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Torrent Power Ltd.

BSE: 532779 Sector: Infrastructure
NSE: TORNTPOWER ISIN Code: INE813H01021
BSE 16:01 | 16 Aug 581.85 2.70
(0.47%)
OPEN

579.00

HIGH

584.05

LOW

573.85

NSE 15:56 | 16 Aug 580.95 1.75
(0.30%)
OPEN

579.20

HIGH

583.95

LOW

573.75

OPEN 579.00
PREVIOUS CLOSE 579.15
VOLUME 14713
52-Week high 606.05
52-Week low 416.00
P/E 15.07
Mkt Cap.(Rs cr) 27,965
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 579.00
CLOSE 579.15
VOLUME 14713
52-Week high 606.05
52-Week low 416.00
P/E 15.07
Mkt Cap.(Rs cr) 27,965
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Torrent Power Ltd. (TORNTPOWER) - Chairman Speech

Company chairman speech

Accelerating responsible growth for a sustainable future

Dear Stakeholders

On behalf of the Torrent Power family I welcome you to our firstIntegrated Annual Report that provides you with a view of our financial and non-financialperformance for FY22. As a Company we have always believed that we must create lastingvalue beyond financial returns for our stakeholders. This report shares the progress andchallenges we have faced as we accelerated our growth with sustainability in the reportingyear. This report also marks an important milestone in our continuous efforts to providestakeholders with comprehensive and transparent information about the Company.

POWER SECTOR SCENARIO

As the pandemic ebbed FY22 offered us new opportunities coupled withsome challenges. The year started with a favourable outlook with a spike in power demand.In the first half of the year we saw a growth in power demand of around 12% highest inthe decade. However the growth trajectory soon derailed due to supply constraints of coalaccompanied by high fuel prices of coal and gas. The Russia-Ukraine conflict and economicsanctions on Russia further impacted the situation. This was a year of power crisis wherewe saw load curtailment in some states due to the non-availability of fuel accompanied bya sharp increase in power rates. The rates were so high that the regulators had tointervene and cap power prices. The successive waves of the Covid-19 pandemic throughoutthe year heightened business continuity concerns. However the resilience of our teams andthe efficiency of our plants enabled us to deliver on our commitments to customers andother stakeholders despite these challenges.

Against the growing challenges of climate change a paradigm shift toresponsible energy generation distribution and consumption is underway. The recentgeopolitical conflicts reinstated the need for a swifter transition to cleaner fuelswhich is imperative for sustainable development. Countries around the globe are trying toreduce their reliance on fossil fuels and increase the concentration ofrenewables in theirenergy portfolio. India is also targeting about 500 GW of installed renewable energycapacity by 2030. Our country has been a leader in renewable energy installation and willlikely lead the world on this journey to clean energy in the coming years. Various effortsby the Government to promote the use of clean energy and reduce carbon footprint throughmultiple initiatives will accelerate India's move towards net-zero carbon emission by2070.

The development of critical infrastructure sustains economic growth.The welfare of our people is intrinsically linked with the availability of adequate powergeneration capabilities and supplies. India has seen a GDP growth of 8.70% in FY22 whichwas led by public and private investments. The pace of infrastructure development anddemand for electricity has also increased rapidly. This has led to an urgent need to scaleinstalled power generation capacities and expand distribution transmission and gridinfrastructure. These efforts must be facilitated by adequate government support throughpragmatic power sector reforms and private sector investments.

ACCELERATING GROWTH WITH SUSTAINABILITY AT TORRENT POWER

Sustainable Growth

We are one of the industry leaders with integrated operations acrosspower generation transmission and distribution. During FY22 we grew our operationalfootprint inorganically through several strategic acquisitions to address the changingneeds of our stakeholders and the dynamic external environment.

