Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Q1 FY2011 Earnings Presentation
50 slides from Jsw Energy's earnings presentation, October 2010
Slide 1: Energising Dreams FY 2011
Mining | Equipment Manufacturing | Power Generation | Power Transmission | Power Trading Energy Lighting up a billion dreams Energising reams FY 2011 ees! +2 ’ bere? watt? ye ad
Slide 2: Power Drivers, Company Overview, Performance Highlights
Power Drivers Company Overview Performance Highlights Major Developments Status of Projects Way Forward 2
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Slide 4: Share of World Population and Energy Consumption
Share of World Population Share of World Energy Consumption India makes up 17% of the world population yet consumes only 3% of the world energy India- historically characterized by energy shortages India’s Peak Demand Deficit at 13.8% in Q1 FY 2011 4 Source: Population reference Bureau, U.S. Energ
Slide 5: Per Capita Consumption kWh per annum
Per Capita Consumption kwh per annum 13,652 8,474 6,317 2,752 2,332 1,422 612 United States Japan Russia World China Brazil India Average Low Per Capita consumption & penetration of electricity Merely 44% of the rural households have access to electricity 5 Source: The World Bank
Slide 6: Year on Year IIP Growth and Demand Deficit Trend
Year on Year IIP Growth (%) Demand Deficit Trend (Q1 FY 2011) Expanding base of industrial sector provides scope for huge development in the power sector 6 Source: Ministry of Finance, IEA, CEA
Slide 7: Total Installed Capacity, June 30, 2010
Total Installed Capacity, June 30, 2010 Total Capacity: 162 GW 7 Source: CEA
Slide 8: Challenges facing the power sector
Inefficient Transmission networks & Distribution corridors •Fuel tie-ups •Grant of timely & Financial approvals closure CHALLENGES •Potential •Cost – push government on account of intervention fuel Infrastructural, Technological & Environmental concerns 8
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Slide 10: Established power company with proven track record
240 MW 270 MW 810 MW Kutehr Established power company with 270 MW 1,620 MW proven track record (since FY 2000) Barmer - Present operating capacity: 1,430 MW Jharkhand West Bengal - 11,390 MW by FY 2016 Chhattisgarh 1,600 MW 1,320 MW Profit making since inception Ratnagiri 300 MW Vijayanagar 900
Slide 11: Capacity Ramp Up and Technology Mix
Capacity Ramp Up Technology Mix 8,250MW Super-Critical 7440 MW Under 67% Implementation & Development 2,145 MW CAGR 38% Under 735 MW Construction Sub-Critical 3710 MW Commissioned in FY’10 CAGR 151% 33% CAGR 17% 11,150 MW * * Excludes Hydro Capacity of 240 MW Synergies of Growth & Technological shif
Slide 12: Balanced Off Take Arrangements
BALANCED OFF TAKE ARRANGEMENTS Significant Capacity Available for Short-Term Sales Established presence in Short-Term Sales 5,171 (29%) 1,913 2,067 2,056 Million Units 1,904 (20%) 1,827 (31%) (39%) (69%) (56%) (71%) (80%) (69%) (61%) (44%) (31%) 3,140 MW Short Term Arrangements Long Term Arrangement
Slide 13: Diversified Fuel Mix reduces risk
