Ge Power India Ltd. · NSE:GVPIL
Ge Power India — Q1 FY2024-25 Earnings Presentation
29 slides from Ge Power India's earnings presentation, Aug 12, 2024
Slide 1: GE Power India Limited filing letter for earnings call
GE Power India Limited CIN- L74140MH1992PLC068379 Corporate Office: Axis House, Plot No I-14, Towers 5 & 6, Jaypee Wish Town, Sector 128, Noida, Uttar Pradesh – 201304 T+91 0120 5011011 | F +91 0120 5011100 Registered Office: Regus Magnum Business Centers, 11th floor, Platina, Block G, Plot C-59, BK
Slide 2: Earnings Presentation Q1 2024-25 Results Disclaimer
GE POWER INDIA LIMITED, EARNINGS PRESENTATION Q1 2024-25 Results Disclaimer • This presentation has been prepared solely for the use at analyst/ investor presentation. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the follow
Slide 3: Contents
Contents Executive Summary 01 FY 2024-25 wins 02 Financials 03 Annexures 04 Q/A 05 © 2024 GE Power India Limited. All rights reserved. 2
Slide 4: Executive Summary Q1 2024-25
Executive Summary Q1 2024-25 TITLE 1 SLIDE HEADLINES • Starting this financial year with GEPIL strategy translating into orders and favorable MAY BE 2 LINES sales mix • Strong quarter for Core Services and FGD EP orders • Third consecutive quarter of positive EBITDA supported by claims Optional subt
Slide 5: FY 2024-25 wins
FY 2024-25 wins Core service Service upgrades FGDs Durgapur parts Brownfield, Equipment Under Execution (MINR75) Generators Projects Projects • SS Pressure Vessel (delivery in • Harduganj Generator Rotor • R&M LMZ ST (Wanakbori 1&2) • FGD Eqt. for Brownfield – total Aug’24)equipment for Steel Plant
Slide 6: Financials
FINANCIALS © 2024 GE Power India Limited. All rights reserved. 5
Slide 7: Order Intake- Q1 Orders
Order Intake- Q1 Orders ₹ Crores 1038 • Steam Core Service ordering growth ~ 7% QoQ • EP FGD order- JPVL Nigrie & Bina of ~INR 775 Cr. 191 • Backlog INR 3,917 Cr at the end of Q1 FY 2024-25 Q1 2023-24 Q1 2024-25 © 2024 GE Power India Limited. All rights reserved. 6
Slide 8: Revenue and PBT- Q1 FY 2024-25
Revenue and PBT- Q1 FY 2024-25 ₹ Crores Revenue • Change in Sales Mix - higher services sales and lower FGD EPC 424 430 Q1 2023-24 Q1 2024-25 Profit Before Tax • Positive one-time impacts in Q1 FY 2024-25: o Sipat fire incident provision of INR 69 Cr in Q1 2023-24 -11 -136 o EOT claim of Tehri of IN
Slide 9: Annexures and Disclosures
ANNEXURES AND DISCLOSURES © 2024 GE Power India Limited. All rights reserved. 8
Slide 10: Disclosure dated July 10th, 2024 made by GEPIL
Disclosure dated July 10th , 2024 made by GEPIL © 2024 GE Power India Limited. All rights reserved. 9
Slide 11: Disclosure dated July 25th, 2024 made by GEPIL
Disclosure dated July 25th , 2024 made by GEPIL © 2024 GE Power India Limited. All rights reserved. 10
Slide 12: © 2024 GE Power India Limited. All rights reserved.
