Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — Q1 FY2020 Earnings Presentation
49 slides from Adani Energy Solutions's earnings presentation, Aug 8, 2019
Slide 1: Q1 FY 2020 Results Presentation
Adani Transmission Limited Q1 FY 2020 Results Presentation 8 August 2019 Conference Call Dial-in is on the last page
Slide 2: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Transmission Limited (together any updates or revisions to any statements contained hereinto reflect any change in events, with its subsidiaries, the “Company” or “ATL”) to you solely for your reference and for info
Slide 3: Table of Contents
Table of Contents 1) Overview 2) ESG 3) Addressable Market for ATL 4) Operational Highlights 5) Financial Highlights 6) Appendix Q1 FY20 Results Presentation STRICTLY CONFIDENTIAL
Slide 4: Overview
Overview Q1 FY20 Results Presentation STRICTLY CONFIDENTIAL
Slide 5: Q1 FY20 – Key Highlights
Q1 FY20 – Key Highlights Operational Transmission: Average Availability 99.93%, Incentive earned Rs. 13 crore Distribution: AT&C loss reduced by 0.99 p.p. in Q1 FY20 vs. Q1 FY19 Consolidated: Financial • Operational EBITDA of Rs. 1,199 crore, up 139% yoy • Comparable PAT of Rs. 213 crore, up 8
Slide 6: Q1 FY20 - Key Financial Highlights
Q1 FY20 - Key Financial Highlights (Rs. in crore) Operational Revenue 426% YoY 1,199 Operational EBITDA 139% YoY 2,858 25% QoQ 37% QoQ 2,282 876 584 2,189 352 1,696 615 523 502 668 586 543 Q1 FY20 Q4 FY19 Q1 FY19 Q1 FY20 Q4 FY19 Q1 FY19 Transmission Distribution Transmission Distribution Transmissio
Slide 7: Executive Summary
Executive Summary Continued operational excellence across Transmission assets: 99.93% availability in Q1 Performance Focused on maximising incentives Distribution loss reduced by 0.99 p.p. yoy Large addressable opportunity for the private sector in T&D. Pursuing growth in a disciplined manne
Slide 8: ESG
ESG Q1 FY20 Results Presentation STRICTLY CONFIDENTIAL
Slide 9: Safety – Always First
Safety – Always First A technician working at transmission site wearing safety gear Safety Initiatives SafeEye: Program enabling identification of even small safety issues SafeConnect: Monthly call where all employees share their contribution to Safety for mutual learning SafeAlert: Learning f
Slide 10: Sustainability and Communities
Sustainability and Communities Communities Community engagement commences in early stages of projects, and runs through Mangrove afforestation programme the entire project lifecycle carried out by habitants near our ATL employees contribute towards CSR site in Kutch, Gujarat activities No comm
Slide 11: Sustainability and Governance Reporting
Sustainability and Governance Reporting Published Integrated Annual Report FY19 based on Integrated Reporting framework Focus on Governance and Transparency Emphasis on actions to contribute to UNSDGs 11 Q1 FY20 Results Presentation
Slide 12: Large Addressable Market for ATL
Large Addressable Market for ATL Q1 FY20 Results Presentation STRICTLY CONFIDENTIAL