Imported Fuel Majority Stake in SACMH coal Reducing Dependence on Imported Fuel assets, South Africa Long term coal contracts from 11,390 Indonesia & Mozambique 995 3,140 MW MW MW 2% 14% Domestic Fuel 34% Diversified 52% Fuel Mix Kapurdi & Jalipa lignite mines, reduces Rajasthan risk 86% Coal b
Slide 14: Integrated Approach to Power Solution
INTEGRATED APPROACH TO POWER SOLUTION Current Business Target Business Mining Transmission Power Distribution Generation Equipment Manufacturing Power Trading BACKWARD INTEGRATION FORWARD INTEGRATION Aim to be present across the Value Chain 14
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Slide 16: Capacity Growth and Volume Growth
Capacity Growth (MW) Volume Growth (Million kwh) 283% 251% 16
Slide 17: Net Generation and Realization
Net Generation( Million kwh) 1,827 251 % 31 % 521 20 % 69 % 80 % Realization ` per kwh / US Cents per kwh Q1 FY 2010 Q1 FY 2011 Short Term Realisation 6.20 13.30 5.77 12.38 Average Realisation 5.66 12.15 5.09 10.92 17
Slide 18: Net Generation and PLF by plant
Q1 FY 10 NET GENERATION (Million kwh) Q1 FY 11 521 Vijayanagar (SBU I) 500 Vijayanagar (SBU II) 1,228 Barmer (RWPL I) 99 521 TOTAL 1,827 Q1 FY 10 PLF (%) Q1 FY 11 99.0% Vijayanagar (SBU I) 95.1% Vijayanagar (SBU II) 101.3% Barmer (RWPL I) 42.4% 18
Slide 19: Total Income, EBITDA, PBT, PAT
Total Income* (` Crores / US $ Mio.) EBITDA (` Crores / US $ Mio.) 218% 171% $ 207 $ 104 $ 65 $ 38 PBT (` Crores / US $ Mio.) PAT (` Crores / US $ Mio.) 190% 219% $ 64 $ 78 $ 20 $ 27 19 USD/Rs. 46.60 (RBI Reference rate as on 30.06.2010)
Slide 20: Q1 FY2011 Financial Summary
` Crores USD Mio. ` Crores USD Mio. 302.66 64.95 Total Income 962.87 206.62 178.25 38.25 EBITDA 482.82 103.61 58.89 EBITDA (%) 50.14 38.24 8.21 Interest 73.66 15.81 14.90 3.20 Depreciation 46.66 10.01 125.11 26.85 PBT 362.49 77.79 93.63 20.09 PAT 298.64 64.09 EPS (Not Annualised) 0.61 1.31 1.82 3.91
Slide 21: Net Worth, Debt and Net Fixed Assets
(` Crores) USD Mio. (` Crores) USD Mio. Net Worth 4,780 1,026 5,079 1,090 Debt 7,870 1,689 7,972 1,711 Net Fixed Assets * 11,598 2,489 11,987 2,572 Debt Equity Ratio (Times) 1.65 1.57 Weighted Average Cost of 11.51 11.42 Debt (%) *Including CWIP 21 USD/Rs. 46.60 (RBI Reference rate as on 30.06.2010)
Slide 22: Gross Proceeds received from IPO
PARTICULARS Project Actual Project Actual Utilisation as Amount Utilisation as Amount Utilisation upto June 30, per Prospectus Spent upto per Prospectus Spent upto 2010 June 30, June 30, 2010 2010 Part Finance for Identified (i) 2,142.53 947.15 459.77 203.25 Projects Repayment of Corporate (ii) 470.
Slide 23: Merger of JSWERL with JSWEL
PROJECTS MERGER of JSWERL with JSWEL RATIONALE Building robust corporate structure Unit I- Ratnagiri commercially Creates economies of scale through operational on operation as single entity September 1, 2010 Stronger balance sheet of Consolidated Entity Unit II- Barmer Ability to efficiently
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Slide 25: Transmission Project: Jaigad-Karad 400 KV
Project Details Status Update Gross Capacity 1200 MW, 400 KV Transmission •Jaigad-Koyna Line 2 successfully charged Double Circuit Quad Moose Technology Conductor Line •Jaigad – Karad: •Tower Foundations: 88% Procurement Orders placed •Tower Erection: 53% •Stringing: 16% ` 580 Crores (US$ 124 Mio.)
