Orient Green Power Company Ltd · NSE:GREENPOWER
Orient Green Power — Investor Presentation
27 slides from Orient Green Power's investor presentation
Slide 1: Leading Renewable Energy Generation Company
Leading Renewable Energy Generation Company
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties
Slide 3: Index
Index Transformation Strategy & Operational Progress Key Developments: FY18 Financial Highlights Operational 4 Outlook & Highlights Regulatory Appendix: ` Overview Financial 13 Statements 15 19 21 26 3
Slide 4: Transformation Strategy & Operational Progress
Transformation Strategy & Operational Progress
Slide 5: OGPL Transformation
OGPL Transformation Phase IV • Focus on optimising performance of Wind business Accelerated Growth and aiming for leadership in renewable • Sale of Biomass business – removal of drag on business performance (FY18 onward) • Transfer of Biomass Debt – reduction in Interest costs energy sector in India
Slide 6: High Potential disrupted by external factors
High Potential disrupted by external factors Rs. in Cr Wind Business OGPL Consolidated 2017-18 2016-17 2015-16 2017-18 2016-17 2015-16 Turnover 384 385 305 433 461 402 EBITDA 307 309 230 302 293 213 Depreciation 124 136 136 136 169 207 Finance Cost 178 199 205 235 267 277 PBT 5 (26) (111) (69) (143)
Slide 7: Turnaround in performance underway
Turnaround in performance underway Improvement in grid evacuation level Sustained grid availability in recent quarters Increased frequency bandwidth for Grid Availability (%) renewables 94.0 96.0 95.0 95.0 93.9 97.4 81.8 77.2 Phase-wise shutting down of thermal power plants during the wind seaso
Slide 8: Supported by Improvement in REC Mechanism
Supported by Improvement in REC Mechanism REC’s Outstanding in thousands • Sharp increase in RECs traded in FY17 & FY18 on stricter 494 516 implementation 420 • REC Trading volumes on energy exchanges set new records in FY18 • 100% realization of REC stocks 0 FY15 FY16 FY17 FY18 Traded REC Revenue I
Slide 9: Focus on Debt Reduction
Focus on Debt Reduction Debt (Rs. Cr) Interest Expense (Rs. Cr) 2,159 2,104 1,978 1,887 265 286 278 267 1,571 235 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Interest / Revenue (%) EBITDA / Interest (x) 70% 64% 60% 61% 58% 1.28 1.10 0.81 0.84 0.77 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 F
Slide 10: Resulting in Improved Profitability
Resulting in Improved Profitability EBITDA (Rs. Cr) EBIT (Rs. Cr) 179 293 302 165 243 232 124 215 72 8 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 PAT (Rs. Cr) Cash Profit (Rs. Cr) FY14 FY15 FY16 FY17 FY18 (71) 67 (96) 25 (188) (233) FY14 FY15 FY16 FY17 FY18 (340) (50) (47) (63) 10
Slide 11: Green shoots – on the back of strategic and structural initiatives
Green shoots – on the back of strategic and structural initiatives Growth Improving macros in terms of improved grid availability in TN (308 Mw out of total portfolio of 425 Mw) – conducive frequency of grid back down has reduced substantially and consistent grid availability is expected to sustai
Slide 12: Key Developments: FY18
Or Key Developments: FY18
Slide 13: Key Developments – FY18
Key Developments – FY18 Turnaround & Performance improvement Successful execution of strategic and operational initiatives resulted in delivering improved financials Strong performance of Wind business coupled with improved efficiencies resulted in EBITDA growth of 3% Wind Business – Maintaining
Slide 14: Financial Highlights
Financial Highlights
Slide 15: FY18 Financial Performance
