Orient Green Power Company Ltd · NSE:GREENPOWER
Orient Green Power — Q1 FY19 Earnings Presentation
25 slides from Orient Green Power's earnings presentation, 2018
Slide 1: Leading Renewable Energy Generation Company
Leading Renewable Energy Generation Company
Slide 2: 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 3: Index
Index Transformation Strategy & Operational Progress Key Developments: Q1 FY19 Financial Highlights Operational 4 Outlook & Highlights Regulatory Appendix: ` Overview Financial 12 Statements 14 17 19 23 3
Slide 4: Transformation Strategy & Operational Progress
Transformation Strategy & Operational Progress
Slide 5: 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 6: High Potential disrupted by external factors
High Potential disrupted by external factors In Rs. cr EBITDA Revenues 461 433 402 385 384 305 309 293 307 302 230 213 FY16 FY17 FY18 FY16 FY17 FY18 Finance Cost Depreciation 277 267 235 207 136 136 169 124 136 205 199 178 FY16 FY17 FY18 FY16 FY17 FY18 Cash Profit Profit before Tax 110 129 -26 5 25
Slide 7: What has changed in recent times
What has changed in recent times Improvement in grid evacuation level 95.5 95.1 95.5 93.9 97.4 94.8 Increased frequency bandwidth for 93.1 77.2 renewables Phase-wise shutting down of thermal power plants during the wind season Request for expedition of 1,000 MW green energy corridor to help 10
Slide 8: Supported by Improvement in REC Mechanism
Supported by Improvement in REC Mechanism REC’s Outstanding in thousands • Sharp increase in RECs traded in FY17 & FY18 on stricter 494 516 implementation 420 • REC Trading volumes on energy exchanges set new records in FY18 • 100% realization of REC stocks 0 FY15 FY16 FY17 FY18 Traded REC Revenue I
Slide 9: Focus on Debt Reduction
Focus on Debt Reduction Debt (Rs. Cr) Interest Expense (Rs. Cr) 2,159 2,104 1,978 1,887 265 286 278 267 1,571 235 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Interest / Revenue (%) EBITDA / Interest (x) 70% 64% 60% 61% 58% 1.28 1.10 0.81 0.84 0.77 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 F
Slide 10: Resulting in Improved Profitability
Resulting in Improved Profitability EBITDA (Rs. Cr) EBIT (Rs. Cr) 179 293 302 165 243 232 124 215 72 8 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 PAT (Rs. Cr) Cash Profit (Rs. Cr) FY14 FY15 FY16 FY17 FY18 (71) 67 (96) 25 (188) (233) FY14 FY15 FY16 FY17 FY18 (340) (50) (47) (63) 10
Slide 11: Green shoots – on the back of strategic and structural initiatives
Green shoots – on the back of strategic and structural initiatives Growth Improving macros in terms of improved grid availability in TN (308 Mw out of total portfolio of 425 Mw) – conducive frequency of grid back down has reduced substantially and consistent grid availability is expected to sustai
Slide 12: Key Developments: Q1 FY19
Or Key Developments: Q1 FY19
Slide 13: Key Developments – Q1 FY19
Key Developments – Q1 FY19 Strategic initiatives playing out – Higher revenues and profitability Strategic initiatives undertaken towards improving revenue momentum and business profitability have elevated the performance of the Company Sustainable increase in revenue performance coupled with re
Slide 14: Financial Highlights
Financial Highlights
Slide 15: Q1 FY19 Consolidated Financial Performance
Q1 FY19 Consolidated Financial Performance In Rs. Mn Q1 FY19 Q1 FY18 Continued Operations: Revenue 994 1,331 EBITDA 766 1,073 EBITDA % 77% 81% EBIT 481 759 EBIT % 48% 57% Profit / (Loss) before tax (6) 214 Discontinued Operations Profit/(Loss) before tax (22) 124 Profit / (Loss) before tax (28) 91 1
Slide 16: Key Financial Highlights – Q1 FY19
Key Financial Highlights – Q1 FY19 Wind Business: Revenue for the quarter stood at Rs. 994 mn compared to Rs. 1,331 mn. EBITDA reduced to Rs. 766 mn compared to Rs.1073 mn. Expect business momentum to continue: – Supportive macros : • Consistent grid availability especially in TN; grid availabil
Slide 17: Operational Highlights
Or Operational Highlights
Slide 18: Wind Operations
Wind Operations Unit of Particulars Q1 FY19 Q1 FY18 Measurement Capacity (incl. overseas capacity) Mw 425 425 Units Generated (Gross) Mn 195 249 Annualized PLF % 21.1 26.8 Average Gross Realisation (before charges and Rs./ Unit 4.82 4.91 without REC) State Capacity (MW) Tamil Nadu 308.3 Andhra Prade
Slide 19: Outlook & Regulatory Overview
Outlook & Regulatory Overview
Slide 20: Outlook - Wind
Outlook - Wind Sector fundamentals shaping up well – Promising Outlook – Supportive Govt. policies coupled with on – ground positive developments i.e. improving grid infrastructure & conducive operating environment contributing to overall positivity of the sector Improving gearing ratio & liquid
Slide 21: Renewable Energy Certificates
Renewable Energy Certificates Trading volumes continued to remain high, maintaining its momentum from previous quarter – Zero to limited inventory remained during the quarter Strong volumes on the back of higher demand resulted in certificates being traded at a slight premium to its floor price
Slide 22: Regulatory & Market Developments
Regulatory & Market Developments Setting up of a RPO compliance cell – – Following MNRE’s May 22, 2018 order, a Renewable Purchase Obligation cell is in process. This cell will be handling all the matters related to RPO compliance across states and publishing monthly reports on the updates. – The
Slide 23: Appendix: Financial Statements
Appendix: Financial Statements
Slide 24: Financial Performance – Q1 FY19 (Consolidated – IND-AS)
Financial Performance – Q1 FY19 (Consolidated – IND-AS) Rs. Million Q1 FY19 Q1 FY18 Continued Operations Sale of Power 846 1,121 Other Operating Income 97 152 Total Income 943 1,273 O & M and Other costs 228 257 Total Expenditure 228 257 Operational EBITDA 715 1,016 EBITDA (%) 76% 80% Other Income 5
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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