Suzlon Energy Ltd · NSE:SUZLON
Suzlon Energy — Q2 FY2020 Earnings Presentation
29 slides from Suzlon Energy's earnings presentation, Nov 14, 2019
Slide 1: Suzlon Energy Limited Q2 FY 2020
Suzlon Energy Limited Q2 FY 2020 14 November 2019
Slide 2: Disclaimer
Disclaimer • This presentation and the accompanying slides (the “Presentation”), which have been prepared by Suzlon Energy Limited (the “Company”), have been prepared solely for information purposes and DOES not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 3: Milestones Achieved
Milestones Achieved Cumulative Market Largest fleet under Annual Market Share Share* maintenance* of (FY19) ~35% 12.5 GW in India ~39% Market leadership 2nd largest O&M Market share gains for maintained for over two Company in India Power 4th consecutive year decades Sector 3 Despite competitive mar
Slide 4: FY20 & Onwards: Volume Visibility in India
FY20 & Onwards: Volume Visibility in India Visibility for next two years – For India Wind Market ~4 GW ~3 GW 1.5 GW FY19 FY20e FY21e Challenges Resolution Evacuation approvals granted most of the auctioned capacity Delays in evacuation approvals PGCIL working on creation of evacuation infrastructure
Slide 5: Debt Resolution Plan
Debt Resolution Plan Debt Resolution Plan In Progress Focus areas: Steps Taken: Continues to work on resolution of Lenders* have entered Intercreditor Agreement unsustainable debt levels (ICA) under the Reserve Bank of India (Prudential Framework for resolution of stressed assets) Wholesome ap
Slide 6: Financial Performance Debt Overview Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 6
Slide 7: Q2 FY20 Financial Metrics
Q2 FY20 Financial Metrics (₹ Cr.) Q2 FY20 Q2 FY19 Particulars Remarks Unaudited Unaudited Net Volumes (MW) 27 126 Net Revenue 803 1,195 Primarily due to low volume Gross Profit 133 539 Primarily due to revenue mix and provisions Gross Margin 16.6% 45.1% Employee Expenses 209 213 Other Expenses (net)
Slide 8: H1 FY20 Financial Metrics
H1 FY20 Financial Metrics (₹ Cr.) H1 FY20 H1 FY19 Particulars Remarks Unaudited Unaudited Net Volumes (MW) 47 281 Net Revenue 1,636 2,467 Primarily due to low volume Gross Profit 570 1,028 Primarily due to revenue mix and provisions Gross Margin 34.8% 41.7% Employee Expenses 417 407 Other Expenses (
Slide 9: Stable Service Revenue Insulated From Business Cycles
Stable Service Revenue Insulated From Business Cycles Operations and Maintenance Revenues (₹ Cr.) ~15 GW of Assets under Management (AUM) ― 12+ GW in India; ~3 GW Overseas +9.9% 1,907 1,016 925 40 ― 2nd Largest O&M player in India Power Sector, Internal 118 59 +12.7% after NTPC Nearly 100% renew
Slide 10: Order Backlog
Order Backlog Particulars Capacity* Remarks Central Auctions 1,289 MW All orders backed by signed PPA’s State Auctions 164 MW Retail, Captive, PSU & IPP 25 MW Backed by advance, Not dependent on PPAs Wind Firm Order Book 1,478 MW Value of Order Book ₹ 7,951 Cr. SEFL and Service orders over and above
Slide 11: Financial Performance Debt Overview Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 11
Slide 12: Debt Profile
Debt Profile 30th Sep’19 30th Jun’19 US$ 569 M US$ 569 M SBLC Backed AERH Loans (₹ 4,024 Crs.) (₹ 3,917 Crs.) US$ 172 M US$ 172 M FCCB (₹ 1,254 Crs.) (₹ 1,219 Crs.) US$ 52 M US$ 55 M Other FX Term Debt (₹ 369 Crs.) (₹ 379 Crs.) Rupee Debt (Term and Working Capital) ₹ 6,913 Cr. ₹ 6,650 Cr. Gross Debt
Slide 13: Financial Performance Debt Overview Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 13
Slide 14: Strong Visibility On Growth For India Wind Market
Strong Visibility On Growth For India Wind Market Feed-in-Tariff + Captive / PSU / Retail Auction + Captive / PSU / Retail Commissioned till FY18 Estimated Commissioning by FY21 (GW) 5.5 ~4 GW 3.4 ~3.0 1.8 1.5 FY16 FY17 FY18 FY19 FY20e FY21e Source: MNRE Source: Internal Estimates Key Challenges: Ke
Slide 15: Financial Performance Debt Overview Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 15
