Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — FY2019 Earnings Presentation
40 slides from Adani Energy Solutions's earnings presentation, May 28, 2019
Slide 1: Adani Transmission Limited FY 2019 Results Presentation
Adani Transmission Limited FY 2019 Results Presentation 28 May 2019 1
Slide 2: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Transmission Limited (together circumstances on which any such statements are based. Neither the Company nor any of its respective with its subsidiaries, the “Company” or “ATL”) to you solely for your reference and
Slide 3: Table of Contents
Table of Contents 1. Overview 2. Operational Highlights 3. Financial Highlights 4. Summary 5. Appendix
Slide 4: FY Highlights
FY 19 Highlights Operational Financial Strategic Revenue 14,000 • Mumbai distribution 12,000 Transmission Consolidated: • Average Availability • Operational EBITDA of Rs. 10,000 business acquisition 8,000 6,440 99.8% (AEML) fully integrated • Incentive earned Rs. 48 2,857 Cr. (Including Part Yr. 6
Slide 5: Safety and Sustainability
Safety and Sustainability Safety • Robust process of safety management, training and awareness • Certified with OHSAS 18001:2007.Being upgraded to 45001. • Over 16,000 man-hours of Safety awareness and training in FY 19 • Zero fatalities in FY 18 and FY 19 • LTI: Zero in FY 18, and one in FY 19 Comm
Slide 6: Large Addressable Market for Private Players
Large Addressable Market for Private Players Government focus on transmission and distribution sector has opened up a large opportunity for the private sector over next 5 years. Large Opportunity for Transmission Growth in the Significant Private Sector Contribution Expected Next 5 years in Central
Slide 7: Transmission Business: Project Updates
Transmission Business: Project Updates (Rs. In Cr.) Recently commissioned Projects of 2,084 ckt km - Expected FY 20 revenue of Rs.621 cr. Transmission Length Revenue FY Revenue Name COD[1] Counterparty (ckt km) 19 FY 20e STL 25th March 19 348 Centre 4 96 RRWTL 31st March 19 611 Centre - 220 One smal
Slide 8: Operational Highlights
Operational Highlights adani
Slide 9: Transmission Business: Strong Capabilities Underscored by Operating Performance
Transmission Business: Strong Capabilities Underscored by Operating Performance Consistent performance across all operational assets with 99.8% availability and focus on incentive maximization Availability Across Operational Assets (%) Focus on Maximizing Incentives(%) (Average, Min, Max) Normative
Slide 10: Distribution Business: Improvement in performance post acquisition
Distribution Business: Improvement in performance post acquisition Distribution Loss (%) Supply Reliability (%) 8.12% 99.99% 7.85% 99.68% FY 18 FY 19 Sep 18 Mar 19 E-payments (%) Transformer Capacity (MVA) DT PT 3,691 3,775 45% 39% 4,959 4,979 Sep 18 Mar 19 Sep 18 Mar 19 10 DT: Distribution transfor
Slide 11: Distribution Business: Customer Mix
Distribution Business: Customer Mix Customer-wise Sales Customer-wise Revenue Mix Total MUs sold (FY19): 8,376 Total Revenue (FY19): Rs. 6,322 cr 11% 10% Residential Residential 42% Commercial Commercial 50% Industrial Industrial 40% 47% 11
Slide 12: Financial Highlights
Financial Highlights adani
Slide 13: P&L: FY19 v FY18 (Consolidated)
P&L: FY19 v FY18 (Consolidated) (Rs. (Rs. (Rs. InInInCr.) Cr.) Cr.) FY 2019 FY 2019 FY 2019 # FY 2018 Sr No. Particulars % change Transmission Distribution (Consolidated) 1 Revenue 1.1 Income from Sale of Power and Transmission 2,212 4,270 6,482 2,093 Income from Sale of Power and Transmission 1.1.a
Slide 14: P&L: FY19 v FY18 (Consolidated) (cont..)
P&L : FY19 v FY18 (Consolidated) (cont..) (Rs. In (Rs. In Cr.) Cr.) FY 2019 FY 2019 FY 2019 # FY 2018 Sr No. Particulars % change Transmission Distribution (Consolidated) 6=(3+4-5) EBITDA 2,186 922 3,107 2,064 7 Finance Cost 854 537 1,391 886 8 Depreciation 598 284 882 579 9=(6-7-8) PBT(before one t
Slide 15: P&L: FY19 v FY18 (Transmission Business)
P&L : FY19 v FY18 (Transmission Business) (Rs. In (Rs. In Cr.) Cr.) (Rs in Crore) FY 2019 FY 2018 Sr No. Particulars % change (Actual) (Actual) 1 Revenue 1.1 Net Transmission Charges 2,212 2,093 1.1.a Transmission Charges 2,218 2,107 5% 1.1.b Less: Rebate 6 14 1.2 Incentive on availability 48 37 2 E
Slide 16: P&L: FY19 v FY18 (Transmission Business) (contd.)
