Orient Green Power Company Ltd · NSE:GREENPOWER
Orient Green Power — Q1 FY18 Earnings Presentation
29 slides from Orient Green Power's earnings presentation, August 2017
Slide 1: Leading Diversified Renewable Energy Generation Company
Leading Diversified 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: Q1 FY18 Financial Highlights Operational 4 Outlook & Highlights Regulatory Appendix: ` Overview Financial 14 Statements 17 20 23 28 3
Slide 4: Transformation Strategy & Progress
Transformation Strategy & Progress
Slide 5: OGPL Transformation
OGPL Transformation Phase IV • Restructuring of Biomass business Accelerated Growth and aiming for leadership in renewable • Monetizing unviable biomass units (FY18 onward) • Scaling up capacities in Wind business energy sector in India • Working towards refinancing & extending tenure of existing lo
Slide 6: High Potential disrupted by external factors
High Potential disrupted by external factors Capacity addition ..and rising tariffs Wind Biomass Wind Biomass 534 531 521 6.61 510 6.33 6.39 86 106 106 96 5.96 5.95 390 Rs. / Unit 5.21 61 4.84 MW 5.52 5.5 5.44 424 428 425 425 5.07 329 4.62 3.96 4.01 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 M
Slide 7: What has changed in recent times
What has changed in recent times Improvement in grid evacuation level 94.0 94.0 96.0 95.0 Increased frequency bandwidth for 81.8 89.0 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: Improvement in REC Mechanism
Improvement in REC Mechanism REC’s Outstanding in thousands 494 516 420 230 FY14 FY15 FY16 FY17 Traded REC Revenue INR Crs 38 26 28 19 FY14 FY15 FY16 FY17 8
Slide 9: Resulting in improved Financial Metrics
Resulting in improved Financial Metrics Interest Expense Rs.Crs Debt (Rs. Cr) 286 2159 2104 278 1978 265 267 1887 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Interest / Revenue (%) 70% 64% 60% 58% FY14 FY15 FY16 FY17 9
Slide 10: Rationale – Segregation of Biomass business
Rationale – Segregation of Biomass business 276 223 • Biomass business contributed to about 30 to 145 (Rs. Cr) 40% of the Co.’s losses over last 3 years 66 101 61 FY15 FY16 FY17 Total loss Biomass loss 65% 67% 71% 224 • Average EBITDA margin of wind business has been 68% as against negative 3% for b
Slide 11: Transporting OGPL to a path of profitability
Transporting OGPL to a path of profitability Total Revenue (Rs. Cr) EBITDA (Rs. Cr) 500 293 461 402 243 214 110 150 129 154 87 86 111 59 FY15 FY16 FY17 Q1 FY15 Q1 FY16 Q1 FY17 Q1 FY18 FY15 FY16 FY17 Q1 FY15 Q1 FY16 Q1 FY17 Q1 FY18 Depreciation (Rs. Cr) Interest (Rs. Cr) 207 286 278 179 267 168 42 44
Slide 12: Green shoots – on the back of strategic and structural initiatives
Green shoots – on the back of strategic and structural initiatives Conducive environment Significant improvement of Grid Availability in TN – frequency of grid back down has reduced substantially and for Wind consistent grid availability is expected to sustain henceforth Business Restarted 4 pla
Slide 13: Key Developments: Q1 FY18
Or Key Developments: Q1 FY18
Slide 14: Key Developments – Q1 FY18
Key Developments – Q1 FY18 Improved Performance on the back of sustained Momentum Reported strong revenue growth of 19% (Q-o-Q) in Q1FY18 on the back of further improvement in performance of the Wind business Units of Power Generated and Evacuated are higher by 17% (including 30% increase in win
Slide 15: Key Developments – Q1 FY18
Key Developments – Q1 FY18 Deleveraging Balance Sheet Sale of Individual Biomass Assets have reduced respective loans taken against those assets and proposed sale of remaining assets in Biomass Business to result in further reduction of debt by 274 Cr Have shifted a sizeable proportion of debt i
