Suzlon Energy Ltd · NSE:SUZLON
Suzlon Energy — Q3 FY20 Earnings Presentation
28 slides from Suzlon Energy's earnings presentation, Feb 12, 2020
Slide 1: Suzlon Energy Limited Investor Presentation Q3 FY20
Suzlon Energy Limited Investor Presentation Q3 FY20 12 February 2020
Slide 2: Disclaimer
Disclaimer • This presentation and the accompanying slides (the “Presentation”), which have been prepared by Suzlon Energy Limited (the “Company”), have been prepared solely for information purposes and DOES not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 3: Milestones Achieved
Milestones Achieved Cumulative Market Largest fleet under Annual Market Share Share* maintenance* of (FY19) ~35% 12.5 GW in India ~39% Market leadership 2nd largest O&M Market share gains for maintained for over two Company in India Power 4th consecutive year decades Sector 3 Despite competitive mar
Slide 4: FY20 & Onwards: Volume Visibility in India
FY20 & Onwards: Volume Visibility in India Visibility for next two years – For India Wind Market ~5 GW ~3 GW ~1.5 GW FY19 FY20e FY21e Challenges Resolution Evacuation approvals granted most of the auctioned capacity Delays in evacuation approvals PGCIL working on creation of evacuation infrastructur
Slide 5: Financial Performance Debt Overview Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 5
Slide 6: Q3 FY20 Financial Metrics
Q3 FY20 Financial Metrics (₹ Cr.) Q3 FY20 Q3 FY19 Particulars Remarks Unaudited Unaudited Net Volumes (MW) 2 67 Net Revenue 654 1,091 Primarily due to low volume Gross Profit 270 484 Primarily due to revenue mix and provisions Gross Margin 41.2% 44.3% Employee Expenses 187 219 Other Expenses (net) 1
Slide 7: 9M FY20 Financial Metrics
9M FY20 Financial Metrics (₹ Cr.) 9M FY20 9M FY19 Particulars Remarks Unaudited Unaudited Net Volumes (MW) 49 349 Net Revenue 2,290 3,557 Primarily due to low volume Gross Profit 840 1,512 Primarily due to revenue mix and provisions Gross Margin 36.7% 42.5% Employee Expenses 604 625 Other Expenses (
Slide 8: Stable Service Revenue Insulated From Business Cycles
Stable Service Revenue Insulated From Business Cycles Operations and Maintenance Revenues (₹ Cr.) ~15 GW of Assets under Management (AUM) ― 12.5+ GW in India; ~3 GW Overseas 59 ― 2nd Largest O&M player in India Power Sector, 89 after NTPC Nearly 100% renewal track record in India 1,448 ― Almost
Slide 9: Order Backlog
Order Backlog Particulars Capacity* Remarks Central Auctions 790 MW All orders backed by signed PPA’s State Auctions 57 MW Retail, Captive, PSU & IPP 10 MW Not dependent on PPAs Wind Firm Order Book 857 MW Value of Order Book ₹ 4,399 Cr. SEFL and Service orders over and above this order book 1. Duri
Slide 10: Financial Performance Debt Overview Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 10
Slide 11: Debt Profile
Debt Profile 31st Dec’19 30th Sep’19 Rupee Debt (including SBLC back Loans) ₹ 11,463 Cr. ₹ 10,937 Cr. US$ 172 M US$ 172 M FCCB (₹ 1,263 Crs.) (₹ 1,254 Crs.) US$ 50 M US$ 52 M Other FX Term Debt (₹ 357 Crs.) (₹ 369 Crs.) Gross Debt (Fund based) ₹ 13,083 Cr. ₹ 12,560 Cr. Net Debt (Fund based) ₹ 12,906
Slide 12: Debt Resolution Plan
Debt Resolution Plan Debt Resolution Plan In Progress Key Considerations: Steps Taken: Continues to work on resolution of Lenders* have entered Intercreditor Agreement (ICA) unsustainable debt levels under the Reserve Bank of India (Prudential Framework for resolution of stressed assets) Directi
Slide 13: Financial Performance Debt Overview Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 13
Slide 14: Strong Visibility On Growth For India Wind Market
Strong Visibility On Growth For India Wind Market Feed-in-Tariff + Captive / PSU / Retail Auction + Captive / PSU / Retail Commissioned till FY18 Estimated Commissioning by FY21 (GW) 5.5 ~5.0 3.4 ~3.0 1.8 1.5 FY16 FY17 FY18 FY19 FY20e FY21e Source: MNRE Source: Internal Estimates Key Challenges face
