Orient Green Power Company Ltd · NSE:GREENPOWER
Orient Green Power — H1 FY2020 Earnings Presentation
25 slides from Orient Green Power's earnings presentation, Nov 8, 2019
Slide 1: Investor Presentation cover letter to stock exchanges
08th November 2019 The BSE Limited The National Stock Exchange Corporate Relations Department, of India Limited P.J. Towers, Department of Corporate Services, Dalal Street, Exchange Plaza, 5th Floor, Mumbai-400 001. Bandra-Kurla Complex, Scrip Code: 533263 Mumbai-400 051. Scrip Code: GREENPOWER Dear
Slide 2: Leading Renewable Energy Generation Company
Leading Renewable Energy Generation Company
Slide 3: 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 4: Index
Index Transformation Strategy & Operational Progress Key Developments: H1 FY20 Financial Highlights Operational 4 Outlook & Highlights Regulatory Appendix: ` Overview Financial 11 Statements 13 16 18 22 3
Slide 5: Transformation Strategy & Operational Progress
Transformation Strategy & Operational Progress
Slide 6: OGPL Transformation
OGPL Transformation Phase IV • Focus on optimising performance of Wind business Accelerated Growth and aiming for leadership in renewable • Sale of Biomass business – removal of drag on business performance (FY18 onward) • Transfer of Biomass Debt – reduction in Interest costs energy sector in India
Slide 7: High Potential disrupted by external factors
High Potential disrupted by external factors In Rs. cr EBITDA Revenues 461 433 402 385 384 305 338 309 293 307 302 230 213 246 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Finance Cost Depreciation 169 136 136 124 136 277 114 267 235 166 205 199 178 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Cash Profit Pro
Slide 8: What has changed in recent times
What has changed in recent times Improvement in grid evacuation level 96.8 Increased frequency bandwidth for 95.8 96.3 95.7 95.5 95.3 renewables 94.8 93.9 Phase-wise shutting down of thermal power 93.1 plants during the wind season Request for expedition of 1,000 MW green energy corridor to he
Slide 9: Supported by Improvement in REC Mechanism
Supported by Improvement in REC Mechanism Traded REC Revenue INR Crs 78 • Zero stock of issued RECs as of Sep 31, 2019. 38 32 • Maintaining of zero stock level since 28 28 Apr’2018. 19 • Amount held in CERC - Rs.21 Crore • The Supreme Court has granted stay in respect of floor price for REC’s FY15 F
Slide 10: Focus on Debt Reduction
Focus on Debt Reduction Debt (Rs. Cr) Interest Expense (Rs. Cr) 2,159 2,104 1,978 1,887 286 278 265 267 1,574 1,513 211 165 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 Interest / Revenue (%) EBITDA / Interest (x) 70% 64% 60% 58% 59% 49% 1.41 1.48 1.10 0.81 0.84 0.77 FY14 FY15 FY16 FY
Slide 11: Resulting in Improved Profitability
Resulting in Improved Profitability EBITDA (Rs. Cr) EBIT (Rs. Cr) 179 176 293 300 243 246 124 133 215 232 72 8 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 PAT (Rs. Cr) Cash Profit (Rs. Cr) FY14 FY15 FY16 FY17 FY18 FY19 (33) (71) (96) 86 81 (188) 25 (233) (340) (50) (47) (63) FY14 FY1
Slide 12: Key Developments: H1 FY20
Or Key Developments: H1 FY20
Slide 13: Key Developments – H1 FY20
Key Developments – H1 FY20 Wind Business – Challenging macros decelerates business momentum Variation in Wind patterns coupled with excessive monsoon and lower off take from certain state Discoms impacted wind generation and subsequently financials during the period under review On a structural
Slide 14: Financial Highlights
Financial Highlights
Slide 15: H1FY20 Consolidated Financial Performance
H1FY20 Consolidated Financial Performance In Rs. Mn H1 FY20 H1 FY19 Continued Operations: Revenue 2,295 2,491 EBITDA 1,839 2,044 EBITDA % 80.1% 82.1% EBIT 1,270 1,456 EBIT % 55.3% 58.5% Profit / (Loss) before tax 485 374 Discontinued Operations PBT (99) (48) Consolidated Profit / (Loss) before tax 3
Slide 16: Key Financial Highlights – H1 FY20
Key Financial Highlights – H1 FY20 Wind Business: Relative soft performance amid challenging business environment – wind variability, extended monsoon and lower off-take by certain SEBs. Performance would have been much better had it not been for the above factors – lost 558 lakhs units owing to
Slide 17: Operational Highlights
Or Operational Highlights
Slide 18: Wind Operations
Wind Operations Unit of Particulars H1 FY20 H1 FY19 State Capacity (MW) Measurement Capacity (incl. overseas Tamil Nadu 308.3 Mw 425 425 capacity) Andhra Pradesh 75.40 Units Generated (Gross) Mn 457 513 Gujarat 29.2 Annualized PLF % 24.5 27.5 Karnataka 1.25 Average Gross Realisation (before charges
Slide 19: Outlook & Regulatory Overview
Outlook & Regulatory Overview
Slide 20: Outlook
Outlook Near term challenges to persist; long term view remains constructive – Sector headwinds - low wind season, lower off-take from certain state SEBs and delayed payment from DISCOMs may pose near term challenges – Long term view remains positive - Growth conducive policies by the Government i
Slide 21: Renewable Energy Certificates
Renewable Energy Certificates H1 FY20 continued to witness strong buoyancy in the REC market on the back of steady demand – Demand continued to outstrip supply, resulting in higher yields – Average price realization at Rs.1,547 Certificate during the first half as against Rs.1,102 Certificate duri
Slide 22: Regulatory & Market Developments
Regulatory & Market Developments DERC penalizes state DISCOMs over RPO non-compliance – Delhi Electricity Regulatory Commission has penalized the state discoms TYPDL, BRPDL, BYPDL for non-compliance of RPO obligations for consecutive three years i.e. FY 13-14, FY 14-15, FY 15- 16 – Delhi is the se
Slide 23: Appendix: Financial Statements
Appendix: Financial Statements
Slide 24: Financial Performance – H1 FY20 (Consolidated – IND-AS)
Financial Performance – H1 FY20 (Consolidated – IND-AS) Rs. Million Particulars H1 FY20 H1 FY19 Continuing Operations Sale of Power 1,951 2,166 Other Operating Income 325 241 Total Income 2.276 2,407 Total Operating Expenditure 456 448 Operational EBITDA 1,820 1,959 EBITDA (%) 79.9% 81.4% Other Inco
Slide 25: 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 / 1219 Email: mayank@cdr-india.com suraj@cdr-india.com
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