Slide 16: Financial Highlights
Financial Highlights
Slide 17: Q1FY18 Financial Performance
Q1FY18 Financial Performance In Rs. Mn Wind Biomass TOTAL Q1 FY18 Q1 FY17 % Q1 FY18 Q1 FY17 % Q1 FY18 Q1 FY17 % REVENUES 1306 998 31% 232 291 -20% 1538 1289 19% EBITDA 1060 801 32% 41 64 -36% 1101 865 27% EBITDA% 81% 80% 18% 22% 72% 67% EBIT 747 465 61% -37 -23 61% 710 442 61% EBIT% 57% 47% -16% -8%
Slide 18: Key Financial Highlights – Q1 FY18
Key Financial Highlights – Q1 FY18 Wind Business: Revenue for Q1 FY18 grew by 31% to Rs. 1306 mn compared to Rs. 998 mn; EBITDA improved to Rs. 1061 mn from Rs. 801 mn during the corresponding period last year. Strong performance by Wind business was due to: – Significant improvement in grid ava
Slide 19: Operational Highlights
Or Operational Highlights
Slide 20: Wind Operations
Wind Operations Unit of Particulars Q1 FY18 Q1 FY17 Measurement Capacity (incl. overseas capacity) Mw 425 425 Units Generated (Gross) Mn 249 192 Annualized PLF % 26.8 20.7 Average Gross Realisation (before charges and Rs./ Unit 4.91 5.05 without REC) State Capacity (MW) Tamil Nadu 308.3 Andhra Prade
Slide 21: Biomass Operations
Biomass Operations Unit of Q1 Q1 Particulars Measurement FY18 FY17 Capacity (operational during the year) Mw 35.5 58.0 Units Exported Mn 28.2 43.8 PLF % 40.5 21.1 Average Realisation Rs./ Unit 6.26 6.21 Specific Fuel Consumption per unit Kg/ Unit 1.51 1.43 Fuel Cost Rs./ Unit 3.60 3.31 Rajasthan O&M
Slide 22: Outlook & Regulatory Overview
Outlook & Regulatory Overview
Slide 23: Outlook - Wind
Outlook - Wind Improving macros – structurally positive for the business – Sharp improvement in grid infrastructure a structurally positive development for the business enabling smooth & greater transmission of power from generating unit to grid for distribution – Encouraging operating environment
Slide 24: Outlook - Biomass
Outlook - Biomass Board approves transfer of Biomass Assets into Subsidiary – Board of Directors has approved the sale of the bulk of its Biomass Operations to its Promoter Company – SVL Ltd along with its subsidiaries • Given the accumulated losses and limited asset base it was felt that demerger
Slide 25: Renewable Energy Certificates
Renewable Energy Certificates Discontinuation of trading in RECs following Central Electricity Regulatory Commission (CERC) reduced REC prices to a historic low. The order was challenged by REC generating companies in the apex court and in the Appellate Tribunal of Electricity (APTEL) The Suprem
Slide 26: Regulatory & Market Developments
Regulatory & Market Developments TANGEDCO evacuated record wind power (5,000 Mw+) in the month of July, a national and state record. Wind power evacuation has been better in recent years due to better forecast. (Source) The Andhra Pradesh Electricity Regulatory Commission (APERC) proposed a tari
Slide 27: Appendix: Financial Statements
Appendix: Financial Statements
Slide 28: Financial Performance – Q1 FY18 (Consolidated – IND-AS)
Financial Performance – Q1 FY18 (Consolidated – IND-AS) Rs. Million Q1 FY18 Q1 FY17 Q-o-Q (%) Sale of Power 1291 1,136 14 Other Operating Income 164 127 29 Total Income 1455 1,263 15 Expenditure Cost of biomass fuel 100 145 -31 O&M and other costs 337 279 21 Total Expenditure 437 424 3 Operational E
Slide 29: 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 / 1235 Email: mayank@cdr-india.com suraj@cdr-india.com
Orient Green Power Company — Q1 FY18 Earnings Presentation on 6ix