Orient Green Power Company Ltd · NSE:GREENPOWER
Orient Green Power — Q3 FY18 Earnings Presentation
30 slides from Orient Green Power's earnings presentation, Jan 25, 2018
Slide 1: Letter to exchanges: Investor Presentation and Press release
25th January, 2018 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
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: 9M FY18 Financial Highlights 4 Operational Outlook & Highlights Regulatory Appendix: ` Overview 15 Financial Statements 17 20 22 27 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 • Sale of Biomass business – removal of drag on business performance for leadership in renewable (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 Capacity addition ..and rising tariffs Wind Biomass Wind Biomass 534 531 521 6.61 510 6.33 6.39 86 106 106 96 5.96 5.95 390 Rs. / Unit 5.21 61 4.84 MW 5.52 5.5 5.44 424 428 425 425 5.07 329 4.62 3.96 4.01 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 M
Slide 8: Turnaround in performance underway
Turnaround in performance underway Improvement in grid evacuation level Sustained grid availability in recent quarters Increased frequency bandwidth for Grid Availability (%) renewables 94.0 94.0 96.0 95.0 95.0 93.9 81.8 77.2 Phase-wise shutting down of thermal power plants during the wind seaso
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 FY17 & FY18 on stricter 494 516 implementation 420 • OGPL recorded best ever REC 280 230 Revenues of INR 65 crore in FY18 • REC Trading volumes on energy exchanges set new records in FY18 FY14
Slide 10: Focus on Debt Reduction
Focus on Debt Reduction Debt (Rs. Cr) Interest Expense (Rs. Cr) 9% -7% 2,159 2,104 1,978 1,887 1,825 286 265 278 267 199 177 FY14 FY15 FY16 FY17 9MFY18 FY14 FY15 FY16 FY17 9MFY17 9MFY18 Interest / Revenue (%) EBITDA / Interest (x) 70% 64% 60% 58% 1.62 53% 45% 1.36 1.10 0.81 0.84 0.77 FY14 FY15 FY16
Slide 11: Interest cost reduction to be visible henceforth
Interest cost reduction to be visible henceforth Amount Component FY16 FY17 FY18 FY19 (Rs.cr) Interest Cost Interest Cost Interest Cost Rate (%) (Rs.cr) Rate (%) (Rs.cr) Rate (%) (Rs.cr) Biomass Debt 350 18% 63 18% 63 TRANSFERRED Wind Debt To work on 5/25 Scheme Implemented ~765 14% 107 13% 100 12%
Slide 12: Resulting in Improved Profitability
Resulting in Improved Profitability EBITDA (Rs. Cr) EBIT (Rs. Cr) 23% +15.6x 179 180 293 147 271 287 125 243 232 215 72 8 FY14 FY15 FY16 FY17 9MFY17 9MFY18 FY14 FY15 FY16 FY17 9MFY17 9MFY18 PAT (Rs. Cr) Cash Profit (Rs. Cr) 1.5 FY14 FY15 FY16 FY17 9MFY17 9MFY18 109 (9) 72 (96) 25 (188) (233) FY14 FY
Slide 13: Rationale – Sale of Biomass business
Rationale – Sale of Biomass business 276 223 145 • Biomass business contributed to about 30 to (Rs. Cr) 101 40% of the Co.’s losses over last 3 years 61 66 FY15 FY16 FY17 Total loss Biomass loss 65% 67% 71% 224 • Average EBITDA margin of wind business has been 68% as against negative 3% for biomass
Slide 14: OGPL is now firmly on a path towards profitability
OGPL is now firmly on a path towards profitability Total Revenue (Rs. Cr) EBITDA (Rs. Cr) 500 461 402 402 386 389 317 293 287 271 243 235 214 186 FY15 FY16 FY17 9M FY15 9M FY16 9M FY17 9M FY18 FY15 FY16 FY17 9M FY15 9M FY16 9M FY17 9M FY18 Depreciation (Rs. Cr) Interest (Rs. Cr) 207 179 168 286 278
Slide 15: Green shoots – on the back of strategic and structural initiatives
Green shoots – on the back of strategic and structural initiatives Conducive environment Significant improvement of Grid Availability in TN – frequency of grid back down has reduced substantially and for Wind consistent grid availability is expected to sustain henceforth Business Sale of Complet
