS

Key markers for KP Energy in FY21 are

1. Completing the much-awaited and delayed 220kv transmission line and energisationof 300 MW substation for Gadhsisa Project in October 2020. Key Take-away: Team KP Energynever quits irrespective of project challenges or policy changes.

2. Execution of Definitive Agreement with CLP for Sidhpur-I project of 252 MW ProjectDevelopment & 25 years of OMS services in December 2020. This project is anendorsement of KP Energy's competency and reputation to execute large-scale projectsdirectly with the customer not through OEMs. Key Take-away: KP Energy has risen to closeprotracted contract negotiations deal efficiently at both fronts onsite for executionand on-desk for documentation with International Standards in Energy Segment.

3. Successful & harmonious resolution of pending issues with Suzlon EnergyLimited for previous project account receivables. Key Take-away: Move on. Age-olddifferences are better solved in boardrooms than in courtrooms - balance relationships andbusiness must go together.

4. The signing of Long Term Maintenance Contracts with Suzlon Global Services of71.4 MW which was pending since FY17. KP Energy is eying to expand its basket of O&Mbusiness as we progress in the execution of more such contracts.

Key Take-away: Efforts on the ground and efficiency in bringing best Infrastructureavailability is not complete until it is reflected on P&L.

Key growth pointers from Regulators for wind industry available to the benefit of KPEnergy:

The Government of Gujarat has allowed using revenue lands erstwhile allotted andacquiring balance lands privately to complete wind projects until SECI tranche-VII inGujarat.

Key Take-away: KP Energy will execute its Sidhpur-I site for 252MW for CLP. It canfurther execute another ~300MW Site for its Sidhpur-II from already acquired revenuelocations.

The Government of Gujarat has extended the validity period for the earlier expired WindPolicy until March 2022.

Key Take-away: Investment in wind greatly benefited and after many years as the firsttime policy for wind is much more attractive than solar for Captive Industry Investors.

GERC has issued its Order for Tariff Fixation for Hybrid Projects to be set up duringthe Policy period until March 2023.

Key Take-away: This has virtually brought Gujarat State Projects (read KP Energy) tothe limelight on the energy map of India with too many opportunities for Commercial &Industrial segments within Gujarat to generate power from renewables.

SECI has focused on chasing the completion of already won projects and slowed down newbids.

Key Take-away: Companies engaged with bidding have now started focusing on executioncontracts and realising the actual Levelised Cost of Energy (LCOE) instead of focusingonly on auction prices and winning bids.

Severe WTG supply constraints. All major WTG manufacturers are fully booked with theirproduction capacities:

Key Take-away: Lull in the market has evaporated. Capacities available are booked in aqueue and the real investments and execution capabilities of KP Energy are now beingcapitalised at the correct pricing and margins.

Economic downfall due to Covid Crisis - Every Industrialist now looks to economise itsproduct costs and absorb the huge increase in commodity prices by investing in captivepower through renewables.

Key Take-away: Almost every segment which never entertained captive generation oropen-access power has been aggressively looking for economical energy from renewables. KPEnergy has a large land bank available for the Captive Segment of Gujarat.

India witnessed the highest installed generation capacity from RE sources (excludinglarge hydro projects) to 100GW.

Key Take-away: Renewable Energy in India is no more an alternate Source of Energy. Itis now progressing towards the primary source of energy.

I have all pride and pleasure to recast my 2016 message - "All the parameters ofperformance and future growth sticks are now in our favour. Our capabilities are proven.Opportunities are abundant. Investment environment is favourable. Above all blessingsfrom the almighty are blistering. So let us strike the iron as much as we can whileit's hot.

I am correlating our stand with famous quote from Lord Winston Churchill -

"Kites rise highest against the wind - not with it"

We at KP Energy are all set to rise above the storms grab beyond anybody's reach andmake a turnaround. Our Kite has attained stability and grip over turbulence. It is all setto rise to the highest now.

Passionately Yours
ASHISH A MITHANI
CHIEF EXECUTIVE OFFICER

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