It gives me great pleasure to share with you the highlights of our
Company''s performance during the year 2011-12.
The Company in recent years has expanded its business landscape from
power generation, distribution, transmission and trading to
infrastructure sectors such as roads, metros, airports and has made
large investments in these areas.
I am glad to inform you that the Company is engaged in developing two
metro rail projects in Mumbai and is already operating the Airport
Metro Express in Delhi; It has been awarded
II road projects with total length of 1,000 kms; is maintaining five
airports in Maharashtra and is developing two cement plants of five
million tons each in Maharashtra and Madhya Pradesh. I am sure, the
progress being achieved by your Company would bring in vibrancy and
growth in the infrastructure sector and contribute in the growth of the
I am happy to share with you the highlights of our financial and
operational performance during the year 2011-12
- Totallncome of Rs. 18,615 crore (US$ 3.7 billion), as against Rs. 10,210
crore in the previous financial year.
- Cash Profit of Rs. 2,619 crore (US$ 515 million) against Rs. 1,336
crore in the previous financial year.
- Net Profit of Rs. 2,000 crore (US$ 393.1 7 million) against Rs. 1,081
crore in the previous financial year
- Cash Earnings Per Share for the year of Rs. 99 (US$ 1.9) against Rs. 53
in the previous financial year.
- Earnings Per Share (EPS) of Rs. 76 (US$ 1.5) against Rs. 43 in the
previous financial year.
With a net worth of about Rs. 18,541 crore (US$ 3.6 billion), Reliance
Infrastructure ranks among the top performing Indian private sector
companies in the country.
Our group revenues stand at about Rs. 35,570 crore (US$ 7 billion), while
our gross fixed assets amount to Rs. 29,830 crore (US$ 5.9 billion).
Buy-back of shares
The Company by declaring a buy-back programme during the last year, has
ensured that each of your share becomes more valuable and represents a
greater percentage of equity in the company. This is in keeping with
our overriding philosophy of creating value for our shareholders. The
Company bought-back 44,30,262 equity shares of an aggregate value of Rs.
234.88 crore representing 1.66 per cent of the pre buy-back paid up
equity shares at an average price of Rs. 528.91 per equity share.
Power generation, transmission and distribution Power Generation
Dahanu Thermal Power Station (DTPS) achieved Plant Load Factor (PLF) of
more than 100 per cent, The power plant has been operating with a PLF
of more than 100 per cent consecutively for the last six years and
achieved this unique distinction eight times in overall, since
inception. The Dahanu Thermal Power Station has emerged as the
country''s best thermal power plant with respect to various operating
plant parameters such as PLF, availability, heat rate and auxiliary
power consumption. All the power stations, viz. DTPS, Samalkot Power
Station and Goa Power Station continue to pursue various six sigma
quality initiatives for continual improvement.
I am glad to inform you that six transmission lines associated with the
Western Region System Strengthening Project with a cumulative length of
about 1,450 ckt kms out of the total length of 3,000 ckt kms have been
commissioned so far and are being successfully operated by Reliance
Power Transmission Limited (RPTL). With the commissioning of these
lines, RPTL has become the first ever private transmission licensee to
build, own and operate the interstate transmission lines in the
country. RPTL has made significant progress on the remaining lines of
the project and they are expected to be commissioned during the
financial year 2012-13.
Engineering activities for the Parbati Koldam Transmission Line project
being executed in joint venture with Power Grid Corporation of India
Limited have been completed. Significant progress has been made in
implementing the project and the project is scheduled to be
commissioned by the end of 2012- 13.
The Company incurred capital expenditure of Rs. 324 crore during 2011-12
for strengthening and augmenting the transmission network in Mumbai.
The Company has been granted a transmission licence in Mumbai
distribution area for a period of 25 years with effect from August 16,
Maharashtra Electricity Regulatory Commission (MERC), being satisfied
with the power procurement plan and the management and technical
expertise of the Company granted a fresh distribution licence for the
Company for a period of 25 years from August 16, 2011. The
observations made by the MERC is a testimony to the Company''s inherent
strength and its track record of serving millions of industrial,
commercial and residential consumers in Mumbai, benchmarked to
international standards of quality, operational performance, efficiency
and customer care.
The Company achieved the distinction of consistently operating its
distribution network at 99.98 per cent availability in Mumbai. The
Company, through customer centric initiatives has been providing
best-in-class services to its customers in the areas of billing,
metering, payment mode, access to billing information, speedy redressal
of grievances and energy audit service to its consumers. The Company
continues to focus on system loss through a variety of technical and
physical means and has one of the lowest system losses in the country.
