Inox Wind Ltd. · NSE:INOXWIND
Inox Wind — Q2 FY22 Earnings Presentation
29 slides from Inox Wind's earnings presentation, Oct 14, 2021
Slide 1: Stock exchange disclosure letter – Earnings Presentation
MOA 1, IWL: NOT: 145: 2021 14' October, 2021 The Secretary The Secretary BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street Bandra (E) Mumbai 400 001 Mumbai 400 051 Scrip code: 539083 Scrip code: INOXWIND Sub: Disclosure o
Slide 2: Inox Wind Limited Q2 - FY22 Investor Update
INOX WIND LIMITED Q2 - FY22 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 OPERATIONAL HIGHLIGHTS STRATEGIC INITIATIVES GROUP STRUCTURE & BUSINESS OVERVIEW WIND POWER INDUSTRY ORDER BOOK & MANUFACTURING CAPACITY WIND O&M BUSINESS FINANCIAL HIGHLIGHTS 3
Slide 5: Operational Highlights
WIND OPERATIONAL HIGHLIGHTS
Slide 6: Operational Highlights - Q2 FY22
OPERATIONAL HIGHLIGHTS - Q2 FY22 Gross Revenue (INR crs) EBITDA (INR crs) 250 34% 229 * 10 5 200 171 0 150 Q2FY21 Q2FY22 -10 100 -20 50 -30 0 -40 -33 Q2FY21 Q2FY22 *Includes Rs. 63 Crs towards supplies to step down subsidiary Nani Virani (SECI II SPV) which has got eliminated in the process of conso
Slide 7: Strategic Initiatives - FY22 & Onwards
STRATEGIC INITIATIVES - FY22 & ONWARDS Management is committed to take significant initiatives on key balance sheet items: Retiring of high cost debts Leveraging IWISL equity amongst others Balance Sheet Promoters have also committed to infuse funds(upto max. permissible limit, ie 5%) in IWL
Slide 8: Strategic Initiatives - FY22 & Onwards
STRATEGIC INITIATIVES - FY22 & ONWARDS Aiming to mitigate the EPC related risks by preferring for equipment supply contracts over turn Product Mix and EPC key contracts. More options to the customers: 2 MW & 3.3 MW turbines. Initiated process for monetization of O&M business: Hiving off EPC
Slide 9: Group Structure & Business Overview
GROUP STRUCTURE & BUSINESS OVERVIEW
Slide 10: Part of strong Inox group
.. part of strong Inox group Established businesses and market leadership across verticals The Inox Group, established more than 90 years ago, is a well regarded multi Billion USD group with diversified presence across 7 business verticals. It includes 5 listed companies with a combined market cap o
Slide 11: Group Structure & Business Overview
GROUP STRUCTURE & BUSINESS OVERVIEW Inox Wind Limited (IWL) 98.41% Resco Global Wind Services Pvt Ltd 100% Inox Wind Infrastructure Services Limited (RGSPL)* (IWISL) EPC business shall be hived off/ transferred to separate business entity i.e. RGSPL Manufacturing Infrastructure (EPC) O&M Amongst t
Slide 12: Wind Power Industry – Witnessing Strong Revival
WIND POWER INDUSTRY – WITNESSING STRONG REVIVAL
Slide 13: Wind Sector: Gaining Strength
WIND SECTOR : GAINING STRENGTH Wind Power - Installations Wind Power - Auctions Auction Period Volume (MW) Yearly Volumes (MW) SECI 1 – SECI 3 Feb’17 – Mar’18 4050MW State Auctions Feb’17 – Mar’18 1500MW FY18: 5550MW SECI 4 Apr-18 2000MW NTPC Aug-18 1200MW SECI 5 Sep-18 1200MW Hybrid 1 Dec-18 840MW
Slide 14: Wind Power Sector – Positive Outlook
WIND POWER SECTOR – POSITIVE OUTLOOK *Power Capacity Ramp up – 2000-2040 The India Vision Case(IVC) is based on a rapid resolution of today’s public health crisis and a more complete realisation of India’s stated energy policy objectives, accompanied by a faster pace of economic growth than in the S
Slide 15: Significant Market Opportunities Opening for IWL
SIGNIFICANT MARKET OPPORTUNITIES OPENING FOR IWL Major thrust in renewable sector: India has announced a renewable energy target of 175 GW by 2022 and a target of 450 GW by 2030. Leading Indian companies, the likes of Reliance Industries, NTPC, Adani, JSW amongst others, have announced ambitio
