Sterling And Wilson Renewable Energy Limited · NSE:SWSOLAR
Sterling And Wilson Renewable Energy — Sterling and Wilson Solar — Q3 FY20 Earnings Presentation
19 slides from Sterling And Wilson Renewable Energy's earnings presentation, Feb 12, 2020
Slide 1: Investor presentation filing letter to BSE and NSE
STERLING & WILSON� � February 12, 2020 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Bandra Kurla Complex Mumbai-400 001 Bandra (East), Mumbai-400 051 Scrip Code: 542760 Symbol: SWSOLAR Sub.: Investor presentation on the Unaudited Consolid
Slide 2: Analyst Presentation – Q3 & 9M FY20
STERLING AND WILSON SOLAR LIMITED Analyst Presentation – Q3 & 9M FY20 Noor Abu Dhabi - World’s Largest Single Location Solar Project 12th February 2020
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sterling and Wilson Solar Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Contents
Contents 1 Key Highlights 3 2 Order Book 6 3 Financials 8 4 Impact of Coronavirus on projects execution 15 5 Way Forward 16 2
Slide 5: Key Order Book Highlights
Key Order Book Highlights Healthy order inflow and robust order book ✓ Order inflow of 2.2 GW (Rs 85,507mn) until 12 Feb 2020 ✓ 7.4 GW contracted O&M as at 12 Feb 2020 ✓ Gross Unexecuted Order Value (UOV) as on 12 Feb 2020 is above Rs 129,000 mn compared to over Rs 77,000 mn as at 31 Mar 2019 UOV (R
Slide 6: Key Financial Highlights for 9mFY20
Key Financial Highlights for 9mFY20 ✓ Revenue impacted due to delay in commencement of few projects ✓ O&M contribution to overall revenue increased to 3.7% in 9mFY20 vs 1% in 9mFY19 ✓ Gross margins at 13.1% compared to 9.3% in 9mFY19 ✓ Higher EBITDA margins at 6.7% in 9mFY20 compared to 5.9% in 9mFY
Slide 7: Significant geographic diversification over the years
Significant geographic diversification over the years 19 5 Projects 17 Projects 3 Projects Projects 3 Countries 10 Countries 2 Countries 10 Countries EPC + O&M Revenue break-up by geography over the years SEA FY16 FY17 SEA FY18 FY19 9mFY20 Australia 13.1% 0.2% India 1.3% Africa India 0.4% 30.3% 40.9
Slide 8: Order Inflow – Apr to 12 Feb 2020
Order Inflow – Apr to 12 Feb 2020 Country MW Rs mn UPTO SEPT 2019 (a) 105 8,280 Oct 2019 to Dec 2019 India 50 1,850 Kingdom of Saudi Arabia 1090 44,450 Chile 122 6,720 Australia 344 17,500 Oct 2019 to Dec 2019 (b) 1,606 70,520 Jan 2020 onwards India (c) 478 6,707 TOTAL (a+b+c) 2,189 85,507 India Eur
Slide 9: Unexecuted Order Value (UOV) Movement
Unexecuted Order Value (UOV) Movement Rs mn Gross UOV as at 12 Feb 2020 (before adjusting revenue post 31 Dec 2019) India Europe 9.9% Africa [EPC Revenue] 13.3% 6.6% +78,800 -33,788 Australia 13.2% +6,707 Rs 129,170* mn 1,29,116 1,22,409 MENA 39.2% Americas 17.8% 77,397 UOV as on 31 New Orders Proje
Slide 10: Consolidated Financial Highlights – 9mFY20
Consolidated Financial Highlights – 9mFY20 Rs mn Revenue from Operations Gross margins & Gross Margin % Operating EBITDA & EBITDA Margin % 13.1% 9.3% 6.7% 5.9% 59,151 5,526 3,510 4,618 2,372 35,147 9MFY20 9MFY19 9MFY20 9MFY19 9MFY20 9MFY19 PBT & PBT Margin Cash flow from Operations Net Working Capit
Slide 11: O&M Business – Key Highlights
O&M Business – Key Highlights Rs mn Revenue from O&M Operations Key Highlights O&M revenue more than doubled in GW of solar power 9mFY20 compared to corresponding period in previous year 7.4 projects with active 1,317 service contracts O&M constitutes 3.7% of revenue in 9mFY20 compared to 1% in
Slide 12: Consolidated Profit & Loss – Q3 and 9m
Consolidated Profit & Loss – Q3 and 9m Rs mn Q3FY20 Q3FY19 9MFY20 9MFY19 FY19 Key Highlights Revenue from Operations 10,764 16,440 35,147 59,151 82,404 Overall revenue lower due to delay in commencement of a large project coupled Gross Margin 836 2,864 4,618 5,526 9,850 with higher revenue in prev
Slide 13: Consolidated Balance Sheet
Consolidated Balance Sheet Rs mn Dec 19 Mar 19 Dec 18 Key Highlights Assets Business continues to remain asset light Non current assets 789 672 581 Tangible assets (incl. CWIP) 334 265 261 Borrowings decreased by Rs 7,507 mn due to repayment of loan Intangible assets 54 49 50 Deferred tax assets
Slide 14: Consolidated Cashflow
Consolidated Cashflow Rs mn 9MFY20 9MFY19 FY19 Key Highlights Profit before tax 2,394 4,182 7,592 Cash flow from Operations has been positive for 9mFY20 as Adjustments for noncash / other items 707 (469) (434) compared to 9mFY19 and FY19 Operating profit before working capital changes 3,101 3,713
Slide 15: Core Working Capital
Core Working Capital Rs mn Dec 19 Sep 19 Mar 19 Key Highlights Working capital remained stable as compared to Mar 19 Current Assets 26,466 24,227 23,770 Debtor days higher due to lower 9mFY20 revenue Inventories 107 170 131 Trade receivables (Incl. 24,377 22,798 22,507 Unbilled) Receivable days
Slide 16: External Debt and Intercompany Deposit movement post listing
External Debt and Intercompany Deposit movement post listing External Debt Intercompany Deposit (ICDs) Rs mn Note: the above table excludes interest • External debt reduced by Rs 13,400 mn from the date of listing till 31st • Repayment schedule for ICDs December 2019 • Rs. 5,000 mn on or before Marc
Slide 17: Coronavirus impacting execution of projects
Coronavirus impacting execution of projects ✓ Several cities of China are on lockdown due to coronavirus ✓ Production activities stopped and expected to commence by end of Feb 2020 ✓ Raw material scarcity estimated in China ✓ Inspection by agencies not being possible ✓ Port congestions both inbound
Slide 18: Way Forward
Way Forward ✓ Execute the projects at faster pace once operations are normalised in China ✓ Strong order pipeline including bids pending decision ✓ Diversification into newer markets like Far East and additional countries in South America and Europe ✓ Improved O&M strategy under implementation for t
Slide 19: Thank You
THANK YOU For further information, please contact: Company : Investor Relations Advisors : Sterling and Wilson Solar Limited Strategic Growth Advisors Private Limited CIN: U74999MH2017PLC292281 CIN: U74140MH2010PTC204285 Mr Vishal Jain Mr Jigar Kavaiya / Mr. Parin Narichania Head – Investor Relation
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