Orient Green Power Company Ltd · NSE:GREENPOWER
Orient Green Power — Q1 FY2020 Earnings Presentation
25 slides from Orient Green Power's earnings presentation, Aug 6, 2019
Slide 1: Cover letter to stock exchanges
06th August 2019 The BSE Limited The National Stock Exchange Corporate Relations Department, of India Limited P.J. Towers, Department of Corporate Services, Dalal Street, Exchange Plaza, 5th Floor, Mumbai-400 001. Bandra-Kurla Complex, Scrip Code: 533263 Mumbai-400 051. Scrip Code: GREENPOWER Dear S
Slide 2: Leading Renewable Energy Generation Company
Leading Renewable Energy Generation Company
Slide 3: 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 4: Index
Index Transformation Strategy & Operational Progress Key Developments: Q1 FY20 Financial Highlights Operational 4 Outlook & Highlights Regulatory Appendix: ` Overview Financial 11 Statements 13 16 18 22 3
Slide 5: Transformation Strategy & Operational Progress
Transformation Strategy & Operational Progress
Slide 6: 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 7: High Potential disrupted by external factors
High Potential disrupted by external factors In Rs. cr EBITDA Revenues 461 433 402 385 384 305 338 309 293 307 302 230 213 246 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Finance Cost Depreciation 277 267 235 207 166 136 136 169 124 136 114 205 199 178 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Cash Profit
Slide 8: What has changed in recent times
What has changed in recent times Improvement in grid evacuation level 96.8 Increased frequency bandwidth for 95.8 96.3 95.7 95.5 95.3 renewables 94.8 Phase-wise shutting down of thermal power 93.1 plants during the wind season Request for expedition of 1,000 MW green energy corridor to help 10
Slide 9: Supported by Improvement in REC Mechanism
Supported by Improvement in REC Mechanism REC’s Outstanding in thousands • Sharp increase in RECs traded in FY18 & FY19 on stricter 494 516 implementation 420 • REC Trading volumes on energy exchanges set new records in FY18 • 100% realization of REC stocks 0 0 0 0 0 FY15 FY16 FY17 FY18 Q1 FY19 H1 F
Slide 10: Focus on Debt Reduction
Focus on Debt Reduction Debt (Rs. Cr) Interest Expense (Rs. Cr) 2,159 2,104 1,978 1,887 286 278 265 267 1,574 1,513 211 165 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 Interest / Revenue (%) EBITDA / Interest (x) 70% 64% 60% 58% 59% 49% 1.41 1.48 1.10 0.81 0.84 0.77 FY14 FY15 FY16 FY
Slide 11: Resulting in Improved Profitability
Resulting in Improved Profitability EBITDA (Rs. Cr) EBIT (Rs. Cr) 179 176 293 300 243 246 124 133 215 232 72 8 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 PAT (Rs. Cr) Cash Profit (Rs. Cr) (33) (96) (71) (188) 86 81 (233) 25 (340) FY14 FY15 FY16 FY17 FY18 FY19 (50) (47) (63) FY14 FY1
Slide 12: Key Developments: Q1 FY20
Or Key Developments: Q1 FY20
Slide 13: Key Developments – Q1 FY20
Key Developments – Q1 FY20 Wind Business – Steady start to the year amid uneven wind patterns Moderation in wind intensity during the beginning of the quarter negated in part the strong operational performance delivered during the quarter Consistent level of grid availability especially in TN co
Slide 14: Financial Highlights
Financial Highlights
Slide 15: Q1FY20 Consolidated Financial Performance
Q1FY20 Consolidated Financial Performance In Rs. Mn Q1 FY 20 Q1 FY19 Continued Operations: Revenue 944 994 EBITDA 720 766 EBITDA % 76% 77% EBIT 438 481 EBIT % 46% 48% Profit / (Loss) before tax 47 (6) Loss from Discontinued Operations (34) (22) Consolidated Profit / (Loss) before tax 13 (28) 14
Slide 16: Key Financial Highlights – Q1 FY20
Key Financial Highlights – Q1 FY20 Wind Business: Stable performance – performance would have been even better had it not been for moderation in wind intensity during the quarter. Grid availability remains steady especially in TN; grid availability for the Qtr. at 95.7% Support from regulators
Slide 17: Operational Highlights
Or Operational Highlights
Slide 18: Wind Operations
Wind Operations Unit of Particulars Q1 FY20 Q1 FY19 State Capacity (MW) Measurement Capacity (incl. overseas Tamil Nadu 308.3 Mw 425 425 capacity) Andhra Pradesh 75.40 Units Generated (Gross) Mn 190 195 Gujarat 29.2 Annualized PLF % 20.5 21.1 Karnataka 1.25 Average Gross Realisation (before charges
Slide 19: Outlook & Regulatory Overview
Outlook & Regulatory Overview
Slide 20: Outlook
Outlook Supportive macros coupled with Govt.’s efforts towards growing RE to drive business – Growth conducive policies by the Government in terms of viable tariffs, steady grid availability, flexible funding models and stricter compliance are enabling a predictable and buoyant business environmen
Slide 21: Renewable Energy Certificates
Renewable Energy Certificates The quarter witnessed steady increase in trading volumes with certificates trading above their floor prices – Demand continued to outstrip supply, resulting in higher yields – Average price realization at Rs.1437/Certificate during the current quarter as against Rs.10
Slide 22: Regulatory & Market Developments
Regulatory & Market Developments KERC notifies APPC rate for 2019-20 & truing up of 2018-19 – Karnataka notified the provisional APPC cost for FY 2019-20 & true up the Average Pooled Purchase Cost of 2018-19. – he difference of INR 21 paisa/unit will be paid by the ESCOMs to the RE generators conc
Slide 23: Appendix: Financial Statements
Appendix: Financial Statements
Slide 24: Financial Performance – Q1 FY20 (Consolidated – IND-AS)
Financial Performance – Q1 FY20 (Consolidated – IND-AS) Rs. Million Particulars Q1 FY20 Q1 FY19 Continuing Operations Sale of Power 805 846 Other Operating Income 128 97 Total Income 933 943 Total Operating Expenditure 224 228 Operational EBITDA 709 715 EBITDA (%) 75.9% 75.8% Other Income 11 51 Tota
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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