Slide 16: IWL – Order Book & Manufacturing Capacity
IWL – ORDER BOOK & MANUFACTURING CAPACITY
Slide 17: Strong Order Book for IWL
STRONG ORDER BOOK FOR IWL Particulars Capacity MW Auction based order book 950 Others 104 Supplied (454) Net order book (A) 600 LOI for 3.3 MW from Adani (B) 501.6 Agreement signed with leading 23.1 MNC IPP for 3.3 MW ( C) Order from Continuum 250 Supplied (98) Net order book (D) 152 Total (A+B+C+D)
Slide 18: 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 19: Wind O&M Business – Emerging into a Big Growth Driver
WIND O&M BUSINESS – EMERGING INTO A BIG GROWTH DRIVER
Slide 20: O&M Business – Consistent Growth, High Cash Flows
O&M BUSINESS – CONSISTENT GROWTH, HIGH CASH FLOWS Established business with more than 8 years of operating history; Revenue growth of ~14% (CAGR) Already established between FY17-21. Strong Annuity Long term agreements in place with full revenue visibility with inbuilt fixed escalation in contra
Slide 21: O&M – Presence in Wind-Resource Rich States in India
O&M – PRESENCE IN WIND-RESOURCE RICH STATES IN INDIA Rajasthan: 330 MW Madhya Pradesh: 372 MW Gujarat: 1,042 MW Maharashtra: 210 MW Andhra Pradesh : 68 MW Karnataka: 98 MW Kerala: 16 MW Tamil Nadu: 6 MW 20
Slide 22: Grown at an Attractive Rate by Entering into Contracts with Leading Players
GROWN AT AN ATTRACTIVE RATE BY ENTERING INTO CONTRACTS WITH LEADING PLAYERS IN INDIAN WIND SECTOR Operating portfolio under O&M contract has grown at CAGR of ~51% in 9 years 2500 +236 MW +80 MW +44 MW 2000 +158 MW 2142 +638 MW 2062 1782 1826 1500 1624 +544 MW 1000 986 +140 MW +138 MW 500 +110 MW 442
Slide 23: IWL – Consolidated Financial Highlights
IWL – CONSOLIDATED FINANCIAL HIGHLIGHTS
Slide 24: Financial Highlights
FINANCIAL HIGHLIGHTS Financials Revenue and EBITDA compared to corresponding quarter : • Revenue of Rs. 229* Crs in Q2 FY22 against revenue of Rs. 171 Crs in Q2 FY21 • *Revenue of Rs. 229 Crs includes Rs. 63 Crs, towards supply to step down subsidiary Nani Virani (SECI II SPV) which has got elimin
Slide 25: ...While Consistently Improving its Working Capital
...WHILE CONSISTENTLY IMPROVING ITS WORKING CAPITAL Working Capital: INR Cr. Particulars Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Inventory 1,115 1,020 958 917 917 887 Net Receivables 65 70 22 (161) (185) (138) Net Payables 760 644 496 448 387 398 Others 311 231 165 193 280 315 Net Working Capital
Slide 26: Financials – Consolidated P&L Statement
FINANCIALS – CONSOLIDATED P&L STATEMENT Q2FY22 Q2FY21 Q1FY22 H1FY22 H1FY21 FY21 Particulars (In Rs Lakhs) (In Rs Lakhs) (In Rs Lakhs) (In Rs Lakhs) (In Rs Lakhs) (In Rs Lakhs) Income a) Revenue from operation (net of taxes) 16,584 17,109 16,936 33,520 26,776 71,073 b) Other Income 167 553 145 312 1,
Slide 27: Financials – Consolidated Balance Sheet
FINANCIALS – CONSOLIDATED BALANCE SHEET As of 30-Sep-21 As of 31-Mar-21 As of 30-Sep-21 As of 31-Mar-21 Particulars Particulars (In Rs Lakhs) (In Rs Lakhs) (In Rs Lakhs) (In Rs Lakhs) Assets EQUITY AND LIABILITIES (1 ) Non-current assets (1) Equity (a) Property, Plant and Equipment 1,28,106 1,17,194
Slide 28: Financials – Consolidated Cash Flow
FINANCIALS – CONSOLIDATED CASH FLOW H1FY22 H1FY21 H1FY22 H1FY21 Particulars Particulars (In Rs Lakhs) (In Rs Lakhs) (In Rs Lakhs) (In Rs Lakhs) Cash flows from operating activities Cash flows from investing activities Profit/(loss) for the year after tax (11,005) (14,927) Purchase of property, plant
Slide 29: Thank You
THANK YOU Jitendra Mohananey Group Financial Controller Contact No: 0120 6149600 Email : Investors.iwl@inoxwind.com 28