Slide 13: Transmission: Large Addressable Market for ATL
Transmission: Large Addressable Market for ATL Private sector participation has been increasing Total share in Transmission Lines (Ckt kms; =>220 KV) Incremental share in New Transmission Lines (Ckt kms; =>220 KV) 100% 3% 7% 7% 90% 60% 51% 49% 80% 47% 50% 45% 44% 70% 41% 41% 39% 73% 72% 67% 61% 55%
Slide 14: Transmission Business: Project Updates
Transmission Business: Project Updates Commissioned 7 new lines in FY 19 Project Pipeline of 2,739 ckt km 7 new lines of 2,0841 ckt km commissioned before Won two new TBCB projects in Q2 FY20, taking total scheduled commissioning and below budget under construction projects to six FY20e Revenu
Slide 15: Operational Highlights
Operational Highlights Q1 FY20 Results Presentation STRICTLY CONFIDENTIAL
Slide 16: Transmission Business: Operating Performance Underpinned by Strong Capabilities
Transmission Business: Operating Performance Underpinned by Strong Capabilities Strong operational capabilities and focus on incentive maximization… Availability Across Operational Assets (%) Focus on Maximizing Incentives (%) Q1 FY19 Q4 FY19 Q1 FY20 Normative Incentive 99.97% 99.76% 99.93% 100.00%
Slide 17: Distribution Business (AEML): Improvement in performance post acquisition
Distribution Business (AEML): Improvement in performance post acquisition Distribution Losses (%) Supply Reliability – MERC (%) 99.99% 8.77% 99.98% 7.78% Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 E-payments (%) Transformer Capacity (MVA) 47.0% 8,637 8,812 37.0% 3,690 3,775 DT PT 4,947 5,037 Q1 FY19 Q1 FY20 Q1
Slide 18: Distribution Business (AEML): Customer Mix
Distribution Business (AEML): Customer Mix Customer-wise Sales Mix Customer-wise Revenue Mix Total MUs sold (Q1 FY20): 2,422 million units Total Revenue (Q1 FY 20): Rs. 2,054 crore Q1 FY20 9% Q1 FY20 10% 10% 10% Q1 FY19 Q1 FY19 47%46% 52% 52% 39% 38% 43% 44% Residential Commercial Industrial Residen
Slide 19: Financial Highlights
Financial Highlights Q1 FY20 Results Presentation STRICTLY CONFIDENTIAL
Slide 20: P&L: Q1 FY20 vs. Q1 FY19 (Consolidated) (1/3)
P&L: Q1 FY20 vs. Q1 FY19 (Consolidated) (1/3) (Rs. in crore) Q1 FY20 Q1 FY19 Sr No. Particulars % change (Consolidated) (Consolidated) 1 Revenue 1.1 Net Transmission Charges 2,845 529 1.1.a Transmission Charges 2,846 531 436% 1.1.b Less: Rebate -1 -2 1.2 Incentive on availability 13 14 2 Expenses: 2
Slide 21: P&L: Q1 FY20 vs. Q1 FY19 (Consolidated) (2/3)
P&L: Q1 FY20 vs. Q1 FY19 (Consolidated) (2/3) (Rs. in crore) Q1 FY20 Q1 FY19 Sr No. Particulars % change (Consolidated) (Consolidated) 3=(1-2) EBITDA (From Operation) 1,199 502 139% Operational EBITDA Margin 42% 92% 4 Add: 4.1 Sale of Traded Goods/EPC 0 68 4.2 Construction income - 5 4.3 Carrying Co
Slide 22: P&L: Q1 FY20 vs. Q1 FY19 (Consolidated) (3/3)
P&L: Q1 FY20 vs. Q1 FY19 (Consolidated) (3/3) (Rs. in crore) Q1 FY20 Q1 FY19 Sr No. Particulars % change (Consolidated) (Consolidated) 6=(3+4-5) EBITDA 1,226 579 112% 7 Finance Cost 532 211 8 Depreciation 285 146 9=(6-7-8) PBT(before one time income) 409 222 10 Arrears/Exceptional Items: -88 - 10.1
