Inox Wind Ltd. · NSE:INOXWIND
Inox Wind — Q4 FY2017 Earnings Presentation
26 slides from Inox Wind's earnings presentation, May 2017
Slide 1: Inox Wind Limited Q4FY17 and FY17 Investor Update
INOX WIND LIMITED Q4FY17 and FY17 INVESTOR UPDATE
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Inox Wind Limited (“IWL” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future state of affairs, results of operation
Slide 3: Discussion Summary
DISCUSSION SUMMARY FINANCIAL RESULTS HIGHLIGHTS OPERATIONAL HIGHLIGHTS RESULT ANALYSIS SALES AND COMMMISSIOING COST ANALYSIS WORKING CAPITAL CASH FLOW ANALYSIS ORDER BOOK O&M – ANNUITY BUSINESS MANUFACTURING CAPACITY PROJECT SITES SHAREHOLDING STRUCTURE DETAILED FINANCIALS
Slide 4: Financial Results Highlights
FINANCIAL RESULTS HIGHLIGHTS 4
Slide 5: Operational Highlights
OPERATIONAL HIGHLIGHTS 1st tranche of SECI wind auction of 1GW completed Inox Wind wins 250MW by becoming the lowest bidder at Rs3.46 per unit Another 50MW already tied up with a winning IPP In active negotiations for additional 250MW with another winning IPP. Achieved highest ever commiss
Slide 6: Result Analysis
RESULT ANALYSIS Q4 FY17 YoY ANALYSIS REVENUES EBITDA (Incl. OI) & EBITDA MARGIN (%) EBITDA & EBITDA MARGIN (%) PAT & PAT MARGIN (%) 1,840.2 330.3 23.9% 201.1 312.4 22.5% 243.8 1,019.2 12.4% 229.5 17.9% 127.0 10.9% 17.0% Q4 FY16 Q4 FY17 Q4 FY16 Q4 FY17 Q4FY16 Q4FY17 Q4 FY16 Q4 FY17 EBIDTA EBIDTA % PA
Slide 7: Sales & Commissioning
SALES & COMMISSIONING FY16 (MW) FY17 (MW) Q4 FY16 (MW) Q4 FY17 (MW) 826 422 756 776 786 402 652 636 656 328 296 522 256 170 144 94 Nacelles & Hubs Blades Towers Commissioning Nacelles & Hubs Blades Towers Commissioning Achieved highest ever commissioning of 422MW in a quarter, Annual commissioni
Slide 8: Cost Analysis
COST ANALYSIS Q4 FY16 Q4 FY17 FY16 FY17 16.0% 17.0% 22.5% 15.4% 15.9% 16.4% 3.8% 3.1% 3.0% 6.9% 2.6% 7.0% 3.1% 2.2% 77.2% 77.3% 68.3% 73.6% Q4 FY17 FY16 Q4 FY16 FY17 Raw Material and EPC Cost Variable Cost Fixed Cost EBITDA Margin Continues to show improvement in raw material cost Fixed cost cou
Slide 9: Working Capital Analysis
WORKING CAPITAL ANALYSIS MARCH 2016 DECEMBER 2016 MARCH 2017 40 105 81 146 146 148 280 122 30 206 1 82 185 153 29 Receivables Inventory Payables Others Net Working Receivables Inventory Payables Others Net Working Receivables Inventory Payables Others Net Working Days Days Days Capital Days Days Day
Slide 10: Cash Flow Analysis
CASH FLOW ANALYSIS Q4 2017 FY 2016 FY 2017 Opening Net debt (946) (5) (641) Cash Profit 138 487 347 Gross working capital 159 (617) (163) Capex (200) (411) (352) Others 70 (94) 30 Closing Net debt (779) (641) (779) (In Rs Cr) Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Net Debt 641 1,225 890 946 779 Net Debt
Slide 11: Order Book
ORDER BOOK The industry is under-going a significant change in market dynamics by shifting from the FIT based market to an auction based market Under the new scenario, our conventional order book loses its relevance, since these orders were under an FIT based market regime Going ahead, orders
Slide 12: O&M – Annuity Business
O&M – Annuity Business Inox Wind has an installed wind turbine base of 2.2GW in India with multi year O&M agreements In FY17, O&M revenues are ~3% of our revenues but we expect this revenue stream to pick up strongly in the coming years as the fleet size increases O&M revenues are noncyclical
Slide 13: Manufacturing Capacity
MANUFACTURING CAPACITY CURRENT CAPACITY (MW) Una, Barwani, Rohika, Plant Location Himachal Madhya Total Gujarat Pradesh Pradesh Nacelles & Hubs 1,100 - - 1,100 Blades - 800 800 1,600 Towers - 300 300 600 With doubling of Blade manufacturing capacity to 1,600 MW and enhanced tower manufacturing cap
Slide 14: Project Sites
