Slide 1: Cover letter to stock exchanges on earnings presentation
IWL: N01: 32: 2019 9th August, 2019 The Secretary The Secretary BSE Limited National Stock Exchange of India Limited Phiroze J eejeebhoy 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 Q1FY20 Investor Update
INOX WIND LIMITED Q1FY20 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 SIGNIFICANT MARKET OPPORTUNITY ORDER BOOK TECHNOLOGY RESULT ANALYSIS WORKING CAPITAL ANALYSIS CASH FLOW AND DEBT ANALYSIS O&M – ANNUITY BUSINESS WIND AUCTIONS WIND SECTOR: GAINING STRENTH MANUFACTURING CAPACITY SHAREHOLDING STRUCTURE
Slide 5: Quarterly Highlights – Operations
QUARTERLY HIGHLIGHTS Operations Successfully Commissioned 200 MW of SECI 1 at Dayapar, Gujarat – 150 MW in Q1FY20 and 50 MW in July 2019 Due to huge delay in central grid connectivity, extension request for 50 MW is under process Common Infrastructure for SECI projects at Dayapar, Gujarat in p
Slide 6: Quarterly Highlights – Financials
QUARTERLY HIGHLIGHTS Financials Inox Wind continues to maintain EBITDA margins and Cash Profit after tax on the back of commissioning of SECI 1 despite over 15 months delay in central grid evacuation readiness (which was finally commissioned on 14th April 2019) Significant QoQ turn around in top
Slide 7: Significant Market Opportunity
SIGNIFICANT MARKET OPPORTUNITY As a result of the painful transition from FiT regime to auction regime, over the past 2 years multiple wind turbine manufacturers have either closed down or are facing severe financial issues. This has resulted in shortage of supplies of WTGs in the market. Inox s
Slide 8: Order Book
ORDER BOOK SECI 3: SECI 4: Particulars Capacity 200MW 100MW Auction based order book 990 MW SECI 2: 300MW Maharashtra Supplied 284 MW •IWL: 250MW state auction: •Adani: 50MW Net order book 706 MW 50MW SECI 1: 300MW Inox Wind Gujarat LOI for 3.3 MW from Adani 501.6 •IWL: Order state 250MW Book = auct
Slide 9: Technology
TECHNOLOGY Inox Wind extends its existing 2MW product Technical Specification offering with the launch of the 3.3 MW wind turbines which are ideally suited for low wind Rated power: 3300 KW regimes in India. Drive Train : DF, 6 Pole Generator Turbine Design : AMSC, Austria The newly launched 3
Slide 10: Result Analysis
RESULT ANALYSIS REVENUES EBITDA & EBITDA MARGIN (%) In Rs. Cr. 430 16.3% 14.7% 260 180 70 -15.8% 38 -28 Q1 FY19 Q4 FY19 Q1 FY20 REVENUES Q1 FY19 Q4 FY19 Q1 FY20 EBIDTA EBIDTA % PAT & PAT MARGIN (%) 2.4% 10 -5.4% Q1 FY19 Q4 FY19 Q1 FY20 -14 -29.6% -53 PAT PAT % Supplies in Q1FY20 were muted since the
Slide 11: Working Capital Analysis – Positive Momentum Continues
WORKING CAPITAL ANALYSIS – POSITIVE MOMENTUM CONTINUES In Rs. Cr. • Inventory: Consolidated inventory levels maintained at same level mainly on account of ramp-up of SECI projects execution since the current inventory includes the project work in progress of Dayapar, Gujarat site and supplies toward
Slide 12: Cash Flow and Debt Analysis
CASH FLOW AND DEBT ANALYSIS In Rs. Cr. Healthy Net Debt to Equity ratio of 0.44x 11
Slide 13: O&M – Strong Annuity Model
O&M – STRONG ANNUITY MODEL Inox Wind has multi year O&M agreements for its fleet across customers and from the upcoming new financial year, a significant part of the WTGs will be beyond the free O&M/warranty period. Moreover, with the increase in the fleet size on the back of strong auction orde
Slide 14: Wind Auctions
WIND AUCTIONS Auction Period Volume (MW) SECI 1 – SECI 3 Feb’17 – Mar’18 4050 MW State Auctions Feb’17 – Mar’18 1500 MW SECI 4 April 2018 2000 MW NTPC August 2018 1200 MW SECI 5 September 2018 1200 MW Hybrid 1 December 2018 840 MW SECI 6 February 2019 1200 MW Gujarat May 2019 745 MW Hybrid 2 May 201
Slide 15: 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. 5.5 3-5 3.2 3.3 2.3 2.3 2 1.7 1.7 1.7 1.5 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20E* Feed In Tariff Regime (FIT) Auc
Slide 16: 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 15
Slide 17: Shareholding Structure
SHAREHOLDING STRUCTURE Inox Wind Share Price (Rs) Market Data As on 08.08.19 (BSE) 110 100 Market capitalization (Rs. Cr) 1098 90 80 Price (Rs.) 49.50 70 60 No. of shares outstanding (Cr) 22 50 40 30 Face Value (Rs.) 10.0 Jun/2018 Aug/2018 Oct/2018 Dec/2018 Feb/2019 Apr/2019 Jun/2019 Aug/2019 Source
Slide 18: Detailed Financials Consolidated P&L Statement
DETAILED FINANCIALS CONSOLIDATED P&L STATEMENT 17
Slide 19: 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, FY16-19 as per Ind AS Revenue from Operations EBIDTA (Inc OI) & EBIDTA Margin % PAT & PAT Margin % 19.0% 17.4% 14.2% 4,451 17.6% 18.3% 8.4
Slide 20: Thank You
THANK YOU Jitendra Mohananey Group Financial Controller Contact No: 0120 6149600 Email : Investors.iwl@inoxwind.com 19