Techno Electric & Engineering Company Limited · NSE:TECHNOE
Techno Electric & Engineering — Q2 FY2022 Earnings Presentation
49 slides from Techno Electric & Engineering's earnings presentation, December 2021
Slide 1: Investor Presentation: Quarter Ended September 2021
AN INVESTOR PRESENTATION Quarter Ended September, 2021
Slide 2: Corporate Overview, Business Segment Review, Financial Review
» Corporate Overview 03 » Business Segment Review 17 » Financial Review 38
Slide 3: Corporate Overview
NS ay S 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. 40+ Years 400+ Projects 25+ Years 400 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 2021 Launched EPC Entered renewable Initiated transmission Data Centres services energy generation Asset Ownership COMPANY OVERVIEW BUSINESS SEGMENT REVIEW FINANCIAL REVIEW
Slide 7: Advancing with Experience and Expertise: EPC
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: Asset Ownership
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: Green Power
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 ₹ 20,137 million 15% size of order book as on EPC EBIDTA Margin over the 30th September, 2021 last 5 years 24 months 90% revenue visibility Revenue of the total business from EPC as on 31 March, 2021 CO
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 30th September, 2021
EPC ORDER BOOK AS ON 30th September, 2021 Name of the client Amount in mn 24.29% REC Power 4,890.7 ₹ 2,343 million Distribution Co. Ltd ( JKPDD) Generation 23.07% PGCIL 4,645.9 11.99% Sterlite Power 2,413.8 Transmission 11.17% Damodar Valley 2,249.5 Total - Corporation ₹ 12,230 million 100 (in %) 6.
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 PAT (₹ in mn) FY 20-21 1,371.54 FY 19-20 1,331.94 FY
Slide 23: Promising Future Owing To: Data Centres
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: FGD
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 25: Promising Future Owing To: Smart Metering
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 26: Promising Future Owing To: Renewable Transmission
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: Trans-border Projects
PROMISING FUTURE OWING TO (Contd.) Bagged the following trans-border projects » TOGO Communaute Electrique du Benin (CEB), TOGO, for eextension of Kara Substation & Design, supply, installation and Commissioning of new 161/20 kV Substation at Mango worth US$ 9.69 million. Foreign project on the hori
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 Wind Project Capacity 18 MW 111.90 MW Date of Acquisition/ During 2009-10 March 31, 2011 - February 24, 2012 Commissioning Location Karnataka Tamil Nadu Capacity 12 turbines x 1.5 MW each 48 turbines x 1.5 MW each; 19 turbines x 2.1 MW each PLF 18% - 24% 24% - 28% Tariff ₹ 3.4
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 expected to grow
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 FY2028 across India » Build an ultra-scalable, hyper-density Data Centre of 24 MW IT Load in Chennai, Tamil Nadu by FY2023 » Build an Data Centre of 25-3
Slide 41: Aligned to the Big Picture: Chennai Data Centre
ALIGNED TO THE BIG PICTURE (CONTD.) Chennai Data Centre SIRUSERI, Chennai Land Size & Built • Land Size – 4 acres Up in Sq. Ft. • Built Up Area – Approx. 200,000 sft Sq. Ft. Power Capacity • TEECL has captive renewable energy (wind turbines) of ~112 MW in Tamil Nadu, generating 220 MU annually. Time
Slide 42: Financial Review
@...: Review
Slide 43: Analysing Quarterly Financials – Q2FY22
ANALYSING QUARTERLY FINANCIALS – Q2FY22 Revenue EBITDA (₹ in mn) (₹ in mn) 2735.06 854.25 2571.13 753.41 EBITDA Margin Other income (%) (₹ in mn) 31.23 102.85 29.30 506.25 Profit after tax Interest Cost (₹ in mn) (₹ in mn) 634.85 12.52 963.97 17.19 Q2FY22 Q2FY21 1. Other Income for Q2FY22 stood at R
Slide 44: Analysing Quarterly Segment Result – Q2FY22
ANALYSING QUARTERLY SEGMENT RESULT – Q2FY22 Revenue (₹ in mn) Revenue (₹ in mn) 2,254.50 480.50 2,233.62 337.52 EBIT (₹ in mn) EBIT (₹ in mn) 412 341 458 197 EBIT Margin (%) EBIT Margin (%) 18.28 70.97 20.48 58.32 Q2FY22 Q2FY21 Q2FY22 Q2FY21 COMPANY OVERVIEW BUSINESS SEGMENT REVIEW FINANCIAL REVIEW
Slide 45: Analysing Half Yearly Financials – H1FY22
ANALYSING HALF YEARLY FINANCIALS – H1FY22 Revenue EBITDA (₹ in mn) (₹ in mn) 4,629.60 1,406.20 4,268.69 1,196.72 EBITDA Margin Other income (%) (₹ in mn) 30.37 274.17 28.03 639.45 Profit after tax Interest Cost (₹ in mn) (₹ in mn) 1,090.80 30.13 1,308.71 29.55 H1FY22 H1FY21 1. Other Income for Q2FY2
Slide 46: Analysing Half Yearly Segment Result – H1FY22
ANALYSING HALF YEARLY FINANCIALS – H1FY22 Revenue (₹ in mn) Revenue (₹ in mn) 3,880 751.81 3,763 524.38 EBIT (₹ in mn) EBIT (₹ in mn) 730.47 473.83 763.54 246.19 EBIT Margin (%) EBIT Margin (%) 18.83 63.03 20.29 46.95 H1FY22 H1FY21 H1FY22 H1FY21 COMPANY OVERVIEW BUSINESS SEGMENT REVIEW FINANCIAL REV
Slide 47: 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 48: 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 49: 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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