Techno Electric & Engineering Company Limited · NSE:TECHNOE
Techno Electric & Engineering — Q4 FY2021 Earnings Presentation
46 slides from Techno Electric & Engineering's earnings presentation, July 2021
Slide 1: An Investor Presentation: Quarter Ended March, 2021
AN INVESTOR PRESENTATION Quarter Ended March, 2021
Slide 2: Corporate Overview, Business Segment Review, Financial Review
» Corporate Overview 03 » Business Segment Review 17 » Financial Review 38
Slide 3: Corporate Overview
orate Overview
Slide 4: Powering Value Creation
POWERING VALUE CREATION Techno Electric & Engineering Company Limited (TEECL) is among India’s largest in power-infrastructure companies. It is one of the most attractive proxies of India’s power sector, headquartered in Kolkata. 35+ Years 400+ Projects 25+ Years 500 Professionals of rich experience
Slide 5: Progressing with Confidence
PROGRESSING WITH CONFIDENCE » EPC » Generation » Design to Commissioning » Asset Ownership » Transmission Handover to » Operations and » Distribution Maintenance Maintenance Operation » Industrial Management * TEECL is divesting its renewable energy assets to concentrate more on its core businesses
Slide 6: Progressing with Confidence - Key Milestones
PROGRESSING WITH CONFIDENCE - (Contd.) KEY MILESTONES 1980 2009 2010 Launched EPC Entered renewable Initiated transmission services energy generation Asset Ownership COMPANY OVERVIEW BUSINESS SEGMENT REVIEW FINANCIAL REVIEW
Slide 7: Advancing with Experience and Expertise
ADVANCING WITH EXPERIENCE AND EXPERTISE » Transmission & Distribution » Advanced Metering Infrastructure (Smart Metering) » Balance of plant » Captive waste heat recovery and upto 200 MW of conventional power plant on turnkey basis » Flue Gas Desulfurization Plant » Solutions for power-intensive ind
Slide 8: Advancing with Experience and Expertise
ADVANCING WITH EXPERIENCE AND EXPERTISE » Build Own Operate and Transfer (BOOT) » Build Own Operate and Maintain (BOOM) » Provide annuity income » Capital intensive » Modest ROE » Stable multi-year income/cash flow » In-house EPC business » O&M revenues COMPANY OVERVIEW BUSINESS SEGMENT REVIEW FINAN
Slide 9: Advancing with Experience and Expertise
ADVANCING WITH EXPERIENCE AND EXPERTISE » Capital-intensive » Modest IRR » Multi-year stable income/cash flows » Green Power contributes 10% of total revenues and 34% of total EBIDTA of FY21 COMPANY OVERVIEW BUSINESS SEGMENT REVIEW FINANCIAL REVIEW
Slide 10: Engineering That Is Different
ENGINEERING THAT IS DIFFERENT 26% Build a Transmission network of 400 kV; 253 km transmission line and Substations of 400/220 kV (No. Bays : 8/6) at Kohima, Nagaland on Build, Own, Operate and Maintain (BOOM) basis for 35 years * TEECL has entered into definitive agreement with CLP India private lim
Slide 11: Once a Customer, Always a Customer
ONCE A CUSTOMER, ALWAYS A CUSTOMER TEECL primarily serves CPSUs, state-run utilities The Company follows the operating philosophy of and private sector customers (captive power plant and power distribution system for power intensive industries). Over the years, it » Helped build 50% of India’s natio
Slide 12: Growing Recognition
GROWING RECOGNITION Certificate of appreciation from Best player in 765 KV AIS IEI Industry Excellence Meritorious Performance in JBVNL for 100% electrification in Substation Construction in Award, 2016 Power Sector in 2011-12 by Dhanbad in 2018 India in 2018’ by PGCIL Ministry of Power Awarded Cert
Slide 13: Capable Leadership
CAPABLE LEADERSHIP Qualification » Postgraduate in Management (IIM, Ahmedabad) » Honours graduate in Industrial Engineering Experience » Merchant banker with National Grindlays Bank » Management consultant deputed to BHEL Association with TEECL » Grew TEECL into prominent Indian EPC company in power
Slide 14: Leveraging Opportunities
LEVERAGING OPPORTUNITIES Investment roadmap of industry Policies to influence the power industry » ₹ 2,600 billion total transmission sector » 450 GW total generation capacity target by investments, of which ₹ 1,600 billion in 2022 400 KV and ₹ 1,000 billion in 220 KV » 280 GW total capacity in dema
Slide 15: Utilising Corporate Strength
UTILISING CORPORATE STRENGTH Consistent Ability to embrace Efficient working Rich terrain upgradation to challenges capital management understanding industry-next technology On-time project Cost-effectiveness Partnership with Robust vendor completion large international eco-system manufacturers COMP
Slide 16: Utilising Corporate Strength (Contd.)
