India Power Corp. Ltd. · NSE:DPSCLTD
India Power — Investor Presentation (March 2018)
35 slides from India Power's investor presentation, March 2018
Slide 1: India Power Corporation Limited Investor Presentation – March 2018
INDIA POWER CORPORATION LIMITED Investor Presentation – March 2018
Slide 2: Agenda
2 Agenda Company Overview Business Highlights Strategy and Outlook Financial Highlights
Slide 3: Evolution of IPCL
3 Evolution of IPCL • Dishergarh Power Supply Company (DPSC) Limited was incorporated by Bengal Coal Ltd (entity of Andrew Yule Company Ltd.) 1919 • Created for distribution of power in the major industrial belt of West Bengal, i.e. Asansol and Raniganj area • Has distribution license on over 618 sq
Slide 4: What we do
4 What we do India Power Corporation Ltd (IPCL) is a customer-focused end-to-end energy solutions provider What we do Generation Distribution Services One of the oldest Distribution Licensees In partnership with Uniper, IPCL offers a Presence in thermal and renewables in the country having expertise
Slide 5: Geographical Presence
5 Geographical Presence 279 MVA 12 MW Distribution Franchisee Thermal Plant, Dishergarh Gaya, Bihar 36 MW Solar Power Plant, 221 MVA Uttarakhand Distribution Licensee, Asansol 60 MW Wind Plant, Rajasthan 2 MW Solar Power Plant, Seebpore, West Bengal 29.8 MW Wind Plant, Gujarat 300 MW Thermal Power P
Slide 6: Experienced Board & Management Team
6 Experienced Board & Management Team Board of Directors Amit Kiran Deb S Sundareshan Hemant Kanoria Independent Director Independent Director Chairman Nand Gopal Khaitan Debi Prasad Patra Independent Director Independent Director Sunil Kanoria Vice-Chairman Dipali Khanna Asok Kumar Goswami Independ
Slide 7: Agenda
7 Agenda Company Overview Business Highlights Strategy and Outlook Financial Highlights
Slide 8: Distribution License – Asansol, West Bengal
8 Distribution License – Asansol, West Bengal • A Distribution Licensee develops and maintains an efficient, co-ordinated and economical distribution system in his area of supply to increase price competition in retail, improve operational efficiencies and customer service delivery. Operational High
Slide 9: Distribution Franchise - Gaya, Bihar
9 Distribution Franchise - Gaya, Bihar A Distribution Franchisee avails power from a distribution licensee and distributes it to the end consumer, while also maintaining the distribution network. Operational Highlights: • In 2014, IPCL took over the operations in Bodhgaya, Gaya, Manpur, and adjoinin
Slide 10: Wind Energy
10 Wind Energy • IPCL has over a decade of experience in operating wind energy projects. • The company operates these projects on an asset light structure, where in it exclusively operates the wind farms for a fixed lease payment. • All projects have secured long term PPAs. • The company ensures ene
Slide 11: Solar Power
11 Solar Power Seebpore, West Bengal Rudrapur, Uttarakhand • IPCL in association with West Bengal Green Energy Development • IPCL acquired, implemented and commissioned a 36 MW Solar Corp Ltd. set up a Photo Voltaic Solar Power Plant in 2008 Power Plant in Rudrapur, Uttarakhand with a secured long-t
Slide 12: Value added services
12 Value added services • Entered IPCL hasinto an agreement entered With into a 50:50 JVGermany-based, with Germany based Uniper to Kraftwerke Uniper About Uniper establish GmbH toaundertake 50:50 jointvalue venture, Indiaservices added Uniper Power Services for power plants across the • Uniper is a
Slide 13: Thermal Power
13 Thermal Power IPCL has a total coal-based Thermal Power generation capacity of 1,312 MW in Haldia, West Bengal West Bengal and Andhra Pradesh. All major clearances Plants located at strategic obtained locations IPCL Advantage Highly efficient equipment Low per MW debt Haldia, West Bengal Hiranmay
Slide 14: Thermal Power
14 Thermal Power Meenakshi Energy Ltd., Nellore Nellore, Andhra Pradesh • In 2016, IPCL acquired Meenakshi Energy Ltd, a Thermal Power plant from a French company, Engie, with 300 MW of operational capacity and 700 MW of upcoming capacity. • It is located in Krishnapatnam Port area in Nellore, Andhr
Slide 15: Agenda
15 Agenda Company Overview Business Highlights Strategy and Outlook Financial Highlights
Slide 16: Strategy
16 Strategy • Grow organically and inorganically 1 Distribution • Leverage expertise and experience of distribution business to achieve higher profits • Expand distribution through open access and parallel license models • In collaboration with Uniper, service the power value chain (O&M and other se
Slide 17: Distribution: Landscape
17 1. Distribution : Landscape Reliability Region Area T&D Loss % Index Ahmedabad & 408 Sq. Kms. 6.15% NA Surat Private Operator 1 Bhiwandi & 942 Sq. Kms 22.22% NA Agra Sub Urban Private Operator 2 Mumbai 400 Sq. Kms 9.50% 99.98% Private Operator 3 NCR 950 Sq. Kms 11.70% 99.70% Private Operator 4 Ko
Slide 18: Opportunities In Distribution
