Techno Electric & Engineering Company Limited · NSE:TECHNOE
Techno Electric & Engineering — Q3 FY2023 Earnings Presentation
39 slides from Techno Electric & Engineering's earnings presentation, February 2023
Slide 1: An Investor Presentation: Quarter Ended December 2022
AN INVESTOR PRESENTATION Quarter Ended December, 2022
Slide 2: Corporate Overview, Business Segment Review, Financial Review
» Corporate Overview 03 » Business Segment Review 17 » Financial Review 38
Slide 3: Corporate Overview
orate Overview
Slide 4: Powering Value Creation
POWERING VALUE CREATION Techno Electric & Engineering Company Limited (TEECL) is among India’s largest in power-infrastructure companies. It is one of the most attractive proxies of India’s power sector, headquartered in Kolkata. 40+ Years 400+ Projects 25+ Years 400 Professionals of rich experience
Slide 5: Progressing with Confidence
PROGRESSING WITH CONFIDENCE » EPC » Generation » Design to Commissioning » Asset Ownership » Transmission Handover to » Operations and » Distribution Maintenance Maintenance Operation » Industrial Management COMPANY OVERVIEW BUSINESS SEGMENT REVIEW FINANCIAL REVIEW
Slide 6: Progressing with Confidence - Key Milestones
PROGRESSING WITH CONFIDENCE - (Contd.) KEY MILESTONES 1980 2009 2010 2019 2021 2022 Launched Entered Started Initiated Initiated Data EPC services renewable FGD Advanced transmission Centres energy Projects Metering Asset generation Infrastructure Ownership (DBFOT Model) COMPANY OVERVIEW BUSINESS SE
Slide 7: Advancing with Experience and Expertise (EPC)
ADVANCING WITH EXPERIENCE AND EXPERTISE » Flue Gas Desulfurization Plant » Transmission & Distribution » Advanced Metering Infrastructure (Smart Metering) » Balance of plant » Captive waste heat recovery and upto 200 MW of conventional power plant on turnkey basis » Solutions for power-intensive ind
Slide 8: Advancing with Experience and Expertise (Asset Ownership)
ADVANCING WITH EXPERIENCE AND EXPERTISE » Build Own Operate and Transfer (BOOT) » Build Own Operate and Maintain (BOOM) » Provide annuity income » Capital intensive » Modest ROE » Stable multi-year income/cash flow » In-house EPC business » O&M revenues COMPANY OVERVIEW BUSINESS SEGMENT REVIEW FINAN
Slide 9: Advancing with Experience and Expertise (Green Power)
ADVANCING WITH EXPERIENCE AND EXPERTISE » Capital-intensive » Modest IRR » Multi-year stable income/cash flows » Green Power contributes 8% of total revenues and 31% of total EBIDTA of FY22 COMPANY OVERVIEW BUSINESS SEGMENT REVIEW FINANCIAL REVIEW
Slide 10: Advancing with Experience and Expertise (Data Centres)
ADVANCING WITH EXPERIENCE AND EXPERTISE » Develop ultra-scalable hyper-density Data Centres of 250 MW by FY2030 across India » EPC capabilities » Large infrastructure asset development and ownership experience, along with operations and maintenance services » Green power generation capacity COMPANY
Slide 11: Engineering That Is Different
ENGINEERING THAT IS DIFFERENT ** Techno has sold off 37.50 MW of its Wind Power Assets out of the 111.90 MW situated in Tamil Nadu at an approximate consideration of Rs. 158.93 Crores and entered into MOUs for the sale of another 71.40 MW. COMPANY OVERVIEW BUSINESS SEGMENT REVIEW FINANCIAL REVIEW
Slide 12: Once a Customer, Always a Customer
ONCE A CUSTOMER, ALWAYS A CUSTOMER TEECL primarily serves CPSUs, state-run utilities The Company follows the operating philosophy of and private sector customers (captive power plant and power distribution system for power intensive industries). Over the years, it » Helped build 50% of India’s natio
Slide 13: Growing Recognition
GROWING RECOGNITION Certificate of appreciation from Best player in 765 KV AIS IEI Industry Excellence Meritorious Performance in JBVNL for 100% electrification in Substation Construction in Award, 2016 Power Sector in 2011-12 by Dhanbad in 2018 India in 2018’ by PGCIL Ministry of Power Awarded Cert
Slide 14: Capable Leadership
CAPABLE LEADERSHIP Qualification » Postgraduate in Management (IIM, Ahmedabad) » Honours graduate in Industrial Engineering Experience » Merchant banker with National Grindlays Bank » Management consultant deputed to BHEL Association with TEECL » Grew TEECL into prominent Indian EPC company in power
Slide 15: Leveraging Opportunities
LEVERAGING OPPORTUNITIES » As per, Gazette notification (GOI) all Thermal Power Plants need to limit » Total target is of 175 GW of renewal » India has around 375 MW of Data Centre in H12020, their sulphur emission. energy capacity » Total Target is for 123 GW by 2026 » Out of the above, bids for 50
Slide 16: Utilising Corporate Strength
UTILISING CORPORATE STRENGTH Consistent Ability to embrace Efficient working Rich terrain upgradation to challenges capital management understanding industry-next technology On-time project Cost-effectiveness Partnership with Robust vendor completion large international eco-system manufacturers COMP
Slide 17: Utilising Corporate Strength (Contd.)