Slide 16: Focus On Reducing LCOE
Focus On Reducing LCOE Higher energy yield Lower cost of energy Sustains Lower Tariffs >70% Increase in Energy Yield S97-120 S128 S111-90 S111-120 S111-140 S120 2.6-2.8 MW 16 Over 4,500 turbines of 2.1 MW platform across 17 countries
Slide 17: S120: Four Variants Launched
S120: Four Variants Launched S120 – 105 TT S120 – 140 HCT S120 – 140 HLT S120 – 120 STT (Jun ‘18) (Sep ‘18) (Dec ‘18) (Jan ‘19) Tubular Tower Hybrid Concrete Tower Hybrid Lattice Tower Smart Tubular Tower Reduces LCoE and improves ROI for customers >1,100 MW orders already booked 17 Continued focus
Slide 18: Product Developments
Product Developments S128: New Products SB 63 – Won SKOCH award for Corporate Excellence RLMM Listing completed All Testing & Measurement completed S128 – 140 HLT S128 – 105 TT Multiple Tower Options (Hybrid Lattice, Steel Tubular) 18 Enables us to reach untapped wind sites in challenging terr
Slide 19: Global In-House R&D Capabilities
Global In-House R&D Capabilities Suzlon Technology Locations: Hamburg - Development & Integration Hamburg - Certification Germany Rostock - Development & Integration Rostock - Design & Product Engineering - Innovation & Strategic Research Hengelo The Netherlands Hengelo - Blade Design and Integratio
Slide 20: Financial Performance Debt Overview Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 20
Slide 21: Suzlon Strengths In India Wind Market
Suzlon Strengths In India Wind Market Full Turnkey Solution Pan India Presence Provider Technology Leadership Strong Customer Relationship Best In Class Service 24+ Years Track Record Capabilities 21 End-to-end service provider with strong presence across value chain & customer segments
Slide 22: Accolades
Accolades • World’s 1st solar project quality certification for Suzlon’s 100 MW project • DNV GL confirms safety features and technical compliance • Testament of our commitment to high quality standards • Coimbatore Generator Unit wins CII Southern Region 13th Kaizen Competition • For uniform profil
Slide 23: 12.5 GW Wind Energy Installations In India
12.5 GW Wind Energy Installations In India Ranked No. 1 in Renewables Sector Largest fleet under Operation and Maintenance fold in India Ranked No. 2 in Power Sector (31st Mar’19) # of Turbines MW <= 1 MW 1,678 777 >1 MW < 2 MW 4,268 5,774 =>2 MW 2,834 5,950 Total 8,780 12,501 2.0 GW • 35% - All Ind
Slide 24: Suzlon's Global Presence
Suzlon’s Global Presence As on 31st Mar 2019 2 5 2 1 North 6 America 3 1 2,779 MW 4 Asia 3 5 13,462 MW South America Europe 806 MW 508 MW 4 South Australia Africa 764 MW 139 MW 6 24 Suzlon’s strong relationships across regions positions it well Map not to scale. All data, information, and map is pro
Slide 25: Financial Performance Debt Overview Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 25
Slide 26: Consolidated Income Statement
Consolidated Income Statement (₹ Cr.) Q2 FY20 Q1 FY20 Q2 FY19 FY19 Particulars Unaudited Unaudited Unaudited Audited Revenue from operations 803 833 1,195 4,978 Less: COGS 670 396 656 2,998 Gross Profit 133 437 539 1,980 Margin % 16.6% 52.5% 45.1% 39.8% Employee benefits expense 209 208 213 874 Othe
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ Cr.) Liabilities Sep-19 Mar-19 Assets Sep-19 Mar-19 Shareholders' Fund -9,568 -8,498 Non Current Assets Non controlling interest -38 -5 Property, plant and equipment 1,065 1,147 -9,606 -8503 Right-of-use assets 160 0 Capital work-in-progress 173 218 Investment property
Slide 28: Consolidated Net Working Capital
Consolidated Net Working Capital (₹ Cr.) 30-Sep-19 30-Jun-19 30-Sep-18 Inventories 2,357 2,775 3,151 Trade receivables 1,728 1,741 2,297 Loans & Advances and Others 1,676 1,684 1,889 Total (A) 5,761 6,200 7,336 Sundry Creditors 1,394 1,757 2,902 Advances from Customers 1,005 1,041 992 Provisions and
Slide 29: Thank You
CIN of Suzlon Energy Ltd - L40100GJ1995PLC025447 THANK YOU 29