India Power on a growth trajectory
Bangalore, June 7, 2017: India Power Corporation Limited ("India Power"), a publicly listed, Kanoria Foundation entity, is on a growth trajectory with setting up and commissioning of another power plant of 36 MW solar in Uttarakhand at an investment of Rs 225 crore.This follows India Power's successful acquisition of 1,000 MW thermal power plant of Meenakshi Energy Private Limited, now known as Meenakshi Energy Limited, now known as Meenakshi Energy Limited ("Meenakshi"), owned by French power giant ENGIE. The joint venture between one of the largest German power utilities Uniper and India Power has also started its activities with management of power plants.
These along withcommissioning of 150 MW-unit out of 450 MW at the company's Haldia plant, lowerT&D losses and improving profitability are expected to result in multi-foldgrowth in India Power's businesses, maximising shareholders' value in theprocess.
The consolidatedestimated enterprise/asset value of India Power is now close to Rs 15,000crore, and with a combined debt of around Rs 6,000 crore the company is now oneof the less leveraged power generation and utilities companies in the country.
Commentingon the developments, Hemant Kanoria, Chairman, India Power, said: "Withover nine-decade long legacy, India Power has been navigating the fast-changingmarket scenario. The company has been growing its businesses profitably despitethe stress in the energy space in recent years. We are now on a high growthtrajectory, which will improve our financial performance further and enhanceshareholders' value. The power sector still has its challenges but we clearlysee growth prospects."
The Board ofDirectors at its meeting here today approved the company's audited financialaccounts for the year ended March 31, 2017 and recommended a dividend of 5% tothe shareholders.
India Powerclosed last financial year with a remarkable all-round performance. Theconsolidated profit after tax (PAT) was Rs 37.29 crore in 2016-17. Profitbefore tax (PBT) improved from Rs 46.55 crore in 2015-16 to Rs 61.96 croreduring the last financial year. Gross revenue for 2016-17 was at Rs 726.68crore compared to 760.99 a year earlier.
The Board ofDirectors has also appointed Raghav Raj Kanoria as Managing Director of IndiaPower.
Commentingon his appointment, Raghav Raj Kanoria, said: "I feel privileged andexcited to work with an excellent team of professionals in India Power. I havebeen working in the company for the last six years and across the distribution,finance, generation, mergers and acquisitions verticals, which has provided mewith valuable insights and hands-on experience. The team at India Power hasgreatly contributed to my intense learning. Our objective will be to strengthenthe company's leadership position in the power sector and create a"lateral thinking" organisation, which will enable us to capitaliseon the present acquisition opportunities in India and also introducetechnological innovations in order to reduce power costs for theconsumers."