Inox Wind Ltd. · NSE:INOXWIND
Inox Wind — Q3 FY2019 Earnings Presentation
21 slides from Inox Wind's earnings presentation, Feb 8, 2019
Slide 1: Exchange cover letter for earnings presentation
IWL: NOI: 7: 2019 08th February, 2019 The Secretary The Secretary BSE Limited National Exchange of India Limited Stock Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai 400 001 Bandra (E), Mumbai 400 051 Fax No. 022-22723121/2037/39/ 41/61 Fax No. 022-2659 8237/38 S
Slide 2: Inox Wind Limited Q3FY19 Investor Update
INOX WIND LIMITED Q3FY19 INVESTOR UPDATE
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Inox Wind Limited (“IWL” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future state of affairs, results of operation
Slide 4: Discussion Summary
DISCUSSION SUMMARY QUARTERLY HIGHLIGHTS Q3 RESULT ANALYSIS 9 MONTHS RESULT ANALYSIS WORKING CAPITAL ANALYSIS CASH FLOW AND DEBT ANALYSIS WIND SECTOR: GAINING STRENTH NEW DAWN AT THE END OF A PERFECT STORM WIND AUCTIONS ORDER BOOK MANUFACTURING CAPACITY PROJECT SITES TECHNOLOG
Slide 5: Quarterly Highlights
QUARTERLY HIGHLIGHTS Inox Wind continues to be profitable for 3rd consecutive quarter on back of the ongoing delivery of our SECI orders post the painful transition faced by the wind industry over the past few quarters. Recently entered into technology agreement to launch our next generation 3.3
Slide 6: Q3 Result Analysis
Q3 RESULT ANALYSIS REVENUES EBITDA & EBITDA MARGIN (%) In Rs. Cr. 391 15.5% 61 -18 91 Q3 FY18 Q3 FY19 -19.8% Q3 FY18 Q3 FY19 REVENUES EBIDTA EBIDTA % PAT & PAT MARGIN (%) 0.4% 2 Q3 FY18 Q3 FY19 -46 -50.7% PAT PAT % Q3FY19 results reflect the turnaround with the ongoing execution of SECI orders under
Slide 7: 9 Months Result Analysis
9 MONTHS RESULT ANALYSIS REVENUES EBITDA & EBITDA MARGIN (%) In Rs. Cr. 1,258 14.7% 184 276 -52 9M FY18 9M FY19 9M FY18 9M FY19 -18.7% REVENUES EBIDTA EBIDTA % PAT & PAT MARGIN (%) 1.1% 14 9M FY18 9M FY19 -47.7% (132) PAT PAT % Revenues 9M FY19 results reflect the turnaround with the ongoing executi
Slide 8: Working Capital Analysis – Positive Momentum Continues
WORKING CAPITAL ANALYSIS – POSITIVE MOMENTUM CONTINUES In Rs. Cr. • Inventory: Inventory levels gradually stabilizing on back of continued SECI execution over the year, the current inventory includes the project work in progress of Gujarat sites which can be commissioned once the central grid infras
Slide 9: Cash Flow and Debt Analysis
CASH FLOW AND DEBT ANALYSIS In Rs. Cr. Net debt remains at a healthy 0.41x (vs 0.44x in Q3FY18). 8
Slide 10: Wind Sector: Gaining Strength
WIND SECTOR: GAINING STRENGTH Withdrawal of AD Reintroduction of AD The sector witnessed an (GW) & GBI Provision & GBI Provision abrupt transition to the auction regime. 6-10 5.5 3-5 3.2 3.3 2.3 2.3 2 1.7 1.7 1.7 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19E* FY20E* Feed In Tariff Regime (FIT)
Slide 11: New Dawn at the End of a Perfect Storm
NEW DAWN AT THE END OF A PERFECT STORM Feb, 17: 1st SECI States stop signing The wind sector comes wind auction PPAs and refuse to to a complete stand still conducted honor signed PPAs Some of the challenges faced - Inventory pile up Oct, 17: SECI-2 Sept, 17: CERC conducted post issues transmission
Slide 12: Wind Auctions
WIND AUCTIONS Auction Month Volume (MW) Auctions in pipeline SECI 1 February 2017 1050 MW Auction Month Volume (MW) Tamil Nadu August 2017 500 MW SECI 6 (Bid February 2019 1200 MW SECI 2 October 2017 1000 MW Submission) Gujarat December 2017 500 MW Hybrid 2 January 2019 1200 MW (Announced) SECI 3 Fe
Slide 13: Order Book
ORDER BOOK Particulars Capacity SECI 3: 200MW SECI 2: 300MW Auction based order book 950 MW •IWL: 250MW Supplied 244 MW •Adani: 50MW SECI 4: 100MW Net order book 706 MW SECI 1: 300MW Inox Wind Letter of Intent 501.6 Maharashtra •IWL: 250MW Order state auction: •Adani: 50MW Book = 50MW Total 1207.6 9
Slide 14: Manufacturing Capacity
MANUFACTURING CAPACITY CURRENT CAPACITY (MW) Una, Barwani, Rohika, Plant Location Himachal Madhya Total Gujarat Pradesh Pradesh Nacelles & Hubs 1,100 - - 1,100 Blades - 800 800 1,600 Towers - 300 300 600 Well positioned to take advantage of the growing market. Potential to debottleneck our nacel
Slide 15: Project Sites
PROJECT SITES Amongst the largest project site allottees in Gujarat, Rajasthan and Madhya Pradesh Rajasthan Expanded presence in Andhra Pradesh and Gujarat Madhya Pradesh Karnataka and Kerala Maharashtra Sufficient project site inventory for installation of an aggregate capacity of more than 5
Slide 16: Technology
TECHNOLOGY Moving towards bigger turbines on the same platform 3.3 MW Wind Turbine platform Higher Energy Lower Energy Higher Returns Inox Wind extends the existing 2MW Yield Cost product offering with the launch of 3.3 MW wind turbines which are suited for low wind regimes in India. 20% Newly la
Slide 17: O&M – Annuity Business
O&M – ANNUITY BUSINESS Inox Wind has an installed wind turbine base of approx 2.4GW in India with multi year O&M agreements We expect this revenue stream to pick up strongly in the coming years as the fleet size increases on back of strong auction order inflow. O&M revenues are noncyclical in
Slide 18: Shareholding Structure
SHAREHOLDING STRUCTURE Inox Wind Share Price (Rs) Market Data As on 08.02.19 (BSE) 150 140 Market capitalization (Rs. Cr) 1453 130 120 110 Price (Rs.) 65.50 100 90 No. of shares outstanding (Cr) 22 80 70 Face Value (Rs.) 10.0 Jan-2018 Mar-2018 May-2018 Jul-2018 Sep-2018 Nov-2018 Jan-2019 Source - BS
Slide 19: Detailed Financials: Consolidated P&L Statement
DETAILED FINANCIALS CONSOLIDATED P&L STATEMENT 18
Slide 20: Financial Summary
FINANCIAL SUMMARY ROE: PAT/Avg. Equity, ROCE: EBIT/Avg. Capital Employed [(Capital Employed = Equity + Total Debt) Consolidated financials, FY13-15 as per IGAAP, FY16-17 as per Ind AS Revenue from Operations EBIDTA (Inc OI) & EBIDTA Margin % PAT & PAT Margin % 19.0% 14.2% 4,451 17.4% 17.6% 18.3% 8.4
Slide 21: Thank You
THANK YOU Mr. Jitendra Mohananey CFO Contact No: 0120 6149600 Email : Investors.iwl@inoxwind.com 20