Slide 23: P&L: Q1 FY20 vs. Q1 FY19 (Transmission) (1/2)
P&L: Q1 FY20 vs. Q1 FY19 (Transmission) (1/2) (Rs. in crore) Q1 FY20 Q1 FY19 Sr No. Particulars % change (Transmission) (Transmission) 1 Revenue 1.1 Net Transmission Charges 656 529 1.1.a Transmission Charges 657 531 24% 1.1.b Less: Rebate -2 -2 1.2 Incentive on availability 13 14 2 Expenses: 2.1 Op
Slide 24: P&L: Q1 FY20 vs. Q1 FY19 (Transmission) (2/2)
P&L: Q1 FY20 vs. Q1 FY19 (Transmission) (2/2) (Rs. in crore) Q1 FY20 Q1 FY19 Sr No. Particulars % change (Transmission) (Transmission) 3=(1-2) EBITDA (From Operation) 615 502 23% Operational EBITDA Margin 92% 92% 4 Add: 4.1 Sale of Traded Goods/EPC - 68 4.2 Construction income - 5 4.3 Carrying Cost
Slide 25: P&L: Q1 FY20 vs. Q1 FY19 (Transmission) (3/3)
P&L: Q1 FY20 vs. Q1 FY19 (Transmission) (3/3) (Rs. in crore) Q1 FY20 Q1 FY19 Sr No. Particulars % change (Transmission) (Transmission) 6=(3+4-5) EBITDA 622 579 7 Finance Cost 255 211 8 Depreciation 164 146 9=(6-7-8) PBT 203 222 10.1 Tax 45 48 10.2 Deferred Tax 1 5 11=(9-10) PAT 157 169 12 Interest o
Slide 26: Transmission Business: Revenue Bridge YoY
Transmission Business: Revenue Bridge YoY (Rs. in crore) 700 136 650 600 550 2 15 7 500 450 656 400 529 350 300 250 200 Q1 FY20 Due to Newly KEC Bikaner MEGPTCL Normal WTPL & WTGL Q1 FY19 Operational SPVs Acquisition Q4 revenue decrease revenue decrease 2019 as per TSA 26 Q1 FY20 Results Presentatio
Slide 27: Transmission Business: Operating EBITDA Bridge YoY
Transmission Business: Operating EBITDA Bridge YoY (Rs. in crore) 650 126 600 550 1 12 500 450 400 615 350 502 300 250 200 Q1 FY20 Revenue (see Incentive Operating & Q1 FY19 Revenue bridge) Employee benefit Expense 27 Q1 FY20 Results Presentation Notes: AEML (Distribution business) acquired on 29 th
Slide 28: P&L: Q1 FY20 vs. Q1 FY19 (Distribution - AEML) (1/2)
P&L: Q1 FY20 vs. Q1 FY19 (Distribution - AEML) (1/2) (Rs. in crore) Q1 FY 20 Q1 FY 19 Particulars % change (Distribution) (Distribution) MU's Sold 2,422 2,364 2% Avg Realisation Rate excl FAC/ RA 8.3 7.7 8% Revenue : Income from Sale of Energy 2,054 1,916 Less - Discount for Prompt payment of Bills
Slide 29: P&L: Q1 FY20 vs. Q1 FY19 (Distribution - AEML) (2/2)
P&L: Q1 FY20 vs. Q1 FY19 (Distribution - AEML) (2/2) (Rs. in crore) Q1 FY 20 Q1 FY 19 Particulars % change (Distribution) (Distribution) Expenses : External power purchase 817 843 Cost of Fuel 290 338 Transmission Charges 100 109 Operation and Maintanance Expenses 159 133 Employee Benefits Expense 2
Slide 30: Distribution Business (AEML): Revenue Bridge YoY
Distribution Business (AEML): Revenue Bridge YoY (Rs. in crore) 2,100 90 2,050 2,000 56 1,950 7 2 1,900 1,850 2,044 1,800 1,750 1,909 1,700 1,650 1,600 Q1 FY20 Sale of Energy Fuel Adjustment Transmission Dics. On prompt Q1 FY19 Charges revenue payment 30 Q1 FY20 Results Presentation Notes: AEML (Dis
