My dear fellow shareowners
It gives me pleasure to share with you the highlights of our Companys performancefor the financial year 2016-17.
Reliance Powers projects have demonstrated another year of consistent operationalperformance. Our flagship 3960 MW Sasan Ultra Mega Power Project (Sasan UMPP) theworlds largest integrated power plant cum coal mine continued to deliver "Bestin Class" operating performance in both coal and power sectors. Similarly our othergenerating plants viz. 1200 MW coal-based Rosa Power Plant located in Uttar Pradesh 600MW Butibori Power Plant located in Maharashtra 40 MW Solar PV plant located in Rajasthanand 45 MW Wind power project located in Maharashtra also delivered strong operatingperformance. The 100 MW Solar Thermal plant located adjacent to the Solar PV plant inRajasthan achieved 133 MW of highest load during the year.
Driving and sustaining operational and business excellence continued to be the focus ofthe year and we plan to build further on this platform to raise the levels of excellence.
While your Company continues to deliver robust operational and financial performanceit is committed towards the society and environment through its various EnvironmentHealth & Safety (EHS) and CSR initiatives.
The Companys plants have received recognition in the form of number of awards andaccreditations for achieving all-round operational excellence as well as for achievementsin Social Responsibility Health Environment and Safety initiatives during the year.
The highlights of the Companys consolidated financial performance for the yearare:
Total income of Rs 10892 crore as compared to Rs 10622 crore in the previousyear.
Net profit of Rs 1104 crore as compared to Rs 895 crore in the previous year.
Earnings Per Share (EPS) of Rs 3.94 as compared to Rs 3.19 in the previous year.
The audited Financial Statements of the Company for the year 2016-17 have been drawn upin compliance with the requirements of the Companies (Indian Accounting Standards)(Ind-AS) Rules 2015.
Your Company has been delivering consistent profits cash flows and enjoys awell-capitalized balance sheet with one of the lowest debt to equity ratios in theindustry.
Your Companys risk management initiatives with respect to Samalkot Gas-basedPower Project Tilaiya UMPP and Krishnapatnam UMPP are also progressing well. Pursuant tothe Memorandum of Understanding signed with Bangladesh Power Development Board (BPDB) inJune 2015 to set up a 3000 MW of Combined Cycle Power Project (in Phases) and a LNGterminal in Bangladesh your Company achieved a major milestone when it initialled theProject Agreements to set up the first phase of 750 MW Combined Cycle gas-based powerproject at Meghanaghat near Dhaka and a LNG receiving terminal at Kutubdia Island nearChittagong.
The Company plans to pursue value accretive growth through a mix of projects underdevelopment aggregating to 10000 MW of power generation projects after putting relevantviability drivers in place.
Your Company has always maintained the highest governance standards and practices byadopting as is the norm for all constituent companies of the Group the "RelianceGroup - Corporate Governance Policies and Code of Conduct". These Policies and Codeprescribe a set of systems processes and principles which conform to the highestinternational standards and are reviewed periodically to ensure their continuingrelevance effectiveness and responsiveness to the needs of investors both local andglobal and all other stakeholders.
Our portfolio of projects requires substantial use of natural resources such as landwater and minerals. We take adequate care in designing our power generation plants in amanner that optimises the utilisation of land thereby bringing down the aggregate landrequirement and minimising the potential for displacement of local communities. We arealso adopting cleaner technologies related to power generation that reduce the consumptionof fuel and water required for plant operations thereby conserving precious naturalresources and contributing to a greener and healthier environment. Sasan UMPP has thedistinction of being one of the most efficient super critical thermal plants in thecountry in terms of fuel and water consumption.
Our projects are operating in areas which are currently in development phase and wecontinue to contribute towards improving the quality of life of the communities living inthese areas. Indeed participatory development-oriented approach that strengthens our bondwith the local population is at the core of our business model.
As part of our initiatives towards discharge of our Corporate Social Responsibilities(CSR) we have made significant outlays in healthcare education and enhancing livelihoodopportunities for the communities.
Our founder the legendary Shri Dhirubhai Ambani gave us a simple mantra: to aspire tothe highest global standards of quality efficiency operational performance and customercare. We remain committed to upholding that vision.
Thank you shareowners for your continued support in our journey of deliveringconsistent competitive profitable and responsible growth.
Anil Dhirubhai Ambani