© 2024 GE Power India Limited. All rights reserved. 11
Slide 13: GE Vernova
GE VERNOVA
Slide 14: Investor Meet Deck as presented on July 18th, 2024
INVESTOR MEET DECK AS PRESENTED ON JULY 18TH , 2024 © 2024 GE Power India Limited. All rights reserved. 13
Slide 15: Investor Meet Disclaimer
GE POWER INDIA LIMITED, INVESTOR MEET Disclaimer • This presentation has been prepared solely for the use at analyst/ investor presentation. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations- • The forw
Slide 16: Contents
Contents Context GEPIL Strategy 01 06 Business Strategy- since year Recent wins 02 FY 2019-20 07 Key Dynamics- GEPIL Hydro 03 08 Recap Market update- GEPIL Hydro 04 09 Annexures Key Dynamics- GEPIL Gas 05 © 2024 GE Power India Limited. All rights reserved. 15
Slide 17: Context
Context Dynamics of GEPIL net worth, order backlog and working capital Particulars Sep'21 Mar'22 Sep'22 Mar'23 Sep'23 Mar'24 KEY TAKEAWAY Net worth 8,873 6,729 5,012 2,267 271 574 Potential impact of negative net Credit rating A+ (neg) A (neg) A- (neg) BBB+ (neg) BBB (neg) BBB (neg) worth - working
Slide 18: Business Strategy since year FY 2019-20
Business Strategy since year FY 2019-20 Key messages • Focus on high margin, cash accretive deals with faster cash conversion cycle • De-risk EPC and focus on EP • EPC has long gestation project cycles; o Hydro project cycle is ~ 10+ years o FGD EPC project cycle is ~5-8 years o FGD EP project cycle
Slide 19: Key Dynamics: GEPIL Hydro
Key Dynamics GEPIL Hydro Revenue & Profit/ (Losses) Challenges • Aggregate cash consumption projection of ~4898 MINR in FY 25 and FY26. • Long gestation bids with high risk commercial profile eg – Upper Silleru • Significant delays in existing projects, locking 6,988 MINR of bank guarantee limits as
Slide 20: Market update: GEPIL Hydro
Market update GEPIL Hydro DESCRIPTION HYDRO w/o PSP PSP Major reasons for slippage : Installed base (till date) (A) 47 GW 4.7 GW • Geology, hydrology, topology Capacity addition as 20 GW 22.3 GW • Critical EM works planned (2031-32) (b) (~15 GW- Under (7.7 GW- Under Construction Construction • Delay
Slide 21: Key Dynamics: GEPIL Gas
Key Dynamics GEPIL Gas Revenue & Profit/ (Losses) Challenges • Due to lack of consistent demand, we have optimized the head count by ~48% between March 2021 and March 2024 • Skillsets are limited to GEV technology • Non-strategic and single customer is GEV, non-core to the overall competence of the
Slide 22: GEPIL strategy
GEPIL strategy FGDs Core service Service upgrades Brownfield, Equipment Durgapur parts Parts , Service and Repair of Upgrades of Boiler , Supply of Boiler pressure parts, Piping Products: Supply of Flue-gas Boiler, Turbine, Generator, Turbine & Air Quality Mills & Auxiliaries , Firing Systems to Air
Slide 23: Recent wins
Recent wins Core service Service upgrades FGDs Durgapur parts Brownfield, Equipment Generators Projects Projects Under Execution (MINR75 ) • Harduganj Generator Rotor • R&M LMZ ST (Wanakbori 1&2) FGD Eqt. for Brownfield – total • SS Pressure Vessel (delivery in • JITPL Spares and Overhaul 2,434 MINR
Slide 24: Recap
Recap Business strategy since FY 2019-20 • Focus on high margin, cash accretive deals with faster Higher profitability cash conversion cycle • De-risk EPC and focus on EP • EPC has long gestation project cycles; o Hydro project cycle is ~ 10+ years Lower project duration o FGD EPC project cycle is ~
Slide 25: © 2024 GE Power India Limited. All rights reserved.
© 2024 GE Power India Limited. All rights reserved. 24
Slide 26: © 2024 GE Power India Limited. All rights reserved.
© 2024 GE Power India Limited. All rights reserved.
Slide 27: Annexures
ANNEXURES © 2024 GE Power India Limited. All rights reserved. 26
Slide 28: Key extracts of Slump Sale: GEPIL Hydro
Key extracts of Slump Sale GEPIL Hydro • Net liability of INR 2,140.9 million as on March 31, 2024. • The business is projected to consume cash by ~INR 4,897.7 million over the next two years, which is creating a pressure on cash consumption and debt position. • The Board has decided to sell it to G
Slide 29: Key extracts of Slump Sale: GEPIL Gas
Key extracts of Slump Sale GEPIL Gas • Net liability of INR 380.0 million as on March 31, 2024. • The Board has decided to sell the Gas Power Business to GE Renewable Energy Technologies Private Limited at INR 438.6 million, representing the fair market value as determined by the independent valuer.