UTILISING CORPORATE STRENGTH - (Contd.) Constantly improving Quicker project Recorded low gearing, focus on customer- completion than industry high credit rating, centricity and standards low-cost debt contractual obligations. Delivered most EPC and Management of customer Zero Penalty Record Transmi
Slide 17: EPC
EPC Transmission Asset Ownership Green Power
Slide 18: Delivering Consistently
DELIVERING CONSISTENTLY 68% ₹ 2,500+ million ROCE of EPC as on annual cash surplus 31 March, 2021 ₹ 19,323 million 15% size of order book as on EPC EBIDTA Margin over the 31st March, 2021 last 5 years 24 months 90% revenue visibility Revenue of the total business from EPC as on 31 March, 2021 * We a
Slide 19: Major Domains of Operations
MAJOR DOMAINS OF OPERATIONS » Turnkey solutions to captive power EHV substations » Power distribution systems to power plants intensive industries » EHV substations up to 765 kV (AIS/GIS) » Balance of Plant » Offsite piping systems » STATCOM installation up to 250 MVaR » Oil handling plant process i
Slide 20: Operating Philosophies
OPERATING PHILOSOPHIES » Well-planned projects executed in sync with cash flow and contractual obligations » Focus on PAT/retained cash (not size of order book) » Conservative project management approach » Cash rich; low gearing; income mix (lumpy and annuity) » Zero penalty record; » Marginal worki
Slide 21: EPC Order Book as on 31st March, 2021
EPC ORDER BOOK AS ON 31st March, 2021 Name of the client Amount in mn 22.61% REC Power 4,368.5 ₹ 2,932 million Distribution Co. Ltd ( JKPDD) Generation 16.75% PGCIL 3,236.0 14.67% Damodar Valley 2,835.6 Corporation Total - 10.83% Rampur Sambhal 2,092.0 Transco Ltd., Rampur ₹ 11,206 million 100 (in %
Slide 22: EPC Financials Over the Years
EPC FINANCIALS OVER THE YEARS Revenue (₹ in mn) EBITDA (₹ in mn) FY 20-21 7,916.87 FY 20-21 1,436.42 FY 19-20 7,843.49 FY 19-20 1,403.03 FY 18-19 8,791.51 FY 18-19 1,537.97 FY 17-18 11,733.70 FY 17-18 1,832.87 FY 16-17 12,109.45 FY 16-17 1,812.37 FY 15-16 10,142.75 FY 15-16 1,449.40 FY 14-15 6,680.9
Slide 23: Promising Future Owing To (Contd.)
PROMISING FUTURE OWING TO (Contd.) India is on the verge of a digital explosion and India's Data Centre industry is a crucial enabler to drive the country’s Digital India dream. India has around 375 MW of Data Centre in H12020, The data centre industry revenue in India was US $ 1.2 billion in 2019.
Slide 24: Promising Future Owing To (Contd.)
