Orient Green Power Company Ltd · NSE:GREENPOWER
Orient Green Power — H1 FY19 Earnings Presentation
24 slides from Orient Green Power's earnings presentation, 2018
Slide 1: Leading Renewable Energy Generation Company
Leading Renewable Energy Generation Company
Slide 2: 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 3: Index
Index Transformation Strategy & Operational Progress Key Developments: H1 FY19 Financial Highlights Operational 4 Outlook & Highlights Regulatory Appendix: ` Overview Financial 11 Statements 13 16 18 22 3
Slide 4: Transformation Strategy & Operational Progress
Transformation Strategy & Operational Progress
Slide 5: 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 6: High Potential disrupted by external factors
High Potential disrupted by external factors In Rs. cr EBITDA Revenues 461 433 402 385 384 305 309 293 307 302 230 213 FY16 FY17 FY18 FY16 FY17 FY18 Finance Cost Depreciation 277 267 235 207 136 136 169 124 136 205 199 178 FY16 FY17 FY18 FY16 FY17 FY18 Cash Profit Profit before Tax 110 129 -26 5 25
Slide 7: What has changed in recent times
What has changed in recent times Improvement in grid evacuation level 95.5 95.1 95.5 93.9 97.4 95.0 Increased frequency bandwidth for 93.1 77.2 renewables Phase-wise shutting down of thermal power plants during the wind season Request for expedition of 1,000 MW green energy corridor to help 10
Slide 8: 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 • REC Trading volumes on energy exchanges set new records in FY18 • 100% realization of REC stocks 0 0 FY15 FY16 FY17 FY18 H1 FY19 Traded REC
Slide 9: 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 1,585 235 108 FY14 FY15 FY16 FY17 FY18 H1 FY19 FY14 FY15 FY16 FY17 FY18 H1 FY19 Interest / Revenue (%) EBITDA / Interest (x) 70% 64% 60% 61% 1.89 58% 45% 1.28 1.10 0.81 0.84 0.77 FY14 FY15 F
Slide 10: Resulting in Improved Profitability
Resulting in Improved Profitability EBITDA (Rs. Cr) EBIT (Rs. Cr) 179 302 165 293 146 243 232 124 215 204 72 8 FY14 FY15 FY16 FY17 FY18 H1 FY19 FY14 FY15 FY16 FY17 FY18 H1 FY19 PAT (Rs. Cr) 32 Cash Profit (Rs. Cr) (96) (71) (188) 96 (233) 67 25 (340) FY14 FY15 FY16 FY17 FY18 H1 FY19 (50) (47) (63) F
Slide 11: Key Developments: H1 FY19
Or Key Developments: H1 FY19
Slide 12: Key Developments – H1 FY19
Key Developments – H1 FY19 Wind Business – Maintaining growth momentum Diversified asset base and improving macros have resulted in strong momentum in revenue and EBITDA growth in recent years. Marked improvement of Grid Availability (95%) in TN – sharp reduction in frequency of grid back down a
Slide 13: Financial Highlights
Financial Highlights
Slide 14: H1 FY19 Consolidated Financial Performance
H1 FY19 Consolidated Financial Performance In Rs. Mn H1 2018-19 H1 2017-18 Continued Operations: Revenue 2,491 2,962 EBITDA 2,044 2,426 Margins % 82.1% 81.9% EBIT 1,456 1,794 EBIT % 58.5% 60.5% PBT 374 714 Discontinued Operations PBT (48) (188) Consol PBT 326 526 1. Late start to the wind season res
Slide 15: Key Financial Highlights – H1 FY19
Key Financial Highlights – H1 FY19 Wind Business: Strong Q2 performance offsetting the soft performance delivered in the previous quarter, owing to delayed onset of the wind season. Expect business momentum to continue: – Supportive macros : • Consistent grid availability especially in TN; grid
Slide 16: Operational Highlights
Or Operational Highlights
Slide 17: Wind Operations
Wind Operations Unit of Particulars H1 FY19 H1 FY18 State Capacity (MW) Measurement Capacity (incl. overseas Tamil Nadu 308.3 Mw 425 425 capacity) Andhra Pradesh 75.40 Units Generated (Gross) Mn 513 526 Gujarat 29.2 Annualized PLF % 27.5 28.2 Karnataka 1.25 Average Gross Realisation (before charges
Slide 18: Outlook & Regulatory Overview
Outlook & Regulatory Overview
Slide 19: Outlook - Wind
Outlook - Wind Positive business outlook on the back of improving macros – Supportive Govt. policies in terms of improving grid availability, introducing innovative project funding models and working towards developing favorable viable tariff regime. – Improving macros coupled with Company’s strat
Slide 20: Renewable Energy Certificates
Renewable Energy Certificates Elevated trading volumes during the quarter; maintained positive momentum from previous Qtr. – Zero inventory for the third consecutive quarter. Strong volumes on the back of higher demand and limited availability resulted in most of the certificates getting traded
Slide 21: Regulatory & Market Developments
Regulatory & Market Developments TNERC announces the pooled cost of power purchase for FY19 – – Rs.3.97 per unit subject to the maximum of 75% of the preferential tariff fixed by the Commission to that category / subcategory of NCES generators i.e. Rs.3.97 per unit or 75% of the preferential tarif
Slide 22: Appendix: Financial Statements
Appendix: Financial Statements
Slide 23: Financial Performance – H1 FY19 (Consolidated – IND-AS)
Financial Performance – H1 FY19 (Consolidated – IND-AS) Rs. Million H1 FY19 H1 FY18 Continued Operations Sale of Power 2,166 2,344 Other Operating Income 241 322 Total Income 2,407 2,666 O & M and Other costs 448 536 Total Expenditure 448 536 Operational EBITDA 1,959 2,130 EBITDA (%) 81.4% 79.9% Oth
Slide 24: 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 — H1 FY19 Earnings Presentation on 6ix