Inox Wind Ltd. · NSE:INOXWIND
Inox Wind — Q1 FY2018 Earnings Presentation
22 slides from Inox Wind's earnings presentation, August 2017
Slide 1: Inox Wind Limited Q1FY18 Investor Update
INOX WIND LIMITED Q1FY18 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 SECTOR HIGHLIGHTS Q1 COMPANY HIGHLIGHTS RESULT ANALYSIS SALES AND COMMMISSIOING WORKING CAPITAL ANALYSIS CASH FLOW AND DEBT ANALYSIS ORDER BOOK MANUFACTURING CAPACITY PROJECT SITES SHAREHOLDING STRUCTURE DETAILED FINANCIALS FI
Slide 4: Financial Results Highlights
FINANCIAL RESULTS HIGHLIGHTS 4
Slide 5: Sector Highlights
SECTOR HIGHLIGHTS As was anticipated, we are seeing a temporary downturn in the Indian Wind Power market due to the transition from the FIT based market regime to the auction based market regime. We expect this transition to continue in Q2 as well, with normalization from an order inflow perspec
Slide 6: Q1 Company Highlights
Q1 COMPANY HIGHLIGHTS Sales – Blades (20MW), Towers (2MW). Commissioning 46MW in the quarter (vs 48MW in Q1FY17). Receivables reduced by ~Rs400cr to Rs 1,984cr (vs Rs 2,382cr in March 17). Identified & implementing various steps to bring in incremental cost savings in the existing supply cha
Slide 7: Result Analysis
RESULT ANALYSIS REVENUES EBITDA & EBITDA MARGIN (%) In Rs. Cr. 435.0 10.5% 106.0 45.7 -12.6% Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 (13.3) REVENUES EBIDTA EBIDTA % PAT & PAT MARGIN (%) 11.8 2.7% Q1 FY17 Q1 FY18 -36.7% (39.0) PAT PAT % Q1 results reflect the temporary downturn in the Indian Wind Power secto
Slide 8: Sales & Commissioning
SALES & COMMISSIONING Q1 FY17 (MW) Q1 FY18 (MW) 198 148 48 46 40 20 0 2 Nacelles & Hubs Blades Towers Commissioning Q1 results reflect the temporary downturn in the Indian Wind Power sector 8
Slide 9: Working Capital Analysis
WORKING CAPITAL ANALYSIS June 2016 March 2017 June 2017 146 349 180 172 125 122 206 197 64 180 153 250 258 29 161 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 and Debt Analysis
CASH FLOW AND DEBT ANALYSIS (In Rs Cr) Q1 FY17 FY 17 Q1 FY18 Opening Net debt (641) (641) (779) Cash Profit 22 347 (26) Net Working capital (587) (163) (276) Capex (42) (303) (14) Other 24 (19) (16) Closing Net debt (1,225) (779) (1,110) (In Rs cr) Jun-16 Mar-17 Jun-17 Net Debt 1,225 779 1,110 Equit
Slide 11: Order Book
ORDER BOOK Current order book of the company stands at 300MW based on SECI 1st auction. We expect to commence the execution of our SECI-1 order book in H2. Current status of auctions: SECI – 2nd auction of 1000MW process underway. Technical Bids have been submitted. Expect reverse auction in A
Slide 12: 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 13: 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 14: Shareholding Structure
SHAREHOLDING STRUCTURE 250 Market Data As on 08.08.17 (BSE) Share Price Performance Market capitalization (Rs. Cr) 2,996 200 Price (Rs.) 135 150 No. of shares outstanding (Cr) 22 100 Face Value (Rs.) 10.0 Source - BSE Source - BSE % Shareholding – 30th June 2017 Key Institutional Investors at 30th J
Slide 15: Detailed Financials Consolidated P&L Statement
DETAILED FINANCIALS CONSOLIDATED P&L STATEMENT (In Rs Lakh) Q1FY18 Q1FY17 YoY Q4FY17 QoQ Income (a) Revenue from operations (net of taxes) 10,599 43,499 -76% 101,922 -90% (b) Other income 1,069 2,066 -48% 1,433 -25% Total Income (a+b) 11,668 45,565 -74% 103,355 -89% Expenses a) Cost of materials con
Slide 16: Financial Summary
FINANCIAL SUMMARY In Rs. Cr Revenue from Operations EBIDTA (Inc OI) & EBIDTA Margin % PAT & PAT Margin % 19.0% 17.4% 17.6% 18.3% 14.2% 4,450.7 11.8% 8.4% 10.9% 10.3% 8.7% 783.2 461.2 3,415.0 625.7 CAGR – 34% 2,709.0 CAGR – 33% CAGR – 21% 471.7 296.4 303.3 1,566.8 1,058.9 201.2 185.4 150.4 132.3 FY13
Slide 17: Industry Section – Explaining the Auction Regime
INDUSTRY SECTION – EXPLAINING THE AUCTION REGIME 17
Slide 18: Market Outlook – Strong Expansion Ahead
MARKET OUTLOOK – STRONG EXPANSION AHEAD 32.2 GW • INDIA’S INSTALLED WIND CAPACITY MARCH 17* 60GW • TARGET WIND INSTALLATION BY 2022** • ANNUAL ADDITION OF WIND ENERGY PRODUCTION TO > 7 GW ANNUAL DOUBLE ON BACK OF-: ADDITION EXPECTED • CENTRAL AUCTIONS – ~4GW/YEAR IN NEXT FIVE YEARS • STATE AUCTIONS
Slide 19: 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 20: 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 grow FY2019 onwards 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
Slide 21: Technology
TECHNOLOGY Moving towards bigger turbines on the same platform Inox Wind is 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 22: Thank You
FOR FURTHER QUERIES : THANK YOU Mr. Atul Soni Head - Investor Relations- Inox Wind Contact No: 0120 6149881 Email : Investors@inoxwind.com 22