PROMISING FUTURE OWING TO (Contd.) Working to rapidly establish its stated goal of pan-India universal electricity access, the government of India is enabling Smart Grids which can offer affordability and other benefits to consumers. The first step towards realizing Smart Grids is the implementation
Slide 25: Promising Future Owing To (Contd.)
PROMISING FUTURE OWING TO (Contd.) Pursuant to Government of India, Gazette notification of 7th December, 2015 all Thermal Power Plants need to limit their sulphur emission. » We have received contract of FGD for 500 MW (1 x 500 MW) Bokaro thermal power project of DVC for Rs 3190 million » Plan of v
Slide 26: Promising Future Owing To
PROMISING FUTURE OWING TO Government has a target of implementation of 175 GW of renewal energy capacity out of which bids for 50 GW has been done, bidding process for next 66.5 GW is in process and the time lines for last lot is yet to be decided. The finance minister announced, ₹ 15322 crores to b
Slide 27: Promising Future Owing To (Contd.)
PROMISING FUTURE OWING TO (Contd.) Bagged two trans-border projects » UGANDA Design, supply and erection of 160 km 132 Kv double circuit Mbarara - Nkendao transmission line and associated substations worth $18 mn crores » AFGHANISTAN The Afghanistan Breshna Sherkat (DABS), Kabul, Afghanistan for des
Slide 28: Transmission Asset Ownership
EPC Transmission Asset Ownership Green Power
Slide 29: Building Partnerships Across Various PPP Projects
BUILDING PARTNERSHIPS ACROSS VARIOUS PPP PROJECTS Kohima – Nagaland » Implementing agency KMTL 74:26 Kalpataru Power Transmission Ltd. and Techno Electric. 400 kV transmission system of 253 km transmission line with Substations of 400/220 kV at New Kohima (No. Bays : 8/6) to be completed by May 2020
Slide 30: Project Details – Commissioned & Under Operations
PROJECT DETAILS – Commissioned & Under Operations » Build, Own, Operate and Maintain (BOOM) transmission network. Nagaland » Designing, constructing, erecting, completing and commissioning responsibility » Financial closure has been achieved; expected date of commissioning in May, 2020 » 400 kV tran
Slide 31: Project Details – Completed and Exited
PROJECT DETAILS – Completed and Exited » Project commissioned in record 15 months Haryana » 400 kV transmission system comprises Double Circuit Quad Moose Line » Extending from Jharli to Kabulpur, Rohtak (35 KM) » Extending from Kabulpur to Dipalpur, Sonepat (64 KM) » Two substations of 400/220 kV o
Slide 32: Project Details – Completed and Exited
PROJECT DETAILS – Completed and Exited » Build, Own, Operate and Maintain (BOOM) transmission network Punjab » Designing, constructing, erecting, completing and commissioning responsibility » Financial closure achieved at competitive rates; commissioned in June, 2016 » 1,000 MVA evacuation capacity,
Slide 33: Creating Value for TEECL
CREATING VALUE FOR TEECL Jhajjar KT – Haryana – Patran – Punjab – (Completed Kohima– Nagaland–(Commissioned (Completed and Exited) and Exited) & Under Operations) » ₹ 4,440 million project (debt » ₹ 2,000 million project with Debt » ₹ 13,000 million project with Debt Equity and equity) Equity ratio
Slide 34: Encouraging Scope
ENCOURAGING SCOPE » Leverage EPC knowledge as transmission asset complements EPC » Enhance valuation and profitable encashment opportunities with long-term annuity incomes » Generate operations and maintenance revenues » Improve scale and stability with asset ownership » Reduce requirement to bid ag
