Dear Shareholders,
Past years have been a test in no uncertain terms, Tough enough to test our mettle,
Tough enough to make us stretch and keep us nimble footed and definitely tough enough to
help us emerge tougher. With the Indian economy resuming the path of resurgence, the power
sector reeled under several foundational issues. The overcapacity in the power generation
sector built pre-2014 proved a challenge owing to withering demand from manufacturing
sector in the country. This coupled with still high T&D losses, weak financial
condition of state distribution companies and uneven demand supply across regions deferred
order flows and at the same time, further improved the opportunity perception for future
growth. As our Company's founder
Shri S N Bhatnagar often said, silver lining is accentuated during the cloudy days.
2016-17 was one such cloudy year. The company's financial performance bore the brunt of
high debt accumulated on account of capacity expansion as well as inorganic growth
initiatives undertaken.
We remain confident that the country's power infrastructure sector is set for an
accelerated growth especially in the transmission and distribution segment. With the
present government going all out to promote the country as a global manufacturing hub, the
uninterrupted availability of quality power will be the key to its success. The power
ministry's move to infuse clarity on generation resources will lead to responsible
execution.
Indian power sector is now evolving and opening up to newer products and sustainable
offerings. Government's thrust on smart cities, smart grids as well as ecologically
sustainable sources is setting a chain of innovation in motion. Our ability to innovate
and customize solutions has enabled us become a partner to various state power
distribution companies and Powergrid to implement using innovative practices.
Be it efficiency management or controlling power theft or products designed to improve
safety parameters we are at the forefront of inspiring positive impact. Moreover, our
foray into global markets is gaining traction with some improvement being achieved with
export orders. We believe that the trend would continue in the coming years as well.
At the end I would like to reiterate, much of the stress in the present system will be
relieved by December 2018. We will not only shape up our finances by controlling debt and
introducing growth capital; but would also help us utilize our capacities with much more
efficiency to improve revenues and profitability. I would like to thank every member of
Team Diamond Power for being in sync with our vision for the company and working towards
it. I would like to thank, all our shareholders, for your trust and your wholehearted
support.
Amit Bhatnagar
Managing Director
From the desk of Jt. Managing Director…
Dear Shareholders,
We are not defined by the opportunities we convert but the challenges we overcome.
2016-17 proved to be a challenging year too like its predecessor. However, sometimes the
best way to respond to any challenge is to focus on one's strengths. While the debt
resolution topped our agendas for the year, we chose not to lose sight of the greater
vision of the company. We are in a capital intensive business and the best way to ensure
sustained growth is by tapping into more orders and executing them more efficiently.
Towards this, we concentrated our efforts on cost controls, quality improvements and
higher efficiency across our units. Small steps conquer long roads. And with each passing
day, we chose to think small and continued to persevere.
The debt woes aside, it was business as usual with us. We continued to win orders. We
continued to improve client experiences. We continued to further improve our value
proposition. We continued to implement technology and automation across our business
units. We continued to eliminate wastage. We continued to strengthen our green quotient.
We continued to do just that unrelenting execution to help us shape up in more than one
ways. The results are visible. Despite our financial challenges, none of our clients have
walked away. Our stakeholders and investors stand beside us together to contribute towards
resolution. Our vendors continue to support us through thick and thin. In the past forty
years, we have always believed that the quality of relationships often define the quality
of business. To that count, we feel proud and humble. We have built strong foundations in
the past four decades and are confident that this phase will not undo the hard work and
determination put in by each and every member of the company. It's just a matter of time.
Dr. Sumit Bhatnagar
Jt. Managing Director