Sterlite Power Completes Merger of Subsidiary; Announces Annual Results

Transmission Gets Stronger Push with Approval of Green Power Transmission Line in Bundelkhand

Sterlite Power has announced the completion of the merger of its wholly-owned subsidiary Sterlite Power Grid Ventures with the parent entity.

Sterlite Power, a leading global power transmission player, has announced the completion of the merger of its wholly-owned subsidiary Sterlite Power Grid Ventures Ltd. with the parent entity. With this merger, the company further strengthened its position in the marketplace by integrating operations and streamlining the corporate structure. Post the merger, the firm also announced the audited annual results for Financial Year 2020 recording “outstanding growth” in revenue and profit.

Key Financial Highlights

Consolidated Revenue up by 44% y-o-y at Rs 5,158 crore

Consolidated EBITDA up by 434% y-o-y at Rs 2,406 crore

Consolidated Profit After Tax up by 280% y-o-y at Rs 942 crore

The firm also reiterated that it is increasingly focused on integrating renewable energy (RE) to the grid and has been awarded vital projects connecting the national grid to clean and green energy. Adding that it has added several Inter-State Transmission System (ISTS) projects to its portfolio in FY20 including the Lakadia-Vadodara Transmission Project Ltd. (LVTPL) which is part of India’s Green Energy Corridor (GEC). The firm had also commissioned its first project in Brazil (Arcoverde) 28 months ahead of schedule, which was designed to evacuate renewable wind energy.

During the FY, the firm has realised additional liquidity of Rs 2450 crore from the monetisation of three projects in India (NRSS 29, OGPTL and ENICL) and three projects in Brazil (Pampa, Arcoverde and Nova Estado).

Pratik Agarwal, Managing Director, Sterlite Power, said, “we are driven by our core purpose to enable access to reliable power while minimizing the impact on climate change. As the world makes rapid transition towards clean energy, and India targets 450 GW of renewable energy by 2030, we will contribute towards this noble cause by creating the required transmission infrastructure so that green energy can reach the most underserved households.”

The firm currently has projects of over 13,700 circuit km and 26,100 MVA in India and Brazil. 

Recently, we had reported that the firm had raised Rs 200 crore in debt financing from Allianz Global Investors (Allianz GI) – a leading investment managers firm with a focus on sustainable investments. Which is one of the first infrastructure sector financing deals for Allianz GI in India.

Prior to that, the firm had announced an equal partnership with global investment manager AMP Capital, to develop greenfield power transmission projects in India. The two firms will invest USD 150 Million each in the development of four transmission projects. The two have put in place a debt financing facility, which represents a total capital outlay of around USD 1 billion.