India Power Corp. Ltd. · NSE:DPSCLTD
India Power — Investor Presentation (January 2018)
43 slides from India Power's investor presentation, January 2018
Slide 1: India Power Corporation Limited Investor Presentation – January 2018
INDIA POWER CORPORATION LIMITED Investor Presentation – January 2018
Slide 2: Who We Are
2 Who We Are India Power Corporation Ltd (IPCL) is a leading, reliable and customer- focused end-to-end energy solutions provider What we do Generation Distribution Services Along with conventional modes of power IPCL is one of the oldest Distribution Through its partnership with Uniper, a generatio
Slide 3: Growing Trajectory: Demand & Generation
3 Growing Trajectory: Demand & Generation Rising Energy Demand (TWh) Electricity Generation Mix (TWh) 4712 5000 4500 6000 23.4% 4000 5000 3500 3000 4000 15.0% 2239 2500 Imports Industry 3000 2000 10.2% Renewables 1443 Agriculture 1500 2000 Hydro Commercial 762 5.5% Nuclear 1000 Residential 1000 500
Slide 4: Rising Opportunity In Distribution Sector
4 Rising Opportunity In Distribution Sector • Electricity Distribution in India 25.00% 22.70% T&D Loss Reduction Target* % • PPP opportunities in Distribution area to • Improve T&D Loss levels 20.00% • Develop network infrastructure 13.90% • Infuse private capital investments 15.00% • Provide excell
Slide 5: Opportunities for India Power
5 Opportunities for India Power Drivers Implications Opportunity for IPCL • Scheme such as UDAY for Financial health of • Licensee and franchisee opportunities DISCOMs DISCOMs & GENCOs • Stressed generation assets for acquisition • Banks cleaning up stressed assets • Solar and wind tariff cheaper th
Slide 6: Addressing the Opportunity
6 Addressing the Opportunity INDIA Generation IPCL • About 35% of thermal power capacity in India is more than 25 years old • IPCL’s Thermal, Solar and Wind energy plants are state of the art and less than 4.5 Years on average • Average PLFs of Thermal Power plants are at all-time lows of under 60%
Slide 7: Strategic themes for IPCL
7 Strategic themes for IPCL • Organic and inorganic growth strategies in Distribution and Generation Growth Strategy • To enter the market at its lowest point – prepared for upward swing imminent in next few months Integrated power sector • Collaborate with players across value chain (fuel security
Slide 8: Geographical Presence
8 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 450 MW Thermal Power P
Slide 9: Evolution of IPCL
9 Evolution of IPCL Acquired, developed Dishergarh Power Commissioned Started DPSC name India Uniper Power and implemented 36 Supply Company 24.8 MW Wind Implementing 450 changed to India Services Pvt. Ltd. - MW Solar Power (DPSC) Limited was Power Plant in MW Thermal Power Power Corporation Joint V
Slide 10: Company Overview
10 Company Overview • India Power Corporation Ltd (IPCL), a Kanoria Foundation Company, is a leading and reliable end-to- Revenue (INR Mn) and EBITDA (%) end energy solutions provider. It is headquartered in Kolkata, West Bengal. Revenues EBITDA Margin • The company, over the last nine decades of it
Slide 11: Key Strengths
11 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 12: Board of Directors
12 Board of Directors Hemant Kanoria – Chairman Jyoti Kumar Poddar – Non-Executive Director Shri Hemant Kanoria has over 33 years of experience in industry, trade and financial Shri Jyoti Poddar is a commerce graduate having rich experience of 25 years as an services. He has held the position of Cha
Slide 13: Key Management Personnel
13 Key Management Personnel Sanjeev Seth – Chief Executive Officer Shri Sanjeev Seth joined India Power Corporation Limited (Kanoria Foundation Argha Ghosh – Vice President Co.) from 2016 onwards as President and Chief Executive Officer. He was earlier in Shri Argha Ghosh joined IPCL from 2013 onwar
Slide 14: Awards and Accolades
14 Awards and Accolades NIPM Best Practices Certificate Asian Power Awards 2015 Energize Award for Excellence Energize Award for Excellence National CSR Smart Grid Project of CII Award for Inc 500 ISO Certification Leadership Congress & the year - Asian Power productivity Awards Awards, 2016
Slide 15: Business Overview
INDIA POWER ‘Adding power to life
Slide 16: Power Sector Value Chain
16 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 17: Distribution
DISTRIBUTION INDIA POWER
Slide 18: Distribution License – Asansol, West Bengal
18 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 Hig
Slide 19: Distribution Franchise - Gaya, Bihar
19 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. • The sole objective of a Distribution Franchisee (DF) mode of business is to reduce Aggregate Techni
Slide 20: Distribution Franchise - Gaya, Bihar
20 Distribution Franchise - Gaya, Bihar Average Input Energy (MU) Number of customers Average AT&C Losses Power Availability (hr) 25 800 2,00,000 90% 20 700 75% 1,50,000 60% 15 600 1,00,000 45% 1,93,534 10 500 94,344 30% 82% 46% 50,000 522 706 5 400 15% 14 23 0 300 0 0% Before Takeover After Takeove
Slide 21: Wind Energy
INDIAPOWER ‘Adding power to life
Slide 22: Wind Energy
22 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 23: Solar Energy
INDIA POWER SOLAR ENERGY
Slide 24: Solar Power
24 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. in 2008, has set up a Photo Voltaic Solar Power Plant Power Plant in Rudrapur, Uttarakhand with a secured l
Slide 25: Thermal Power
THERMAL POWER INDIA POWER
Slide 26: Thermal Power
26 Thermal Power IPCL has a total coal-based Thermal Power generation capacity of 1,462 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 Haldia,
Slide 27: Thermal Power – Meenakshi Energy, Nellore
27 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 28: O&M Services
O&M SERVICES
Slide 29: Value added services
29 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 30: The IUPS Advantage
30 The IUPS Advantage Opportunities: Our service offerings • In India, all thermal plants combined spend approximately 60,000 Cr on value added services. Improved Improved Reduced Opex and Reliability efficiency Capex • There is no organized player in this segment who does Reduce downtime Take the p
Slide 31: Industry Overview
INDUSTRY OVERVIEW INDIA POWER ‘Adding power to life
Slide 32: Energy Sector - India
32 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 33: Favourable Policy Environment
33 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 34: Strategic Overview
INDIA POWER ‘Adding power to life
Slide 35: Way Forward
35 Way Forward Distribution business – Power Plant O&M Services Power Generation Low-risk, regulated returns • Ensuring minimal T&D • Continuing dependence on • Emphasis on flexibility of losses by sustained capex coal-based power will technology for on infrastructure stimulate demand for preparedne
Slide 36: Financial Overview
INDIA POWER ‘Adding power to life
Slide 37: Standalone Income Statement
37 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 38: Standalone Balance Sheet
38 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 39: Consolidated Income Statement
39 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 40: Consolidated Balance Sheet
40 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 41: Financial Highlights
41 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 42: Capital Market Information
42 Capital Market Information Share Price Performance (30th October, 2017) 30% India Power Sensex 20% 10% 0% -10% -20% -30% Price Data (As on 30th October, 2017) Share Holding Pattern (30th October, 2017) Face Value (INR) 1.0 Market Price (INR) 33 Public 52 week H/L (INR) 48.6/29.2 40.50% Market Cap
Slide 43: Disclaimer
43 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