Slide 31: Distribution Business (AEML): EBITDA Bridge YoY
Distribution Business (AEML): EBITDA Bridge YoY (Rs. in crore) 650 136 600 550 12 67 500 84 12 450 27 400 604 350 502 300 250 200 Q1 FY20 Income from Wheeling Other Cost Of Power Operation and Employee Q1 FY19 Sale of Energy charges & CSS Operational & Fuel Maintanance Benefits from Income Purchased
Slide 32: Financing Prowess: Diversified funding sources and focus on debt maturity & cost rationalization
Financing Prowess: Diversified funding sources and focus on debt maturity & cost rationalization Extended Maturity Profile: Diversified Debt Mix - based on FY19 Debt1 Improved Returns and Low Refinancing Risk 1% FY16 FY19 4% 2% 14% 12% 12% 19% 18% 23% 60% 65% 69% INR Bond INR Masala Bond US$ Bond Lo
Slide 33: ATL portfolio at a glance
ATL portfolio at a glance Q1 FY20 Results Presentation STRICTLY CONFIDENTIAL
Slide 34: Adani Transmission Asset Portfolio
Adani Transmission Asset Portfolio ATL Shareholding structure as on 30th June 2019: Adani Transmission Limited Promoters: 74.9% , Public: 25.1% Under 100% 100% 74% (1) 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% acquisition ATSCL & WTGL, Acquired PPP Ghatam- Obra-C WRSS – Bikaner - A
Slide 35: Fastest growing footprint in India
Fastest growing footprint in India Operational Assets – 11,348 ckm & 18,330 MVA Projects Under Execution – 2,869 ckm & 4,950 MVA Centre vs State Capacity Mix Fixed Return vs Fixed Tariff Mix (in terms of asset base) (Ckt Kms) Fixed Return Centre Fixed Tariff State 36% 41% (Rs. 275 bn / (14,217 US$ 4
Slide 36: Appendix: Financial
Appendix: Financial Q1 FY20 Results Presentation STRICTLY CONFIDENTIAL
Slide 37: P&L: Q1 FY20 vs. Q4 FY19 (Consolidated) (1/3)
P&L: Q1 FY20 vs. Q4 FY19 (Consolidated) (1/3) (Rs. in crore) Q1 FY20 Q4 FY19 Sr No. Particulars % change (Consolidated) (Consolidated) 1 Revenue 1.1 Net Transmission & Distribution Charges 2,845 2,271 1.1.a Transmission & Distribution Charges 2,846 2,272 25% 1.1.b Less: Rebate -1 -1 1.2 Incentive on
Slide 38: P&L: Q1 FY20 vs. Q4 FY19 (Consolidated) (2/3)
P&L: Q1 FY20 vs. Q4 FY19 (Consolidated) (2/3) (Rs. in crore) Q1 FY20 Q4 FY19 Sr No. Particulars % change (Consolidated) (Consolidated) 3=(1-2) EBITDA (From Operation) 1,199 876 37% Operational EBITDA Margin 42% 38% 4 Add: 4.1 Sale of Traded Goods/EPC 0 264 4.2 Other Income 32 24 5 Less: 5.1 Purchase
Slide 39: P&L: Q1 FY20 vs. Q4 FY19 (Consolidated) (3/3)
P&L: Q1 FY20 vs. Q4 FY19 (Consolidated) (3/3) (Rs. in crore) Q1 FY20 Q4 FY19 Sr No. Particulars % change (Consolidated) (Consolidated) 6=(3+4-5) EBITDA 1,226 895 7 Finance Cost 532 436 22% 8 Depreciation 285 276 9=(6-7-8) PBT(before one time income) 409 183 10 Arrears/Exceptional Items: -88 32 10.1
Slide 40: P&L: Q1 FY20 vs. Q4 FY19 (Transmission) (1/2)
P&L: Q1 FY20 vs. Q4 FY19 (Transmission) (1/2) (Rs. in crore) Q1 FY20 Q4 FY19 Sr No. Particulars % change (Transmission) (Transmission) 1 Revenue 1.1 Net Transmission Charges 656 575 14% 1.1.a Transmission Charges 657 576 1.1.b Less: Rebate -1 -1 1.2 Incentive on availability 13 11 2 Operating Expens
