Inox Wind Ltd. · NSE:INOXWIND
Inox Wind — Q4 FY18 Earnings Presentation
23 slides from Inox Wind's earnings presentation, May 18, 2018
Slide 1: Cover letter to BSE and NSE on earnings presentation
IWL: N01: 21: 2018 18th May, 2018 The Secretary The Secretary BSE Limited National Stock Exchange of India Limited Phiroze J eej eebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai 400 001 ‘ Bandra (E), Mumbai 400 051 Fax No. 022—22723121/2037/39/41/61 Fax No. 022—2659 8237/38 Sc
Slide 2: Inox Wind Limited Q4FY18 & FY18 Investor Update
INOX WIND LIMITED Q4FY18 & FY18 INVESTOR UPDATE
Slide 3: 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 4: Discussion Summary
DISCUSSION SUMMARY FY18: THE YEAR THAT WAS KEY HIGHLIGHTS RECENT POLICY UPDATES FOR WIND INDUSTRY RESULT ANALYSIS SALES & COMMISSIONING WORKING CAPITAL ANALYSIS - POSTIVE MOMENTUM CONTINUES FY18 – FOCUS ON BALANCE SHEET IMPROVEMENT CASH FLOW AND DEBT ANALYSIS STRONG ORDER BOOK MA
Slide 5: FY18: The Year That Was
FY18: THE YEAR THAT WAS Regime change causes disruption. FY18 was a year of transformation for the Indian Wind Sector on back of the change to an auction regime vs. FIT regime earlier. This led to a huge disruption in the industry during the year which is reflected in the annual wind capacity addi
Slide 6: Key Highlights
KEY HIGHLIGHTS Continued order wins bode well for FY19-20 revenue outlook. Won orders of 350MW during the quarter from SECI-3 (200MW), SECI-4 (100MW) and Maharashtra state auction (50MW). This takes our total auction based order book to a sector leading 950MW. Effective April, we have recommence
Slide 7: Recent Policy Updates for Wind Industry
RECENT POLICY UPDATES FOR WIND INDUSTRY National Wind-solar Hybrid Policy. Ministry of New and Renewable Energy (MNRE) unveiled a National Wind-solar Hybrid Policy which seeks to promote new hybrid projects as well as hybridization of the existing projects. Gujarat announces policy for allotment
Slide 8: Result Analysis
RESULT ANALYSIS In Rs. Cr. Q4 FY18 YoY ANALYSIS REVENUES EBITDA & EBITDA MARGIN (%) PAT & PAT MARGIN (%) 22.5% 12.5% 1,019 230 127 203 (30) (55) Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 -14.6% Q4 FY17 Q4 FY18 -27.1% REVENUES EBIDTA EBIDTA % PAT PAT % FY18 YoY ANALYSIS REVENUES EBITDA & EBITDA MARGIN (%) PAT
Slide 9: Sales & Commissioning
SALES & COMMISSIONING Q4 FY17 (MW) Q4 FY18 (MW) FY17 (MW) FY18 (MW) 422 652 656 636 522 170 144 94 172 82 10 36 24 0 6 8 Nacelles & Hubs Blades Towers Commissioning Nacelles & Hubs Blades Towers Commissioning The sales & commissioning numbers were impacted by the transition to the auction regime in
Slide 10: Working Capital Analysis – Positive Momentum Continues
WORKING CAPITAL ANALYSIS – POSTIVE MOMENTUM CONTINUES Particulars (Rs Cr) Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Inventory 690.4 866.5 955.4 940.6 929.4 Net Receivables 2,366.4 1,981.5 1,656.7 1,360.3 1060.0 Payables 968.7 628.8 506.1 451.7 536.3 Others 284.1 139.4 179.1 139.7 213.7 Net Working Capital
Slide 11: FY18 – Focus on Balance Sheet Improvement
FY18 – FOCUS ON BALANCE SHEET IMPROVEMENT The year was marked by our unrelenting focus on improving balance sheet metrics. We are highlighting some of the internals of the metrics to give you more insights. Net Receivables (Rs cr) Net Working Capital (Rs cr) FY18 Opening Balance 1,804 FY18 Opening
Slide 12: Cash Flow and Debt Analysis