Slide 26: Mining and Equipment Manufacturing Status Update
Status Update Mine development process commenced at Kapurdi BLMCL MOEF Clearance received for Jalipa mines Mine development plan approved for Jalipa mines Expected to extract lignite by first quarter of calendar 2011 Land acquisition at advanced stage for Jalipa mines MJSJ Coal Public hearing proces
Slide 27: Generation Projects
GENERATION PROJECTS
Slide 28: Barmer Project 1,080 MW
Project Details Status Update •Unit 2 COD October 4, 2010 Gross Capacity 1,080 MW (8 x 135) •Unit 3 & 4 boiler hydro test completed Technology Sub-critical Captive Lignite based TPP •Raw Water pipe line commissioned FSA with BLMCL (49% JV) for supply Fuel Linkage of lignite from captive lignite mine
Slide 29: Ratnagiri Project 1,200 MW
Project Details Status Update bi Gross Capacity 1200 MW (4 x 300) •Boiler 2 light up done & steam blowing started Technology Sub-critical Imported Coal based TPP •Commissioning of critical equipments Long term supply arrangement for in progress Fuel Linkage Indonesian coal •Boiler 3 & 4 hydro test c
Slide 30: Kutehr Hydro Project 240 MW
Project Details Status Update •Prequalification of vendors completed Gross Capacity 240 MW (3 x 80) for Main Civil Works •Public hearing for Environment Technology Run-of-the-river Hydropower clearance held successfully Water •Techno Economic Clearance from CEA Ravi River received on August 30, 2010
Slide 31: Chhattisgarh Project 1,320 MW
Project Details Status Update Gross Capacity 1,320 MW (2 x 660) •Consent for chimney clearance given by Airport Authority Super-critical domestic coal based Technology TPP •Four bidders have purchased tender documents MoU signed with GoCG for setting up Authority a TPP along with integrated coal •Pu
Slide 32: West Bengal Project 1,600 MW
Project Details Status Update Gross Capacity 1,600 MW (2 x 800) •Water availability study conducted Technology Super-critical Domestic coal based TPP •In principle approval received for entering into a LT PPA for surplus power 74 % - JSWEL Share Holding •Agreement executed for coal raising & 26 % -
Slide 33: Ratnagiri Expansion 3,200 MW
Project Details Status Update Gross Capacity 3,200 MW (4 x 800) •Substantial land in possession Super-critical imported coal based •Process of obtaining necessary Technology TPP consents and approvals Letter of support from Government Authority of Maharashtra Imported Coal from Indonesia and Fuel Li
Slide 34: Jharkhand Project 1,620 MW
Project Details Status Update Gross Capacity 1620 MW (2 x 660, 1 x 300) •Land identified 1,320 MW - Super-critical Domestic •Applied for coal linkage Technology coal based TPP; 300 MW Sub- critical Authority MoU with GoJ Water is proposed to be sourced Water Allocation from the Subarnarekha river 25
Slide 35: Barmer Expansion 270 MW
Project Details Status Update Gross Capacity 270 MW (2 x 135) • Land in possession Subcritical Captive lignite based Technology TPP •Applied for coal linkage Fuel Linkage Applied to Ministry of Coal Water Allocation from IGNP Allocation Short Term power purchase Power Off take arrangements Total Cos
Slide 36: Increase in Market Capitalisation from date of listing
$ 4,585 $ 4,139 $ 3,730 23 % Increase in Market Capitalisation from the date of listing 36 USD/Rs. 44.30 (RBI Reference rate as on 06.10.2010)
Slide 37: Way Forward
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Slide 39: Annexure
ANNEXURE
Slide 40: Financial Summary
` Crores USD Mio. ` Crores USD Mio. 349.22 74.94 Total Income 922.18 197.89 216.17 46.39 EBITDA 495.42 106.31 61.90 EBITDA (%) 53.72 37.57 8.06 Interest 58.86 12.63 14.76 3.17 Depreciation 38.38 8.24 163.84 35.16 PBT 398.18 85.45 132.73 28.48 PAT 327.20 70.21 EPS (Not Annualised) 0.87 1.87 2.00 4.29
Slide 41: Plant Overview
Plant Overview 41 41
Slide 42: Plant Overview: Unit 3 and Unit 4 TG Sets
Unit 3 TG Set Unit 4 TG Set Plant Overview 42 42
Slide 43: Unit 5 Boiler & ESP, Unit 6 Boiler
Unit 5 Boiler & ESP Unit 6 Boiler 43 43
Slide 44: Unit I Synchronized
UNIT I Synchronized 44 44
Slide 45: Overview
1: Reck << sae i TED GIRI LIMI RATNA Overview SW ENERGY ! i J
Slide 46: Proposed Colony Site
Proposed Colony Site
Slide 47: Rock Mechanic Tests under Progress
Rock Mechanic Tests under Progress
Slide 48: Jaigad – New Koyna
LIVI. FY CR AA TES F WSU TA TATTOO CTA Weary Yer Jaigad - New Koyna iN ff %
Slide 49: Site Overview
Site Overview 49 49
Slide 50: Forward-looking statements disclaimer
Certain statements in this report 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 risk and uncertainties relating to these