Insights of Sterlite Power Transmission Ltd

The consolidated income for FY22 was at `59,946 million (US$ 789 million), a 57% increase from `38,170 million (US$522 million) in FY21. The Company’s consolidated EBITDA was `13,538 million (US$178 million) in FY22, a 25% decrease from `17,932 million (US$245 million) in FY21. The consolidated profit was `4,401 million (US$58 million) in FY21 compared to profit of `8,698 million (US$119 million). The profit was mainly driven by profit on sale of commissioned assets in India. Consolidated Net worth improved to
`16,988 million (US$224 million) in FY22, compared to `10,966 million (US$150 million) in FY21.

The consolidated income for FY 2019-20 was at Rs 51,583 Million (US$ 699 Million), a 44% increase from Rs 35,715 Million (US$ 484 Million) in FY 2018-19. The company’s consolidated EBITDA was Rs 24,056 Million  (US$ 326 Million) in FY 2019-20, a 434% increase from  4,501 Million (US$ 61 Million) in FY 2018-19. The consolidated profit was Rs 9,417 Million (US$ 128 Million) in FY 2019-20, compared to loss of (Rs 5,237 Million) (US$ 71 Million) in  FY 2018-19. The increase in the profit was mainly driven by profit on sale of commissioned assets, both in India & Brazil. Pursuant to the approval from National Company Law Tribunal vide its order dated May 22, 2020 sanctioning scheme of merger, SPTL has been merged with its subsidiary SPGVL. The Company has accounted for synergies on account of merger on the income tax expenses of Rs 1,389 Million  (US$ 19 Million) during the year. Consolidated Net worth improved to Rs 608 Million (US$ 8 Million) in FY 2019-20, compared to (Rs 6,755 Million) (US$ 92 Million) in FY 2018-19. 

During FY 2019-20, the Company secured 3 new transmission projects in India under TBCB route, with a cumulative capex value of Rs 56,000 Million (US$ 759 Million). The Company won 30% of market share of the projects bid during the period.

The global infrastructure business continues to maintain its leadership position in ensuring on time project execution within budgeted cost. Leadership in leveraging technology, ability to attract rich talent, cost competitiveness has been instrumental in driving the growth strategy of the Company. This year the Company commissioned its first project in Brazil, Arcoverde Transmissao De Energia S.A, 28 months ahead of schedule. 

Profitability has been the key focus for the Company. During FY 2019-20, Sterlite Power sold to India Grid Trust its commissioned projects namely NRSS-29, OGPTL & ENICL and recorded a gain on sale of `16,450 Million (US$ 223 Million). The capital generated through these monetisation activities is used for reinvesting in under-construction projects in India.

Further during the year, Sterlite Power replicated the India model in Brazil and monetised three projects namely Pampa Transmissao de Energia S.A., Arcoverde Transmissao De Energia S.A. and Sterlite Novo Estado Energia S.A, and recorded a gain on sale of Rs 4,085 Million (US$ 55.3 Million). 

Subsequent to the year end, the Company commissioned 10,270 Million GPTL project that will enhance the power capacity of Gurugram and Palwal areas in the state of Haryana by ~2000 MW. The Company has completed sale of stake in GPTL to Indi Grid Trust as per the Framework agreement.

FY24 9 Months Financial Highlights

This drop in profitability is primarily due to an increase in EPC contract cost of a project by Rs 160 Crs. As the project cost increase needs to be recognised once the cost is incurred, the impact of the same is observed in the 9 months financials owing to timing mismatch between Revenue and costs.