Slide 16: Key Developments: 9M FY18
‘CoP Key Developments: 9M FY18
Slide 17: Key Developments – 9M FY18
Key Developments – 9M FY18 Improved operational performance and recent strategic initiatives help deliver strong performance Strong performance of Wind business coupled with recent initiatives aimed towards improving cost efficiencies and debt rationalization helped in delivering higher profitabil
Slide 18: Financial Highlights
Financial Highlights
Slide 19: 9MFY18 Financial Performance
9MFY18 Financial Performance In Rs. Mn Wind Biomass TOTAL 9M FY18 9M FY17 % 9M FY18 9M FY17 % 9M FY18 9M FY17 % REVENUES 3556.0 3269.4 9% 335.7 586.4 -43% 3891.7 3855.8 1% EBITDA 2837.8 2643.2 7% 27.3 70.9 -61% 2865.1 2714.1 6% EBITDA% 80% 81% 8% 12% 74% 70% EBIT 1897.0 1642.9 15% -95.4 (173.6) -45%
Slide 20: Key Financial Highlights – 9M FY18
Key Financial Highlights – 9M FY18 Wind Business: Delivered strong performance; supportive macros to help sustain the momentum Revenue for 9M FY18 grew by 9% to Rs. 3556 mn compared to Rs. 3,269 mn; EBITDA improved to Rs. 2837 mn from Rs. 2,643 mn during the corresponding period last year. Expec
Slide 21: Operational Highlights
‘CoP Operational Highlights
Slide 22: Wind Operations
State Wind Operations Unit of 9M 9M Particulars State Capacity (MW) Measurement FY18 FY17 Capacity (incl. overseas capacity) Mw 425 425 Tamil Nadu 308.3 Andhra Pradesh 75.40 Units Generated (Gross) Mn 637 630 Gujarat 29.2 Annualized PLF % 23 23 Karnataka 1.25 Average Gross Realisation (before Europe
Slide 23: Outlook & Regulatory Overview
Outlook & Regulatory Overview
Slide 24: Outlook - Wind
Outlook - Wind Improving macros – structurally positive for the business – Sharp improvement in grid infrastructure a structurally positive development for the business enabling smooth & greater transmission of power from generating unit to grid for distribution – Encouraging operating environment
Slide 25: Outlook - Biomass
Outlook - Biomass Completed sale of 8 biomass units to Janati Bio Power Pvt. Ltd, subsidiary of promoter - SVL – Completed sale of 8 biomass units to Janati Bio Power Pvt. Ltd. (subsidiary of its promoter – SVL Ltd.) on December 31, 2017 for an equity consideration of Rs. 80 crore – In addition to
Slide 26: Renewable Energy Certificates
Renewable Energy Certificates Improved demand from Discoms as well as captive generators resulted in strong trading in REC’s during the quarter. Volumes are expected to remain elevated over the coming months on the back of regulatory pressure. December 2017, trading session witnessed highest eve
Slide 27: Regulatory & Market Developments
Regulatory & Market Developments TNERC revises rate of power purchase with respect to Wind Energy REC generators (source) REC WEGs availed REC WEGs not availed Accelerated Accelerated Depreciation Depreciation 2016-17 2017-18 2016-17 2017-18 APPC Rate 3.96 3.70 3.96 3.70 Revised Pref. Tariff as pe
Slide 28: Appendix: Financial Statements
Appendix: Financial Statements
Slide 29: Financial Performance – 9M FY18 (Consolidated – IND-AS)
Financial Performance – 9M FY18 (Consolidated – IND-AS) Rs. Million 9M FY18 9M FY17 Y-o-Y (%) Sale of Power 3098.24 3345.43 -7 Other Operating Income 427.60 387.03 10 Total Income 3525.84 3732.46 -6 Expenditure Cost of biomass fuel 171.73 273.02 -37 O&M and other costs 854.92 868.75 -2 Total Expendi
Slide 30: 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
Orient Green Power Company — Q3 FY18 Earnings Presentation on 6ix