A Statement from Chairman Vinod Kumar Dhall
I am happy to present to you our Annual Report for the financial year 2019-2020(FY2020).
With the global outbreak of COVID-19 pandemic and its impact on India the last fewmonths have been extremely challenging for almost everyone.
I hope all of you and your family members are healthy and safe and are followinggovernment healthcare guidelines to emerge from these critical times.
FY2020 began on a cautious note as the country was heading for a general election evenas a continuing undercurrent of the crisis around Non-Banking Financial Companies stillprevailed. Your Company performance was further stressed due to flooding in our Vadodaraplant impacting the operations of our switchgear factory in the city. It took us nearly amonth to get the plant running and able to execute many orders and projects. Your Companyhas to remain prepared in the face of continuing uncertainty arising from the virus. Whilewe did see a glimmer of positiveness in the economy for Q3 and beginning Q4 the spread ofCOIVD-19 the black swan event from mid-Q4 onwards left individuals companies andgovernments across the globe scrambling and this hit every stakeholder hard. Thefinancial year ended with the economy performing at 4.2% as India's economic growth hit aneleven-year low. The Indian government has announced several measures to meet theeconomic health and social impact of the crisis. Your Company was impacted by sloweconomic growth and COVID-19 resulted in flat revenues.
However despite the poor performance of the economy there was a silver lining - theenergy demand for FY2020 was higher by 1.2% year-on-year. Further the installed capacitysaw an increase by 3.9% to close the year at 370 Gigawatt (GW) capacity. It is equallyinteresting to see that renewables continued to post strong growth numbers. An Institutefor Energy Economics and Financial Analysis report mentioned that renewable energydelivered more than two-thirds or 9.4 GW of India's new generating capacity additions inFY2020 while new thermal power plants delivered 4.3 GW net of the 2.5 GW removed due toend-of-life plant closures.
This is a paradigm shift that we are witnessing in the Indian power sector. While thegovernment is continuously supporting the country's move towards clean and green energyanother important reason which will ensure the continuous growth of renewables is theavailability of domestic and global finance. It is clear that renewables will lead thecharge in creating energy and therefore connectivity' across the country.
This fundamental change will imply a complete transition of the power industry and itsinfrastructure and we are ready to help Indian utilities navigate this challengingtransition especially in turbulent times. With our commitment to the New World ofEnergy' we continue to lay emphasis on the need to Decentralise Digitise and Decarboniseand support them to attain an energy infrastructure which is more efficient sustainablereliable and connected.
Globally we continue to invest heavily in key areas like Internet of ThingsArtificial Intelligence Data Centers and Big Data Analytics among others and in India weare working extensively with customers to offer them optimal solutions based onEcoStruxure our next generation of active energy management and automationarchitecture innovations to help them do a seamless switch in their digital journey inthe energy management space.
FY2021 has begun on a challenging note however we have started the year with ahealthy pipeline with order book position of around Rs 9000 million. Further we aresharply focussed on the good cost and bad cost to ensure that we sail through the currentnew normal' financial year. However my team and I are confident that we shallovercome this new normal' and find many opportunities where others find challenges.
I remain hopeful that government organisations and individuals working together canand will overcome this great challenge to humanity.
I would like to sincerely thank all our shareholders customers suppliers communitiesand other stakeholders for their continued and unstinted support to the Company during theyear.
I would also like to thank all the employees and my colleagues on the Board ofDirectors for their tireless commitment to enhancing the performance and health of theCompany.