Slide 41: P&L: Q1 FY20 vs. Q4 FY19 (Transmission) (2/2)
P&L: Q1 FY20 vs. Q4 FY19 (Transmission) (2/2) (Rs. in crore) Q1 FY20 Q4 FY19 Sr No. Particulars % change (Transmission) (Transmission) 3=(1-2) EBITDA (From Operation) 615 523 17% Operational EBITDA Margin 92% 89% 4 Add: 4.1 Sale of Traded Goods/EPC - 260 4.2 Other Income - Treasury 12 2 5 Less: 5.1
Slide 42: P&L: Q1 FY20 vs. Q4 FY19 (Distribution - AEML) (1/2)
P&L: Q1 FY20 vs. Q4 FY19 (Distribution - AEML) (1/2) (Rs. in crore) Q1 FY 20 Q4 FY 19 Particulars % change (Distribution) (Distribution) MU's Sold 2,417 1,798 34% Avg Realisation Rate excl FAC/ RA 8.3 8.3 0.2% Revenue : Income from Sale of Energy 2,054 1,602 Less - Discount for Prompt payment of Bil
Slide 43: P&L: Q1 FY20 vs. Q4 FY19 (Distribution - AEML) (2/2)
P&L: Q1 FY20 vs. Q4 FY19 (Distribution - AEML) (2/2) (Rs. in crore) Q1 FY 20 Q4 FY 19 Particulars % change (Distribution) (Distribution) Expenses : External power purchase 817 564 Cost of Fuel 290 251 Transmission Charges 100 90 Operation and Maintanance Expenses 159 220 Employee Benefits Expense 23
Slide 44: Credit Rating
Credit Rating Rating Agency Facility Rating/Outlook Fitch Dollar Bond, Masala Bond BBB-/Stable International S&P Dollar Bond, Masala Bond BBB-/Stable Moody’s Dollar Bond, Masala Bond Baa3/Stable Rating Agency Facility Rating/Outlook India Ratings NCD IND AA+/stable India Ratings CP IND A1+ Domestic
Slide 45: Credit Rating – ATL Subsidiaries
Credit Rating – ATL Subsidiaries Company Rating Agency Rating Outlook ATL CARE, India Rating AA+ Stable AEML CARE AA Stable RRWTL Brickwork A- Stable STL CARE A- Positive CWRTL CARE A+ Positive ATRL Brickwork A- Stable HPTSL CARE BBB + Positive BPTSL CARE A- Stable TPTSL CARE A- Stable WTGL India Ra
Slide 46: Consolidated Debt Profile – Q1 FY20 vs. Q4 FY19
Consolidated Debt Profile – Q1 FY20 vs. Q4 FY19 (Rs. in crore) Particulars Q1 FY20 Q4 FY19 Obligor 6,791 7,224 GMR/WRSSS 1,002 1,028 Recently Operational Projects 2,310 2,152 Under Construction Projects 53 50 AEML 8,362 8,246 Sub total (a) 18,518 18,700 Less: Cash (b) 985 914 Total (a-b) 17,533 17,7
Slide 47: Appendix: AEML Business Overview
Appendix: AEML Business Overview Q1 FY20 Results Presentation STRICTLY CONFIDENTIAL
Slide 48: Snapshot of AEML Business
Snapshot of AEML Business Distribution Billing Customer (Lakh) 24.74 Total connections (Lakh) 30.391 Reliability : ASAI (%) 99.99% Distribution Loss (%) 7.78% Collection Efficiency (%) 94.71% Transmission Transformation capacity (MVA) 3,125 Transmission lines (Ckt kms) 541 System Availability (%) 99
Slide 49: Conference Call Information: 8th August, 2019
Conference Call Information: 8th August, 2019, 07:00 pm Universal Dial-In +91 22 6280 1448 +91 22 7115 8332 International Toll Free Hong Kong 800964448 Singapore 8001012045 UK 08081011573 USA 18667462133 International Toll Hong Kong 852-30186877 Singapore 65-31575746 UK 44-2034785524 USA 1-323-38687