FY18 Financial Performance In Rs. Mn Wind Biomass TOTAL FY18 FY17 % FY18 FY17 % FY18 FY17 % REVENUES 3,938.7 3,836.5 3 393.6 777.4 (49) 4,331.3 4,613.9 (6) EBITDA 3,023.3 2,916.5 4 (1.1) 13.9 - 3,022.2 2,930.4 3 EBITDA% 77% 76% - 2% - 70% 64% EBIT 1,787.3 1,553 15 (131.4) (308.7) - 1,655.9 1,244.3 3
Slide 16: Q4 FY18 Financial Performance
Q4 FY18 Financial Performance In Rs. Mn Wind Biomass TOTAL Q4 FY18 Q4 FY17 % Q4 FY18 Q4 FY17 % Q4 FY18 Q4 FY17 % REVENUES 381.7 567.1 (33) 57.9 191.0 (70) 439.6 757.1 (42) EBITDA 185.5 273.3 (32) -28.4 (57.0) 50 157.1 216.3 27 EBITDA% 49% 49% -49% -30% 36% 29% EBIT (109.7) (89.9) (22) (35.9) (135.1)
Slide 17: Key Financial Highlights – FY18
Key Financial Highlights – FY18 Wind Business: Growth momentum maintained; positive outlook on the back of supportive macros Revenue for FY18 grew by 3% to Rs. 3,937 mn compared to Rs. 3,836 mn; EBITDA improved to Rs. 3,023 mn from Rs. 2,916 mn during the corresponding period last year Expect bu
Slide 18: Operational Highlights
Or Operational Highlights
Slide 19: Wind Operations
Wind Operations Unit of Particulars FY18 FY17 State Capacity (MW) Measurement Capacity (incl. overseas capacity) Mw 425 425 Tamil Nadu 308.3 Andhra Pradesh 75.40 Units Generated (Gross) Mn 738 735 Gujarat 29.2 Annualized PLF % 20 20 Karnataka 1.25 Average Gross Realisation (before Europe 10.5 Rs./ U
Slide 20: Outlook & Regulatory Overview
Outlook & Regulatory Overview
Slide 21: Outlook - Wind
Outlook - Wind Improving Fundamentals – Structurally positive – Improving grid infrastructure, a structurally positive development for the industry and business aiding greater transmission of power from generating unit to grid for distribution – Improving operating environment coupled with support
Slide 22: Outlook - Biomass
Outlook - Biomass Completed sale of 8 biomass units to Janati Bio Power Pvt. Ltd, subsidiary of promoter - SVL – Completed sale of 8 biomass units to Janati Bio Power Pvt. Ltd. (subsidiary of its promoter – SVL Ltd.) on December 31, 2017 for an equity consideration of Rs. 80 crore – Completed sale
Slide 23: Renewable Energy Certificates
Renewable Energy Certificates Trading volumes remained high during the quarter on the back of strong demand and regulatory pressure The period saw total demand REC exceeding the available supply, first time since 2012. March’s trading session also witnessed 100% clearances on both the power exch
Slide 24: Regulatory & Market Developments
Regulatory & Market Developments Telangana State Electricity Regulatory Commission (TSERC) releases its maiden draft RPO policy. The state used to follow RPO percentages determined by APERC (Andhra Pradesh Electricity Regulatory Commission) prior to the policy Year Total RPO (%) 2018-19 6.0 2019-2
Slide 25: Appendix: Financial Statements
Appendix: Financial Statements
Slide 26: Financial Performance – FY18 (Consolidated – IND-AS)
Financial Performance – FY18 (Consolidated – IND-AS) Rs. Million FY18 FY17 Y-o-Y (%) Sale of Power 3,496.50 3,993.40 (12) Other Operating Income 372.10 490.30 (24) Total Income 3,868.60 4,483.70 (14) Expenditure Cost of biomass fuel 172.20 349.30 (51) O&M and other costs 1,137.00 1,334.20 (15) Total
Slide 27: For further information please contact
For further information please contact Mr. K.V. Kasturi Orient Green Power Company Limited Tel: +91 44 4901 5678 Email: kasturi.kv@orientgreenpower.com Mayank Vaswani / Suraj Digawalekar CDR India Tel: +91 22 6645 1230 / 1219 Email: mayank@cdr-india.com suraj@cdr-india.com