Orient Green Power Company Ltd · NSE:GREENPOWER
Orient Green Power — FY2020 Earnings Presentation
28 slides from Orient Green Power's earnings presentation, Jun 10, 2020
Slide 1: Filing cover letter to BSE and NSE
10th June 2020 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 Sir
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: FY20 Impact of COVID-19 on Business 4 Financial Highlights Operational Highlights Outlook & 11 Regulatory Appendix: Overview Financial 13 Statements 16 19 21 25 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 461 433 402 385 384 389 302 305 338 309 293 307 246 282 230 213 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Finance Cost Depreciation 169 136 136 136 124 114 277 267 91 235 166 153 205 199 178 FY16 FY17 FY18 FY19 FY20 FY16
Slide 8: What has changed in recent times
What has changed in recent times Improvement in grid evacuation level 97.5 96.8 Increased frequency bandwidth for 95.5 95.8 95.7 95.0 renewables 93.9 Phase-wise shutting down of thermal power 92.8 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 Traded REC Revenue INR Crs 78 • Zero stock of issued RECs as of Mar 31, 2020. • REC prices steadily improving over last few quarters. 45 • Maintaining zero stock of RECs since 38 Apr’2018. 28 28 • The Supreme Court has granted stay in respect of retrospectiv
Slide 10: Focus on Debt Reduction
Focus on Debt Reduction Debt (Rs. Cr) Interest Expense (Rs. Cr) 1,978 1,887 278 267 1,574 1,513 1,351 211 165 153 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Interest / Revenue (%) EBITDA / Interest (x) 70% 60% 59% 1.84 49% 1.41 1.48 39% 1.10 0.77 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 F
Slide 11: Resulting in Improved Profitability
Resulting in Improved Profitability EBITDA (Rs. Cr) EBIT (Rs. Cr) 190 176 293 300 282 246 124 133 232 8 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Cash Profit (Rs. Cr) PAT (Rs. Cr) 37 128 86 81 (33) (71) 25 (96) (63) (340) FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 10
Slide 12: Key Developments: FY20
Or Key Developments: FY20
Slide 13: Key Developments – FY20
Key Developments – FY20 Efforts towards debt rationalization remains on track – expect liquidity and cash flow improvement In regular discussion with bankers for lowering interest costs & improving liquidity by extending loan tenures – Efforts underway to refinance existing debt, expect some posit
Slide 14: Impact of COVID-19 on Business
Impact of COVID-19 on Business
Slide 15: COVID-19 – Update
COVID-19 – Update Business impact post COVID-19 Pandemic • As power generation comes under essential services, all our WEG’s generated power without any interruption during lock down period. No impact on Generation of power. • In TN, customers offtake is lower since Apr’20 due to lockdown. Consumpti
Slide 16: COVID-19 – Update ….2
COVID-19 – Update ….2 Financial Impact • Impact – staggered cash flows • Additional expenses may be incur due to the COVID-19 pandemic • Delay in collection from AP discom has impacted the working capital position. • The Company has availed moratorium from banks for outstanding dues as per RBI direc
Slide 17: Financial Highlights
Financial Highlights
Slide 18: FY20 Consolidated Financial Performance
FY20 Consolidated Financial Performance In Rs. Mn FY20 FY19 Continuing Operations: Revenue 3,886 3,389 EBITDA 2,820 2,465 EBITDA % 73% 73% EBIT 1,905 1,327 EBIT % 49% 39% Profit / (Loss) before tax 370 (330) Discontinued Operations PBT (172) (155) Consolidated Profit / (Loss) before tax 198 (485) 17
Slide 19: Key Financial Highlights – FY20
Key Financial Highlights – FY20 Wind Business: Higher unit generation and efforts towards driving down cost & improving efficiencies drives the revival in FY20 performance Partial receipt of outstanding debt AP Govt. cleared a part of its outstanding dues during the year – easing the liquidity p
Slide 20: Operational Highlights
Or Operational Highlights
Slide 21: Wind Operations
Wind Operations Unit of Particulars FY20 FY19 State Capacity (MW) Measurement Capacity (incl. overseas Tamil Nadu 306 Mw 421 425 capacity) Andhra Pradesh 74 Units Generated (Gross) Mn 644 683 Gujarat 29 Annualized PLF % 17 18 Karnataka 1 Average Gross Realisation (before charges and without Rs./ Uni
Slide 22: Outlook & Regulatory Overview
Outlook & Regulatory Overview
Slide 23: Outlook
Outlook Structurally positive on the sector – Covid-19 pandemic poses near term challenges for the business – While the long term outlook for the business remains positive – Improving operating environment; transparent & predictable policy environment & buoyancy in REC market augurs well for the b
Slide 24: Renewable Energy Certificates
Renewable Energy Certificates Buoyancy in REC trading continued to remain elevated in FY20 on the back of strong demand – Strong demand on the back of stringent regulatory actions resulted in higher trading and improved yield. – Rising demand pushes certificate prices to Rs. 2,100 in January 2020
Slide 25: Regulatory & Market Developments
Regulatory & Market Developments Karnataka extends Renewable Purchase Obligation timeline for Obligated Entities – Karnataka Electricity Regulatory Commission gave an extension to the obligated entities under the Renewable Purchase Obligation (RPO) mechanism to fulfil their obligations. The relaxa
Slide 26: Appendix: Financial Statements
Appendix: Financial Statements
Slide 27: Financial Performance – FY20 (Consolidated – IND-AS)
Financial Performance – FY20 (Consolidated – IND-AS) Rs. Million Particulars FY20 FY19 Continuing Operations Sale of Power 2,721 2,858 Operating Income 510 374 Fixed charges reimbursement 458 - Fair value gain on modification of loan - 319 Total Income 3,689 3,551 Total Operating Expenditure 1066 91
Slide 28: For further information please contact
For further information please contact Ms.Kotteswari Orient Green Power Company Limited Tel: +91 44 4901 5678 Email: kotteswari.j@orientgreenpower.com Mayank Vaswani / Suraj Digawalekar CDR India Tel: +91 98209 40953 / 98211 94418 Email: mayank@cdr-india.com suraj@cdr-india.com
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