PROJECT SITES Amongst the largest project site allottees in Gujarat, Rajasthan and Madhya Pradesh Rajasthan Expanded presence in Andhra Pradesh and Gujarat Madhya Pradesh Karnataka and Kerala Maharashtra Sufficient project site inventory as of March 2017 for installation of an aggregate capaci
Slide 15: Shareholding Structure
SHAREHOLDING STRUCTURE 250 Market Data As on 11.05.17 (BSE) Share Price Performance 230 Market capitalization (Rs. Cr) 4,400 210 Price (Rs.) 200 190 170 No. of shares outstanding (Cr) 22 150 Sep/16 Oct/16 Nov/16 Dec/16 Jan/17 Feb/17 Mar/17 Apr/17 Face Value (Rs.) 10.0 Source - BSE Source - BSE % Sha
Slide 16: Detailed Financials: Consolidated P&L Statement
DETAILED FINANCIALS CONSOLIDATED P&L STATEMENT Q4FY17 Q4FY16 YoY Q3FY17 QoQ FY17 FY16 YoY 1 Income (a) Revenue from operations (net of taxes) 101,922 184,018 -45% 116,062 -12% 341,500 445,067 -23% (b) Other income 1,433 1,785 1,444 6,532 6,984 Total Income (a+b) 103,355 185,803 -44% 117,506 -12% 348
Slide 17: Detailed Financials: Consolidated Balance Sheet
DETAILED FINANCIALS CONSOLIDATED BALANCE SHEET Particulars As at As at Particulars As at As at March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 EQUITY AND LIABILITIES Equity Assets (a) Equity Share capital 22,192 22,192 (1 ) Non-current assets (b) Other Equity 196,767 166,491 (a) Property
Slide 18: Financial Summary
FINANCIAL SUMMARY In Rs. Cr Revenue from Operations EBIDTA (Inc OI) & EBIDTA Margin % PAT & PAT Margin % 18.6% 16.9% 17.6% 18.3% 14.2% 4,450.7 8.4% 10.9% 10.3% 8.7% 11.3% 783.2 461.2 3,415.0 625.7 CAGR – 34% 2,709.0 CAGR – 34% CAGR – 21% 456.5 296.4 303.3 1,566.8 1,058.9 196.5 176.3 150.4 132.3 FY13
Slide 19: Industry Section
WIND INDUSTRY SECTION
Slide 20: Winds of Change – Auctions to Replace FIT Regime
WINDS OF CHANGE – AUCTIONS TO REPLACE FIT REGIME IWL WON 250MW AS A DEVELOPER The industry is under-going a significant change in market dynamics by shifting from the FIT based market to an auction based market Under the 1st reverse auction for wind power in India, Inox was the only WTG manufact
Slide 21: Market Outlook – Strong Expansion Ahead
MARKET OUTLOOK – STRONG EXPANSION AHEAD • INDIA’S INSTALLED WIND CAPACITY MARCH 32.2 GW 17* 60GW • TARGET WIND INSTALLATION BY 2022** > 7 GW ANNUAL • ANNUAL ADDITION OF WIND ENERGY PRODUCTION TO DOUBLE ON BACK OF-: ADDITION • CENTRAL AUCTIONS – ~4GW/YEAR EXPECTED IN NEXT • STATE AUCTIONS – ~3GW/YEAR
Slide 22: How Auctions Benefit the Sector
HOW AUCTIONS BENEFIT THE SECTOR LOWER LOWER OTHERS REGULATORY RISK FINANCIAL RISK LOWER COST OF DEBT TO INDUSTRY TO MOVE LONG TERM (~25 YRS) BE AVAILABLE AWAY FROM “4TH PPA SIGNED UPFRONT QUARTER/MARCH” DEPENDENCE HIGHER DURATION LOANS AVAILABLE ASSURANCE OF GRID STABLE SET OF “LONG CONNECTIVITY TO
Slide 23: Why Is Inox Wind a Winner in the Auction Regime?
WHY IS INOX WIND A WINNER IN THE AUCTION REGIME? LARGER MARKET – The overall size of the market is expected to by > 7GW annually LOWER CREDIT RISK – LARGER MARKET SHARE – Payments to come from PTC, Inox could gain market share instead of directly from due to its cost discoms competitiveness HIGHER A
Slide 24: FAQs on Auctions
FAQs ON AUCTIONS Will winning the 250MW bid in the auctions require us to invest / put in equity / make investments? No, we would be entering into back to back arrangement with IPPs who would be investing into the SPV. We would exit the SPV post the commissioning of the project in accordance wit
Slide 25: Technology
TECHNOLOGY Moving towards bigger turbines on the same platform Inox Wind iis in advanced stages of creating Higher Energy Lower Energy Higher Returns Yield Cost the next generation of Wind turbines In advanced stages of launching “Power Booster” technology upgrade leading to 20% enhancing output
Slide 26: Thank You
FOR FURTHER QUERIES : THANK YOU Mr. Atul Soni Head - Investor Relations- Inox Wind Contact No: 0120 6149881 Email : Investors@inoxwind.com 26