P&L : FY19 v FY18 (Transmission Business) (contd.) (Rs. In (Rs. In Cr.) Cr.) (Rs in Crore) FY 2019 FY 2018 Sr No. Particulars % change (Actual) (Actual) 6=(3+4-5) EBITDA 2,186 2,064 7 Finance Cost 854 886 -4% 8 Depreciation 598 579 9=(6-7-8) PBT(before one time income) 733 599 22% 10 Arrears Income/
Slide 17: Transmission Business: Revenue Bridge
Transmission Business: Revenue Bridge (Rs. In Cr.) 2,250 2,200 65 2,150 2,100 2 144 57 2,050 2,218 45 2,000 2,107 1,950 1,900 1,850 FY 2019 WTPL & WTGL acq in Operational SPV during ATIL Normal Revenue MEGPTCL Normal Others FY 2018 Nov'17. 2018-19 & Acquisition of decrease. Revenue decrease. (Full Y
Slide 18: Transmission Business: Operating EBITDA Bridge
Transmission Business : Operating EBITDA Bridge (Rs. In Cr.) 2,100 2,050 2,000 119 1,950 2,051 23 11 1,900 1,944 1,850 FY 2019 Revenue (see Revenue bridge) Incentive Operating Expense on Higher FY 2018 Assets 18
Slide 19: P&L: FY19 v FY18 (Distribution Business)
P&L : FY19 v FY18 (Distribution Business) (Rs. In (Rs. In Cr.) Cr.) Sept to Sept to Particulars Variance Mar'19 Mar'18 MU's Sold 4,631 4,610 21 Avg Realisation Rate excl FAC/ RA 8 8 1 Revenue : Income from Sale of Energy 3,998 3,681 317 Less - Discount for Prompt payment of Bills 18 14 3 Sub Total 3
Slide 20: P&L: FY19 v FY18 (Distribution Business) (cont..)
P&L : FY19 v FY18 (Distribution Business) (cont..) (Rs. In (Rs. In Cr.) Cr.) Sept to Sept to Particulars Variance Mar'19 Mar'18 EBITDA 805 987 (182) Operational EBITDA Margin 19% 23% Other Income 117 93 24 Finance Costs- GTD 537 153 384 Depreciation Expense 284 330 -46 PBT 101 596 (495) Regulatory I
Slide 21: Distribution Business: Revenue Bridge
Distribution Business : Revenue Bridge (Rs. In Cr.) 4,050 4,000 3,950 3,900 194 3,850 3,800 3,750 3,981 113 3,700 11 3 3,650 3,600 3,667 3,550 3,500 Sep 18-Mar 19 Sale of energy incl Fuel Adjustment Transmission Charges Dics. On prompt Sep 17-Mar 18 Wheeling Charges payment 21 AEML is acquired in Se
Slide 22: Distribution Business: EBITDA Bridge
Distribution Business : EBITDA Bridge (Rs. In Cr.) 1,200 1,000 1 25 86 47 800 282 209 600 987 400 805 200 - Sep 18-Mar 19 Revenue Carrying cost on Cost Of Power & Transmission Operation and Employee Sep17 -Mar 18 RA Fuel Purchased Charges Maintanance Benefits Expense Expenses 22
Slide 23: ATL: Financing Prowess
ATL: Financing Prowess Diversification of funding sources and focus on debt maturity / cost rationalization to deliver improved long-term returns Diversified Debt Mix[1] Improved Returns through Extended Debt Maturity Profile Based on FY19 Debt FY2016 FY19 1% 4% 2% 14% 12% 12% 19% 18% 23% 65% 60% 69
Slide 24: Summary
Summary • Continued operational excellence across Transmission assets, with 99.8% availability Performance • Focused on maximising incentives • Distribution loss reduced by 1.6 p.p post acquisition • Large addressable opportunity for the private sector in T&D. Pursuing growth in a disciplined manner
Slide 25: Appendix
adani Appendix 25
Slide 26: Appendix: Adani Transmission Limited Holding Structure
Appendix: Adani Transmission Limited Holding Structure 26
Slide 27: Adani Transmission Limited Holding Structure
Adani Transmission Limited Holding Structure Note: USD/INR: 68; ATIL - Adani Transmission (India) Limited; MEGPTCL - Maharashtra Eastern Grid Power Transmission Co. Limited; STL - Sipat Transmission Limited; RRWLT - Raipur Rajnandgaon Warora Transmission Limited; CWTL – Chhattisgarh WR Transmission
Slide 28: Largest Pure-play Integrated Transmission and Distribution Player in India
Largest Pure-play Integrated Transmission and Distribution Player in India Operational Assets – 11,477 C. km & 18,330 MVA Central vs State Capacity Projects Under Execution – 1,986 C km & 1,950 MVA Distribution PPP-8 Mohindergarh Electrode line (C. km) Mundra - Centre Mohindergarh Mohindergarh-Bhiwa
Slide 29: Appendix: Financial
Appendix: Financial adani ‘Transmission
Slide 30: P&L: Q4 FY19 v Q4 FY18 (Consolidated)
(Rs. In Cr.) P&L : Q4 FY19 v Q4 FY18 (Consolidated) (Rs. In Cr.) Q4 FY19 Q4 FY19 Q4 FY19 # Q4 FY18 Sr No. Particulars % change Transmissio Distribution (Consolidated) (Actual) 1 Revenue 1.1 Net Transmission Charges 575 1,696 2,271 533 1.1.a Transmission Charges 576 1,696 2,272 544 318% 1.1.b Less: R
Slide 31: P&L: Q4 FY19 v Q4 FY18 (Consolidated) (contd.)