The Delhi distribution companies, viz. BSES Rajdhani Power Limited
(BRPL) and BSES Yamuna Power Limited (BYPL) are implementing a series
of measures to improve customer service, and to reduce aggregate
technical and commercial (AT&C) losses so as to achieve enhanced
customer satisfaction. The AT&C losses have declined to 17.81 per cent
in BRPL and 17.84 per cent in BYPL which were as high as at 51 percent
in BRPL and 63 per cent in BYPL when these Discoms were taken over in
2002-03. The reliability index too had gone up from a common average of
about 88.00 to 99.85 in BRPL and 99.91 in BYPL.
Reliance Energy Trading Limited (RETL), the trading arm of the Company,
is a professional member of power exchanges with a significant market
share of exchanged traded volume. RETL apart from being engaged in
trading of power from captive/ independent power plants is also
targeting industrial/open- access consumers in several States as also
exploring options in trading of renewable energy.
The EPC Business
The Engineering, Procurement and Construction (EPC) Division has
achieved a turnover of Rs. 11,689 crore during the year. It has a robust
order book position of Rs. 17,280 crore as of March 31, 2012. The
Division over the years has emerged as from being a limited work
execution provider to a total solution provider in the Indian power
sector. The Division''s excellent engineering capabilities and
integrated project management and control system have been contributing
significantly to achieve faster project implementation at optimum cost
and better quality.
The Company through its special purpose vehicles has been developing 1
1 road projects with capital outlay of about Rs. 12,000 crore of which
five projects have commenced generating revenues and additional six
projects would start generating revenue shortly. The company continues
to explore opportunities in the road sector by shortlisting 21 projects
worth Rs. 40,000 crore for bidding.
The Company has developed the Enterprise Road Business Management
system (ERMS) which is a bundled package comprising of real time toll
monitoring, accident reporting, enterprise reporting, environment and
operation and maintenance aspects of business.
Delhi Airport Metro Express Line was commissioned within a record time
of 27 months from the date of signing of the concession agreement,
reducing travel time to airport to mere 18 minutes. The Line provides
unique services to the customers, viz. check-in for both domestic and
international travellers, integrating baggage handling with the system
at the airport for seamless transfer of luggage.
The Mumbai Metro I Versova-Andheri-Ghatkopar Mass Rapid Transit System
(MRTS) has been making steady progress and is scheduled to be
commissioned ahead of the contractual commissioning date. The line will
result in reduced travel time from 120 minutes to about 20 minutes
along with improved travelling experience.
Reliance Cement Company Private Limited (RCCPL), subsidiary of the
Company, has achieved certain milestones towards setting up two plants,
one in Maihar, Madhya Pradesh and the other in Mukutban, Maharashtra.
The construction of the satellite grinding unit at Butibori (Nagpur),
linked to the Mukutban Project is nearing completion and is expected to
commence commercial production in the later half of the current year.
In line with RCCPL''s vision to set up cement projects across India, it
has applied for mining leases/prospecting licenses in various parts of
RInfra has always maintained the best governance standards and
practices by adopting, as is the norm for all constituent companies of
the Group, the Reliance Group-Corporate Governance Policies and Code
of Conduct. These Policies and Code prescribe a set of systems,
processes and principles, which conform to the highest international
standards and are reviewed periodically to ensure their continued
relevance, effectiveness and responsiveness to the needs of investors,
both local and global, and all other stakeholders.
The Company places high importance to the development of the community
in and around our areas of businesses. The primary focus of social
welfare and community development measures is on health care and
education. We are committed to improving the quality of life in the
communities in which we operate and to contributing to the overall well
being of under privileged citizens.
Awards and Recognitions
It is a matter of pride that our company continues to receive numerous
awards in recognition of its outstanding performance in various fields.
This is in recognition of the passion for quality and excellence
exhibited by various Divisions of the Company. These accolades cover a
wide gamut of specific areas including environmental management, energy
conservation, water management, safety record, pollution control,
quality leadership and corporate social responsibility.
Our vision is continued growth and improved operational efficiency. Our
founder, the legendary Shri Dhirubhai Ambani, gave us a simple mantra;
to aspire to the highest global standards of quality, efficiency,
operational performance and customer care. We remain committed to
upholding that vision. Dhirubhai exhorted us to think big. With your
continued support, we will think bigger. Indeed not just bigger but
better, creating ever greater value for all our stakeholders.
Anil Dhirubhai Ambani