UTILISING CORPORATE STRENGTH - (Contd.) Constantly improving Quicker project Recorded low gearing, focus on customer- completion than industry high credit rating, centricity and standards low-cost debt contractual obligations. Delivered most EPC and Management of customer Zero Penalty Record Transmi
Slide 18: EPC / Transmission Asset Ownership / Green Power
EPC Transmission Asset Ownership Green Power
Slide 19: Delivering Consistently
DELIVERING CONSISTENTLY 63% ₹ 2,500+ million ROCE of EPC as on annual cash surplus 31 March, 2022 ~ ₹ 38,283 million 15% size of order book as on EPC EBIDTA Margin over the 31st December, 2022 last 5 years 24 months 92% revenue visibility Revenue of the total business from EPC as on 31 March, 2022 C
Slide 20: Major Domains of Operations
MAJOR DOMAINS OF OPERATIONS » Power distribution systems to power » Flue Gas Desulfurization EHV substations intensive industries » Turnkey solutions to captive power » EHV substations up to 765 kV (AIS/GIS) » Offsite piping systems plants » STATCOM installation up to 250 MVaR » Oil handling plant p
Slide 21: Operating Philosophies
OPERATING PHILOSOPHIES » Well-planned projects executed in sync with cash flow and contractual obligations » Focus on PAT/retained cash (not size of order book) » Conservative project management approach » Cash rich; low gearing; income mix (lumpy and annuity) » Zero penalty record; » Marginal worki
Slide 22: EPC Order Book as on 31st December 2022
EPC ORDER BOOK AS ON 31st December, 2022 Name of the client Amount in mn 38.29% Rajasthan Rajya Vidyut 14,660.4 Prasaran Nigam Ltd. ₹ 15,128 million 15.30% PGCIL 5,855.7 Generation 15.06% REC Power 5,766.5 Distribution Co. Ltd ( JKPDD) 6.88% Sterlite Power 2,635.4 Transmission Total - 6.02% Tripura
Slide 23: EPC Financials Over the Years
EPC FINANCIALS OVER THE YEARS Revenue (₹ in mn) EBITDA (₹ in mn) FY 21-22 9,882.34 FY 21-22 1,534.75 FY 20-21 7,916.87 FY 20-21 1,436.42 FY 19-20 7,843.49 FY 19-20 1,403.03 FY 18-19 8,791.51 FY 18-19 1,537.97 FY 17-18 11,733.70 FY 17-18 1,832.87 PBT (₹ in mn) FY 21-22 1,471.29 FY 20-21 1,371.54 FY 1
Slide 24: EPC / Transmission Asset Ownership / Green Power
EPC Transmission Asset Ownership Green Power
Slide 25: Creating Value for TEECL
CREATING VALUE FOR TEECL Jhajjar KT – Haryana – Patran – Punjab – (Completed Kohima– Nagaland–(Completed (Completed and Exited) and Exited) and Exited) » 400 kV transmission system » Build, Own, Operate and Maintain » Build, Own, Operate and Maintain comprises Double Circuit Quad (BOOM) transmission
Slide 26: Encouraging Scope
ENCOURAGING SCOPE » Leverage EPC knowledge as transmission asset complements EPC » Enhance valuation and profitable encashment opportunities with long-term annuity incomes » Generate operations and maintenance revenues » Improve scale and stability with asset ownership » Reduce requirement to bid ag
Slide 27: EPC / Transmission Asset Ownership / Green Power
EPC Transmission Asset Ownership Green Power
Slide 28: Ensuring Sustainability
ENSURING SUSTAINABILITY Key highlights of the segment » Sold 44.45 MW of wind power assets at an effective valuation of ₹ 2,150 million during the Q1 FY 2016 » Sold 33 MW of wind energy assets at an effective valuation of ₹ 1,650 million in January 2017 » Exited the assets at the same price at which
Slide 29: Current Asset Overview
CURRENT ASSET OVERVIEW Wind Project Capacity 18 MW 111.90 MW ** Date of Acquisition/ During 2009-10 March 31, 2011 - February 24, 2012 Commissioning Location Karnataka Tamil Nadu Capacity 12 turbines x 1.5 MW each 48 turbines x 1.5 MW each; 19 turbines x 2.1 MW each PLF 18% - 24% 24% - 28% Tariff ₹
Slide 30: Green Energy Assets
GREEN ENERGY ASSETS Revenue (₹ in mn) EBITDA (₹ in mn) PBT (₹ in mn) FY 21-22 856 FY 21-22 690 FY 21-22 290 FY 20-21 747 254 FY 20-21 471 254 FY 20-21 72 254 FY 19-20 683 235 FY 19-20 524 235 FY 19-20 119 235 FY 18-19 1,095 FY 18-19 954 FY 18-19 467 FY 17-18 1,242 FY 17-18 1,106 FY 17-18 682 Units g
Slide 31: India's Data Centre industry expected to grow significantly
As one of the world’s largest data subscriber population adapts to a new digital life, India’s Data Centre industry is expected to grow significantly.