(Rs. In Cr.) P&L : Q4 FY19 v Q4 FY18 (Consolidated) (contd.) (Rs. In Cr.) Q4 FY19 Q4 FY19 Q4 FY19 # Q4 FY18 Sr No. Particulars % change Transmissio Distribution (Consolidated) (Actual) 6=(3+4-5) EBITDA 522 373 895 559 60% 7 Finance Cost 219 217 436 226 8 Depreciation 150 126 276 143 9=(6-7-8) PBT(be
Slide 32: Key Ratios Mar-19
Key Ratios Mar-19 Particulars Actual Ratio Target Debt Service Coverage Ratio 1.30 < 1.1 Fixed Asset Coverage Ratio 1.32 < 1.1 Net Debt to EBITDA 4.71 > 5.5 Total External Debt to Net Worth 2.30 > 4.0 32
Slide 33: Credit Ratings
Credit Ratings International Particulars Rating Agency Rating/ Outlook Fitch BBB- (Stable) Credit Ratings ATL Moody’s Baa3 (Negative) S&P BBB- (Stable) (IG- Equals to Sovereign Rating) Domestic Particulars Rating Agency Rating/ Outlook India Rating/CARE AA+(Stable) ATL ICRA A1+(only CP rating) Brick
Slide 34: Credit Ratings - Subsidiaries
Credit Ratings - Subsidiaries India Company Name CARE CRISIL Brickworks Rating Adani Electricity Mumbai Limited. AA - - Aravali Transmission Service Company Limited. A - - Maru Transmission Service Company Limited. A- - - Western Transco Power Limited. - AA+(SO) - Western Transmission (Gujarat) Limi
Slide 35: Consolidated Debt Profile
Consolidated Debt Profile (Rs. In Cr.) Particulars Amount Obligor 7,224 GMR/WRSSS 1,028 Recently Operational Projects 2,152 Under Construction Projects 50 AEML 8,246 Sub total (a) 18,700 Less: Cash (b) 914 Total (a-b) 17,786 35
Slide 36: Appendix: AEML Business Overview
Appendix: AEML Business Overview 36
Slide 37: Snapshot of AEML Distribution Business
Snapshot of AEML Distribution Business Billing Customer (Lakh) 24.66 Total connections (Lakh) 30.301 Network Length – HT Cable (Kms) 4,798 Network Length – LT Cable (Kms) 6,139 PT Capacity (MVA) 3,775 DT Capacity (MVA) 4,979 Reliability : ASAI (%) 99.99% Distribution Loss (%) 7.77% Collection Effici
Slide 38: Snapshot of AEML Generation Business
Snapshot of AEML Generation Business Commissioning Year 1,995 Capacity 500 No. of units & Size (MW) 2 X 250 Plant Performance for last 15 years (FY04 – FY18) Average Availability (%) 95.65 Gross SHR (kCal/kWh) 2,290 Sp. Oil Consumption(ml/kwh) 0.12 Aux Power without FGD(%) 7.67 Aux Power with FGD(%)
Slide 39: Overview of AEML Transmission Business
Overview of AEML Transmission Business Transformation capacity (MVA) 3,125 Transmission lines (Ckt kms) 541 220 kV Bays (No) 115 33 kV Bays (No) 385 System Availability (%) 99.841 System Losses (%) 1.63%1 Caters ~70% demand of AEML Distribution 39 For Year ended 31 March 2019
Slide 40: Thank You
adani Transmission Thank You