During the year our Company successfully completed the acquisition of51% stake in the power distribution company of Dadra & Nagar Haveli and Daman &Diu union territory spanning an area of 603 sq. kms. The target company distributes 9billion units of power and has annual sales of ?4500 Crore. Your Company has beenmanaging these operations from April 1 2022 and supplying electricity to around 1.5 lakhcustomers.

During the year our Company also expanded its Renewable Energyportfolio (both solar and wind) by acquiring 231 MW of additional capacities. With suchacquisition the Company's renewable asset base grew to 1018 MW and expanded our reach tothe new states of Rajasthan and Madhya Pradesh. We have another 565 MW of renewableprojects in the pipeline.

These investments will help us grow sustainably and profitablycreating value for our stakeholders in the medium and long term.

Operational and Financial Highlights FY22

We are led by our mission of powering India's economic growth andequitable development through access to reliable energy. We continued to deliveruninterrupted power supply to our customers - even in a year marked by a power crisis. Ourefficient operations ensured that our distribution losses at licensed distribution remainone of the world's lowest at 3.9%. Our gas-based generation business had modest operationsgiven fuel supply constraints while the coal-based plant performed much better than lastyear because of resurgence in demand.

In FY22 our Earnings before Interest Depreciation Tax andexceptional items was higher by 6.1% compared to the previous year. The financials includea one-time non-cash charge of f1300 Crore as a result of impairment of the DGEN plant.Excluding such impairment charges (net of tax) the adjusted Total Comprehensive Income(TCI) for FY22 remained higher at f1389 Crore compared to f1300 Crore for FY21.Company's financial performance is described in greater detail in the ManagementDiscussion and Analysis section of this report.

Strengthening the Social Pillar

Since our inception ensuring the safety and well-being of ouremployees communities customers and other stakeholders has been our priority. Ourwell-structured policies and ingrained safety culture have allowed us to operate withstringent safety measures serving the interests of all our stakeholders.

During the year we won the British Safety Council's prestigious Swordof Honour award for excellence in health and safety and the Globe of Honour award forenvironmental sustainability. These recognitions testify to our high operational healthand safety standards and environmental management policies and processes. We achieved fivestars (>92% score) in the British Safety Council's audit and are one of just fiveorganisations worldwide (of which only two including Torrent Power are electricutilities) to receive both these prestigious recognitions in 2021. Further we are thesecond Company ever from India to win both these accolades in a single year a remarkableachievement by no means.

Employees are our strength and their determination and contributionshave made us one of the leading power utilities in India. We strive to foster the holisticdevelopment of our employees to create a future-ready workforce. A conducive and safeworkplace keeps our employees motivated and increases productivity leading to higheroperational efficiencies and customer delight. We are focused on building a workplacewhere diversity is respected and actively encourage women's participation in theworkforce. This year women constituted approximately 20% of the talent we recruited.

We are committed to partnering with our community to help them grow aswe expand our business. Through the reporting year we sharpened our focus on ourcommunity engagements and CSR endeavours. Various initiatives were undertaken to expandour flagship CSR platform - REACH (Reach EAch CHild) which focuses on paediatric andwomen's care. Other CSR programmes of the group including Sikshasetu a teaching andlearning initiative Pratiti focusing on park development and maintenance and Abhivyaktiwhich promotes art and culture are also making a tangible difference in the lives of ourcommunity members.

BUILDING A FUTURE-FIT COMPANY

Our focus on balancing financial and non-financial priorities and riskmanagement is strengthening the foundation of our business and is critical for ourcontinued success. We will continue looking for new opportunities in the distribution andtransmission sectors through privatisation or franchising of distribution areas. We aim toincrease our renewable portfolio through new bids or acquisitions in the coming years. Asalways we remain steadfast in our commitment to good governance a customer-centricapproach and creating sustainable value for our stakeholders.

I express my gratitude to our stakeholders for their trust and faith inTorrent Power. With your support we are firmly placed to take your Company forward on apath of financial progress and a sustainable future.

Best wishes

Samir Mehta

Chairman

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