Slide 35: Green Power
EPC Transmission Asset Ownership Green Power
Slide 36: Ensuring Sustainability
ENSURING SUSTAINABILITY Key highlights of the segment » Sold 44.45 MW of wind power assets at an effective valuation of ₹ 2,150 million during the Q1 FY 2016 » Sold 33 MW of wind energy assets at an effective valuation of ₹ 1,650 million in January 2017 » Exited the assets at the same price at which
Slide 37: Current Asset Overview
CURRENT ASSET OVERVIEW Simran Wind Project Limited Capacity 18 MW 111.90 MW Date of Acquisition/ During 2009-10 March 31, 2011 - February 24, 2012 Commissioning Location Karnataka Tamil Nadu (111.90 MW) Capacity 12 turbines x 1.5 MW each 48 turbines x 1.5 MW each; 19 turbines x 2.1 MW each PLF 18% -
Slide 38: Divesting Green Energy Assets
DIVESTING GREEN ENERGY ASSETS Revenue (₹ in mn) EBITDA (₹ in mn) PAT (₹ in mn) FY 20-21 1,000.35 FY 20-21 725.08 FY 20-21 325.32 FY 19-20 918.17 FY 19-20 758.85 FY 19-20 354.21 FY 18-19 1,094.92 FY 18-19 954.12 FY 18-19 467.00 FY 17-18 1,241.85 FY 17-18 1,106.15 FY 17-18 682.05 FY 16-17 1,457.73 FY
Slide 39: India's Data Centre industry is expected to grow significantly
As one of the world’s largest data subscriber population adapts to a new digital life, India’s Data Centre industry is expected to grow significantly.
Slide 40: Aligned to the Big Picture
ALIGNED TO THE BIG PICTURE Vision To create multiple ultra-scalable, hyper-density Data Centres. » Develop hyper-density Data Centres of 250 MW by FY2026 across India » Build an ultra-scalable, hyper-density Data Centre of 30 MW in Chennai, Tamil Nadu by FY2022 » Build an Data Centre of 20 MW in Kol
Slide 41: Aligned to the Big Picture (Contd.)
ALIGNED TO THE BIG PICTURE (CONTD.) Objective Project Phoenix » Set up a 30 MW Data Centre in Chennai for and investment of ₹ 900 crores (approx.) » Powered by captive wind energy source of 111.9 MW at Tamil Nadu » Build Data Centre by leveraging our EPC capabilities » Operate and maintain the non I
Slide 42: Financial Review
@...: Review
Slide 43: Analysing Quarter-on-Quarter Financials – Q4FY21
ANALYSING QUARTER-ON-QUARTER FINANCIALS – Q4FY21 Revenue EBITDA (₹ in mn) (₹ in mn) 2147.98 189.632 1140.8 64.681 EBITDA Margin Other income (%) (₹ in mn) 8.83 86.04 5.67 89.87 Profit after tax Interest Cost (₹ in mn) (₹ in mn) 88.14 23.03 44.46 11.90 Q4FY21 Q4FY20 COMPANY OVERVIEW BUSINESS SEGMENT
Slide 44: Annual Financials
ANNUAL FINANCIALS EBIT Revenue (₹ in mn) (₹ in mn) EPC EPC 1449.01 7916.87 7843.49 1386.54 Energy 326.31 Energy 1000.35 360.11 918.17 PAT Other Income (₹ in mn) (₹ in mn) PAT Other Income (Normal) 2,044.42 397.92 1,778.11 449.30 Other Income (One time) 438.00 0.00 March 2021 March 2020 1. Our EPC re
Slide 45: Annual Financials - Balance Sheet
ANNUAL FINANCIALS - (Contd.) Balance Sheet 2020 2021 SOURCES OF FUNDS Shareholders’ funds 14,964 16,162 Minority interest --- --- Loan funds --- --- Deferred tax liabilities 1,129 1,150 Other liabilities and provisions 478 407 Total 16,572 17,719 APPLICATION OF FUNDS Net fixed assets 5,243 5,000 Inv
Slide 46: Corporate Office: 1B Park Plaza, Kolkata
TECHNO ELECTRIC & ENGINEERING COMPANY LIMITED Corporate Office: 1B Park Plaza, 71 Park Street, Kolkata 700 016
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