18 1. Opportunities In Distribution • Electricity Distribution in India India T&D and AT&C Losses (2005-15) • PPP opportunities exist in Distribution area to (Source: Bureau of Energy Efficiency of India) • Improve T&D Loss levels 40 T&D(%) AT&C(%) • Develop network infrastructure 34.3 • Infuse priv
Slide 19: Services Opportunity
19 2. Services Opportunity Opportunities: IPCL has formed a JV with global MNC giant, Uniper, for providing value added services to power companies in India • In India, all thermal plants combined spend approximately 60,000 Cr** on value added services. • Uniper group owns and operates 40GW portfoli
Slide 20: Increasing Presence in Renewables
20 3. Increasing Presence in Renewables Electricity Generation Mix (TWh) Rapid Increase in Solar & Wind Government Targets for Expansion Power Plant Installations 6000 Imports 23.4% 35 Total Installed 2022 target Source 30 Capacity (MW)* (MW) 5000 Renewables 25 In GW 20 Solar power 18,455 1,00,000 H
Slide 21: Building a Low Debt Thermal Portfolio
21 4. Building a Low Debt Thermal Portfolio Energy Demand & Supply in MU India: Thermal Power 14,00,000 Energy Demand Energy Supply 12,00,000 • As of September 2017, total thermal installed capacity in the country 10,00,000 stood at 219.45 GW 8,00,000 6,00,000 • ~35% thermal power capacity in India
Slide 22: Key Strengths
22 Key Strengths With 9 decades of experience, the company has developed a deep understanding and reputation in the power business JV with Uniper, a global power utility company with more than 40 GW of power assets, to seize significant business opportunities in O&M Backward integration to gear up f
Slide 23: Agenda
23 Agenda Company Overview Business Highlights Strategy and Outlook Financial Highlights
Slide 24: Financial Highlights
24 Financial Highlights Income*(INR Mn) and EBITDA margins (%) PAT(INR Mn) and PAT Margins (%) Cash Profit (INR Mn) 7,600 17.7% 20% 500 5.1% 5.1% 6% 700 7,400 5% 13.4% 13.6% 12.6% 400 4.2% 4.1% 600 7,200 15% 11.0% 3.4% 4% 7,000 300 500 6,800 10% 3% 6,600 200 400 2% 6,400 5% 6,592 6,975 7,201 7,423 7
Slide 25: Capital Market Information
25 Capital Market Information-WIP Share Price Performance (1st Mar ,2018) 15.00% 5.00% -5.00% -15.00% 06-Mar-17 06-Apr-17 06-May-17 06-Jun-17 06-Jul-17 06-Aug-17 06-Sep-17 06-Oct-17 06-Nov-17 06-Dec-17 06-Jan-18 06-Feb-18 DPSC NIFTY 500 Price Data (As on 1st Mar, 2018) Share Holding Pattern (1st Mar
Slide 26: Annexure A: Detailed Financials
ANNEXURE A: DETAILED FINANCIALS
Slide 27: Consolidated Income Statement
27 Consolidated Income Statement Particulars (INR. Mn) FY13 FY14 FY15 FY16 FY17 Total Income* 6,592 6,975 7,201 7,378 7,503 Operating Expenses 5,867 6,038 6,220 6,446 6,177 EBITDA 725 937 981 932 1,326 EBITDA Margin (%) 11.00% 13.43% 13.62% 12.63% 17.67% Finance Cost 190 347 455 504 734 Depreciation
Slide 28: Consolidated Balance Sheet
28 Consolidated Balance Sheet Particulars (INR. Mn) FY14 FY15 FY16 FY17 Particulars (INR Mn) FY14 FY15 FY16 FY17 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non-current Assets Share Capital – Equity 1,578 10,470 10,821 11,239 Fixed Assets Reserves & Surplus 8,462 - - - Tangible Assets 3,046 4,19
Slide 29: Standalone Income Statement
29 Standalone Income Statement Particulars (INR. Mn) FY13 FY14 FY15 FY16 FY17 H1-FY18 Total Income* 6,592 6,975 6,292 5,804 4,694 2,273 Operating Expenses 5,867 6,033 5,329 5,003 3,550 1,727 EBITDA 725 942 963 801 1,144 546 EBITDA Margin (%) 11.00% 13.50% 15.30% 13.80% 24.36% 24.02% Finance Cost 190
Slide 30: Standalone Balance Sheet
30 Standalone Balance Sheet Particulars (INR. Mn) FY14 FY15 FY16 FY17 H1-FY18 Particulars (INR Mn) FY14 FY15 FY16 FY17 H1-FY18 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non-current Assets Share Capital – Equity 974 974 974 974 974 Fixed Assets Other Equity 8,467 8,886 9,224 9,621 9,692 Tangibl
Slide 31: Annexure B: Industry Overview
ANNEXURE B: INDUSTRY OVERVIEW
Slide 32: Power Sector Value Chain
32 Power Sector Value Chain Generation Transmission Distribution Consumers Hydro Thermal Step down Wind transformer Step up Solar transformer Nuclear Buy Energy Exchanges Sell Generation Transmission Distribution Thermal Wind Solar Hydro Nuclear India 220 GW 33 GW 14 GW 49 GW 6 GW 3,80,402 cKm 7,82,
Slide 33: Energy Sector - India
33 Energy Sector - India Thermal: Renewables: O&M: Distribution: • As of September 2017, total thermal • The 2026 forecast for India's non- • The ageing of the fleet of thermal • With the introduction of reforms and installed capacity in the country hydro renewable energy capacity power plants is re
Slide 34: Favourable Policy Environment
34 Favourable Policy Environment All the government policies will lead to a more robust power network leading to a growth in demand for power boosting the power sector value chain Ujwal DISCOM Assurance Yojana (UDAY) Integrated Power Development Scheme (IPDS) • Scheme to improve financial health of
Slide 35: Disclaimer
35 Disclaimer India Power Corporation Limited Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opi