Slide 15: Tariffs are firming up since early Wind auctions in India
Tariffs are firming up since early Wind auctions in India Wind Auction Tariffs (Rs/Unit) MNRE 3.47 3.42 proposed removal of 2.95 2.93 tariff cap 2.85 2.82 2.83 2.84 for future 2.77 2.77 2.65 auctions 2.51 2.43 2.44 SECI 1 TN Bid SECI 2 GJ Bid SECI 3 MH Bid SECI 4 NTPC SECI 5 SECI 6 GJ-2 SECI 7 SECI
Slide 16: Financial Performance Debt Overview Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 16
Slide 17: Products optimized for market demands
Products optimized for market demands S111-140 S120-140 S128/S133-140 2.1 MW 2.1 MW 2.6 – 2.8 MW India’s Tallest Wind Turbine India’s Largest 2.1 MW Turbine India’s Largest Rotor Diameter (Grown to S133) Proto Commissioned Aug’17 Proto Status Date Proto Status Date S128-105 Commissioned Jan ’18 S120
Slide 18: Product Developments
Product Developments S128: New Products SB 63 – Won SKOCH award for Corporate Excellence RLMM Listing completed All Testing & Measurement completed S128 – 140 HLT S128 – 105 TT Multiple Tower Options (Hybrid Lattice, Steel Tubular) 18 Enables us to reach untapped wind sites in challenging terr
Slide 19: Financial Performance Debt Overview Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 19
Slide 20: Suzlon Strengths In India Wind Market
Suzlon Strengths In India Wind Market Full Turnkey Solution Pan India Presence Provider Technology Leadership Strong Customer Relationship Best In Class Service 24+ Years Track Record Capabilities 20 End-to-end service provider with strong presence across value chain & customer segments
Slide 21: Accolades
Accolades • World’s 1st solar project quality certification for Suzlon’s 100 MW project • DNV GL confirms safety features and technical compliance • Testament of our commitment to high quality standards • Coimbatore Generator Unit wins CII Southern Region 13th Kaizen Competition • For uniform profil
Slide 22: 12.5 GW Wind Energy Installations In India
12.5 GW Wind Energy Installations In India Ranked No. 1 in Renewables Sector Largest fleet under Operation and Maintenance fold in India Ranked No. 2 in Power Sector (31st Mar’19) # of Turbines MW <= 1 MW 1,678 777 >1 MW < 2 MW 4,268 5,774 =>2 MW 2,834 5,950 Total 8,780 12,501 2.0 GW • 35% - All Ind
Slide 23: Suzlon's Global Presence
Suzlon’s Global Presence As on 31st Mar 2019 2 5 2 1 North 6 America 3 1 2,779 MW 4 Asia 3 5 13,462 MW South America Europe 806 MW 508 MW 4 South Australia Africa 764 MW 139 MW 6 23 Suzlon’s strong relationships across regions positions it well Map not to scale. All data, information, and map is pro
Slide 24: Financial Performance Debt Overview Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 24
Slide 25: Consolidated Income Statement
Consolidated Income Statement (₹ Cr.) Q3 FY20 Q2 FY20 Q3 FY19 FY19 Particulars Unaudited Unaudited Unaudited Audited Revenue from operations 654 803 1,091 4,978 Less: COGS 384 670 607 2,998 Gross Profit 270 133 484 1,980 Margin % 41.2% 16.6% 44.3% 39.8% Employee benefits expense 187 209 219 874 Othe
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ Cr.) Liabilities Dec-19 Mar-19 Assets Dec-19 Mar-19 Shareholders' Fund -10,266 -8,498 Non Current Assets Non controlling interest -45 -5 Property, plant and equipment 960 1,147 -10,311 -8,503 Right-of-use assets 156 0 Capital work-in-progress 144 218 Investment property
Slide 27: Consolidated Net Working Capital
Consolidated Net Working Capital (₹ Cr.) 31-Dec-19 30-Sep-19 30-Jun-19 Inventories 2,204 2,357 2,775 Trade receivables 1,458 1,728 1,741 Loans & Advances and Others 1,587 1,676 1,684 Total (A) 5,249 5,761 6,200 Sundry Creditors 1,295 1,394 1,757 Advances from Customers 328 1,005 1,041 Provisions and
Slide 28: Thank You
CIN of Suzlon Energy Ltd - L40100GJ1995PLC025447 THANK YOU 28