CASH FLOW AND DEBT ANALYSIS (In Rs Cr) 4QFY17 4QFY18 FY17 FY18 Opening Net Debt (946) (901) (641) (779) Cash Profit 138 (43) 347 (133) Net Working Capital 159 470 (163) 565 Capex (175) (141) (303) (177) Others 44 (90) (19) (180) Closing Net Debt (779) (705) (779) (705) (In Rs Cr) 4QFY17 1QFY18 2QFY1
Slide 13: Strong Order Book
STRONG ORDER BOOK Auction based order book stands at 950MW. During the quarter, we won total orders of 350MW from SECI-3 (200MW), SECI-4 (100MW) and Maharashtra state auction (50MW). We look forward to increasing our order book from the annual 10GW auctions expected in FY19 & FY20*. We anticip
Slide 14: 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 Well positioned to take advantage of the growing market. Potential to debottleneck our nacel
Slide 15: 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 for installation of an aggregate capacity of more than 5
Slide 16: Technology
TECHNOLOGY Moving towards bigger turbines on the same platform Inox Wind is working towards the next Higher Energy Lower Energy Higher Returns Yield Cost generation of Wind turbines with higher hub heights and longer blades to deliver superior PLFs. 20% Launched “Power Booster” technology upgrad
Slide 17: O&M – Annuity Business
O&M – ANNUITY BUSINESS Inox Wind has an installed wind turbine base of approx 2.4GW in India with multi year O&M agreements We expect this revenue stream to pick up strongly in the coming years as the fleet size increases on back of strong auction order inflow. O&M revenues are noncyclical in
Slide 18: Shareholding Structure
SHAREHOLDING STRUCTURE Market Data As on 17.05.18 (BSE) 170 160 Market capitalization (Rs. Cr) 2181 150 140 Price (Rs.) 98 130 120 110 No. of shares outstanding (Cr) 22 100 90 Face Value (Rs.) 10.0 Source - BSE Source - BSE % Shareholding – As of 31st March2018 % Key Institutional Investors as of 31
Slide 19: Detailed Financials: Consolidated P&L Statement
DETAILED FINANCIALS CONSOLIDATED P&L STATEMENT (In Rs Lakhs) Q4FY18 Q4FY17 YoY Q3FY18 QoQ FY18 FY17 YoY 1 Income (a) Revenue from operations (net of taxes) 20,341 101,922 -80% 9,093 124% 47,984 341,500 -86% (b) Other income 223 1,433 380 2,436 6,532 Total Income (a+b) 20,564 103,355 -80% 9,473 117%
Slide 20: Detailed Financials: Consolidated Balance Sheet
DETAILED FINANCIALS CONSOLIDATED BALANCE SHEET As at As at As at As at Particulars Particulars 31-Mar-18 31-Mar-17 31-Mar-18 31-Mar-17 EQUITY AND LIABILITIES Assets (1) Equity (1 ) Non-current assets (a) Equity Share capital 22,192 22,192 (a) Property, Plant and Equipment 95,511 73,456 (b) Other Equ
Slide 21: Looking Ahead
LOOKING AHEAD Sector prospects looking strong. The reduced cost of power from renewable auctions provides a strong economic rationale for preferring renewables vs. fossil fuels. At today’s auction prices, wind energy is the lowest cost of power amongst the various options available for discoms whi
Slide 22: Financial Summary
FINANCIAL SUMMARY ROE: PAT/Avg. Equity, ROCE: EBIT/Avg. Capital Employed [(Capital Employed = Equity + Total Debt) Consolidated financials, FY13-15 as per IGAAP, FY16-17 as per Ind AS Revenue from Operations EBIDTA (Inc OI) & EBIDTA Margin % PAT & PAT Margin % 19.0% 14.2% 4,451 17.4% 17.6% 18.3% 8.4
Slide 23: Thank You
THANK YOU Mr. Atul Soni Head - Investor Relations- Inox Wind Contact No: 0120 6149881 Email : Investors@inoxwind.com 22