Slide 32: Aligned to the Big Picture
ALIGNED TO THE BIG PICTURE Vision To create multiple ultra-scalable, hyper-density Data Centres. » Develop hyper-density Data Centres of 250 MW by FY2030 across India » Build an ultra-scalable, hyper-density Data Centre of 24 MW IT Load in Chennai, Tamil Nadu by FY2023 » Build an Data Centre of 24 M
Slide 33: Aligned to the Big Picture (Contd.) - Chennai Data Centre
ALIGNED TO THE BIG PICTURE (CONTD.) Chennai Data Centre SIRUSERI, Chennai Land Size & Built • Land Size – 4 acres Up in Sq. Ft. • Built Up Area – Approx. 200,000 sft Sq. Ft. Time to build • 3-4 months approval time • Time to build post approvals – 18 months • In house EPC capabilities Key Amenities
Slide 34: Financial Review
@...: Review
Slide 35: Analysing Quarterly Financials – Q3FY23
ANALYSING QUARTERLY FINANCIALS – Q3FY23 Revenue EBITDA (₹ in mn) (₹ in mn) 1930.1 245.9 3033.5 426.16 EBITDA Margin Other Income (%) (₹ in mn) 12.95 Other Income (Normal) 199.5 102.2 14.04 Other Income (One time) 0.00 1100.00 Profit after tax (₹ in mn) Interest Cost (₹ in mn) 314.10 16.31 1148.70 16
Slide 36: Analysing Half Yearly Financials – 9MFY23
ANALYSING HALF YEARLY FINANCIALS – 9MFY23 Revenue EBITDA (₹ in mn) (₹ in mn) 5,940.10 1,434.20 7,568.40 1,832.30 EBITDA Margin Other Income (%) (₹ in mn) Other Income (Normal) 24.14 519.66 376.86 24.21 Other Income (One time) 0.00 1100.00 Profit after tax (₹ in mn) (₹ in mn) Interest Cost 1,260.68 5
Slide 37: Annual Financials
ANNUAL FINANCIALS EBIT Revenue (₹ in mn) (₹ in mn) EPC EPC 1526.49 9884.28 7916.87 1449.01 Energy 290.93 Energy 856.32 326.31 751.85 PAT Other Income (₹ in mn) (₹ in mn) PAT Other Income (Normal) 2,603.43 403.94 2,044.42 397.92 Other Income (One time) 1100.00 438.00 March 2022 March 2021 1. Our EPC
Slide 38: Annual Financials - (Contd.) Balance Sheet
ANNUAL FINANCIALS - (Contd.) Balance Sheet (in Millions) 2021 2022 SOURCES OF FUNDS Shareholders’ funds 16,162 18,367 Minority interest --- --- Loan funds --- --- Deferred tax liabilities 1,150 1,220 Other liabilities and provisions 407 1310 Total 17,719 20,898 APPLICATION OF FUNDS Net fixed assets
Slide 39: Techno Electric & Engineering Company Limited
TECHNO ELECTRIC & ENGINEERING COMPANY LIMITED Corporate Office: 1B Park Plaza, 71 Park Street, Kolkata 700 016
Techno Electric & Engineering Company — Q3 FY2023 Earnings Presentation on 6ix