Maintain a Strong Financial Profile

Capital Linkages:

Financial Capital

Over the years, we have demonstrated significant prudence in our capital allocation decisions while balancing our growth aspirations. Our balance sheet is one of the strongest in the power sector, which helped us to steer through the difficult sector dynamics in the recent past. Our deleveraging efforts over the last two years have positioned us to pursue lucrative growth opportunities and enhance our asset portfolio. Maintaining a robust balance sheet remains our strategic priority.

FY2019 Highlights:

• During the year, we reduced our Net Debt by `1,228 Crore through prepayments/scheduled repayments
• Net Debt to Equity declined to 0.85x as on March 31, 2019 vis-à-vis 1.02x the previous fiscal

Continue De-risking the Business

Capital Linkages:

Financial Capital, Social and Relationship Capital and Manufactured Capital

By tying-up our capacities through short-term, medium-term and long-term PPAs with diversified players, we will continue to de-risk our business and maximise our capacity utilisation. We also continue to devise prudent hedging strategies, thereby insulating ourselves from external risks such as foreign exchange variations and fuel price fluctuations.

FY2019 Highlights:

Considerable addition in the long-term PPAs in FY2019:

• Secured 250.5 MW long-term PPA within the group, at various plant locations
• Overall PPA proportion improved to 80.4% as on March 31, 2019 vis-a-vis 75.0% a year back

Expand Capacities and Scale up in a Calibrated Manner

Capital Linkages:

Financial Capital, Manufactured Capital and Intellectual Capital

As a growth-focused business, we are in constant pursuit of avenues to enhance our business portfolio and create value for all our stakeholders. We are evaluating multiple opportunities across thermal, hydro and renewable segments and will pursue these in a calibrated manner.

FY2019 Highlights:

• During FY2019, we made our foray into the non-hydro renewable segment by commissioning 10 MW solar projects within the group

Operate Efficiently with Sustainability Focus

Capital Linkages:

Manufactured Capital, Intellectual Capital, Natural Capital, Social and Relationship Capital and Financial Capital

Our growth has been a function of continuously improving operating efficiencies by adopting best global industry practices and innovations. Our commitment to operating responsibly has also kept pace with our scale and we are poised to return back to the community and the environment in which we operate.

FY2019 Highlights:

• In FY2019, we continued to reduce our O&M costs through reducing auxiliary consumption, embarking on robust digitisation drives and improving fuel efficiency
• Our average per MW O&M cost reduced to `18.7 Lakh/MW in FY2019 from `19.3 Lakh/MW in FY2018
• FTSE Russell included us in the ‘FTSE4 Good Index Series’, which is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance practices