Orient Green Power Company Ltd · NSE:GREENPOWER
Orient Green Power — 9M FY19 Earnings Presentation
24 slides from Orient Green Power's earnings presentation, 2019
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: 9M FY19 Financial Highlights Operational 4 Outlook & Highlights Regulatory Appendix: ` Overview Financial 11 Statements 13 16 18 22 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 In Rs. cr EBITDA Revenues 461 433 402 385 384 305 309 293 307 302 230 213 FY16 FY17 FY18 FY16 FY17 FY18 Finance Cost Depreciation 277 267 235 207 136 136 169 124 136 205 199 178 FY16 FY17 FY18 FY16 FY17 FY18 Cash Profit Profit before Tax 110 129 -26 5 25
Slide 7: What has changed in recent times
What has changed in recent times Improvement in grid evacuation level 97.4 94.8 95.3 96.3 95.4 Increased frequency bandwidth for 93.1 77.2 renewables Phase-wise shutting down of thermal power plants during the wind season Request for expedition of 1,000 MW green energy corridor to help 100% ev
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 0 0 FY15 FY16 FY17 Q1 FY19 H1 FY19 9M FY
Slide 9: Focus on Debt Reduction
Focus on Debt Reduction Debt (Rs. Cr) Interest Expense (Rs. Cr) 2,159 2,104 1,978 1,887 286 278 265 267 1,574 1,543 211 156 FY14 FY15 FY16 FY17 FY18 9M FY19 FY14 FY15 FY16 FY17 FY18 9M FY19 Interest / Revenue (%) EBITDA / Interest (x) 70% 64% 60% 58% 59% 57% 1.41 1.38 1.10 0.81 0.84 0.77 FY14 FY15 F
Slide 10: Resulting in Improved Profitability
Resulting in Improved Profitability EBITDA (Rs. Cr) EBIT (Rs. Cr) 179 176 293 300 243 232 124 129 215 215 72 8 FY14 FY15 FY16 FY17 FY18 9M FY19 FY14 FY15 FY16 FY17 FY18 9M FY19 PAT (Rs. Cr) Cash Profit (Rs. Cr) (33) (96) (71) (188) 86 (233) 59 25 (340) FY14 FY15 FY16 FY17 FY18 9M FY19 (50) (47) (63)
Slide 11: Key Developments: 9M FY19
Or Key Developments: 9M FY19
Slide 12: Key Developments – 9M FY19
Key Developments – 9M FY19 Wind Business – Steady performance despite delayed onset of wind season Recent strategic initiatives coupled with improved macros and diversified asset base resulted in delivering steady performance despite delayed onset of wind season Marked improvement of Grid Availa
Slide 13: Financial Highlights
Financial Highlights
Slide 14: 9M FY19 Consolidated Financial Performance
9M FY19 Consolidated Financial Performance In Rs. Mn 9M 2018-19 9M 2017-18 Continued Operations: Revenue 2,827.9 3,544.6 EBITDA 2,151.0 2,783.8 Margins % 76.0% 78.5% EBIT 1,290.0 1,842.9 EBIT % 45.6% 51.9% PBT (269.2) 229.2 Discontinued Operations PBT (61.7) (208.1) Consol PBT (330.9) 21.1 1. The sh
Slide 15: Key Financial Highlights – 9M FY19
Key Financial Highlights – 9M FY19 Wind Business: Steady performance despite delayed onset of wind season Improved macros coupled with strategic initiatives aiding performance Expect business momentum to continue: – Supportive macros : • Consistent grid availability especially in TN; grid avai
Slide 16: Operational Highlights
Or Operational Highlights
Slide 17: Wind Operations
Wind Operations Unit of Particulars 9M FY19 9M FY18 State Capacity (MW) Measurement Capacity (incl. overseas Tamil Nadu 308.3 Mw 425 425 capacity) Andhra Pradesh 75.40 Units Generated (Gross) Mn 581 637 Gujarat 29.2 Annualized PLF % 20 23 Karnataka 1.25 Average Gross Realisation (before charges and
Slide 18: Outlook & Regulatory Overview
Outlook & Regulatory Overview
Slide 19: Outlook
Outlook Positive business outlook on the back of improving macros – Supportive Govt. policies in terms of improving grid availability, introducing innovative project funding models and working towards developing favorable viable tariff regime. – Improving macros coupled with Company’s strategic in
Slide 20: Renewable Energy Certificates
Renewable Energy Certificates Trading sessions continued to witness higher volumes during the quarter – Zero inventory for the fourth consecutive quarter. Steady demand and limited supply resulted in most of the certificates getting traded above their floor prices. OGPL sold 93,429 RECs in Q3
Slide 21: Regulatory & Market Developments
Regulatory & Market Developments TSERC / KERC / TNERC announces APPC cost for FY 2018-19 – – Telangana State Electricity Regulatory Commission (TSERC) announced that the APPC cost of INR 4.097/kWh for FY17-18 will be applicable for this financial year as well. – Karnataka Electricity Regulatory Co
Slide 22: Appendix: Financial Statements
Appendix: Financial Statements
Slide 23: Financial Performance – 9M FY19 (Consolidated – IND-AS)
Financial Performance – 9M FY19 (Consolidated – IND-AS) Rs. Million 9M FY19 9M FY18 Continued Operations Sale of Power 2,439 2,820 Other Operating Income 303 407 Total Income 2,742 3,227 O & M and Other costs 677 761 Total Expenditure 677 761 Operational EBITDA 2,065 2,466 EBITDA (%) 75% 76% Other I
Slide 24: 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
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