Inox Wind Ltd. · NSE:INOXWIND
Inox Wind — Q2 FY2018 Earnings Presentation
27 slides from Inox Wind's earnings presentation, Nov 4, 2017
Slide 1: Earnings presentation filing letter to BSE and NSE
ITWL: NOI: 60: 2017 4 November, 2017 ‘The Secretary The Secretary BSE Limited (National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai 400 001 ‘Bandra (E), Mumbai 400 051 Scrip code: 539083 Scrip code: INOXWIND Fax No, 022-22723121
Slide 2: Inox Wind Limited Q2FY18 Investor Update
INOX WIND LIMITED Q2FY18 INVESTOR UPDATE
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Inox Wind Limited (“IWL” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future state of affairs, results of operation
Slide 4: Discussion Summary
DISCUSSION SUMMARY AUCTION MARKET PICKING PACE INOX WINS ROBUST MARKET SHARE IN SECI AUCTIONS INOX WIND – THE PATH AHEAD Q2 HIGHLIGHTS Q2 RESULT ANALYSIS H1 RESULT ANALYSIS SALES & COMMISSIONING WORKING CAPITAL ANALYSIS CASH FLOW AND DEBT ANALYSIS ORDER BOOK MANUFACTURING CAPAC
Slide 5: Auction Market Picking Pace
AUCTION MARKET PICKING PACE Central Auctions – SECI SECI 1 – Held in February, 17. Inox Wind won orders of 300MW translating into ~30% market share. SECI 2 – Held in October, 17. Inox wind won orders of 250MW translating into 25% market share Government looking to conduct wind power auctions
Slide 6: Inox Wins Robust Market Share in SECI Auctions
INOX WINS ROBUST MARKET SHARE IN SECI AUCTIONS SECI 1 Several IPPs and WTG manufacturers bid under the reverse auction tender. All other WTG manufacturers walked away at a price of around Rs 3.75. Inox was the only WTG manufacturer who was a successful bidder. Inox won 250 MW at Rs 3.46/unit.
Slide 7: Inox Wind – The Path Ahead
INOX WIND – THE PATH AHEAD • Auction regime is expected to increase the WTG market to over 6GW annually. The cost of wind power is Indian WTG market expected now lower than even conventional sources of power. to reach 6GW+ per annum vs. • Market expected to be as follows-: average historic levels of
Slide 8: Q2 Highlights
Q2 HIGHLIGHTS Down sold 250MW from our SECI-1 order win to some of the largest IPPs in the country. SECI conducted the 2nd wind auction of 1000MW. Besides other players in the fray, Inox was again the only WTG manufacturer to become successful in the auction winning 250MW at a quote of Rs 2.65/u
Slide 9: Q2 Result Analysis
Q2 RESULT ANALYSIS REVENUES EBITDA & EBITDA MARGIN (%) In Rs. Cr. 800 12.6% 101 80 Q2 FY17 -25.5% Q2 FY18 (20) Q2 FY17 Q2 FY18 REVENUES EBIDTA EBIDTA % PAT & PAT MARGIN (%) 7.1% 56 Q2FY17 Q2FY18 (46) -57.6% PAT PAT % Q2 results reflect the ongoing transition to the auction regime in the Indian Wind
Slide 10: H1 Result Analysis
H1 RESULT ANALYSIS REVENUES EBITDA & EBITDA MARGIN (%) In Rs. Cr. 1,235 147 11.9% 186 H1FY17 H1FY18 (34) H1 FY17 H1 FY18 -18.1% REVENUES EBIDTA EBIDTA % PAT & PAT MARGIN (%) 5.5% 68 H1FY17 H1FY18 -45.8% (85) PAT PAT % Revenues H1 results reflect the ongoing transition to the auction regime in the In
Slide 11: Sales & Commissioning
SALES & COMMISSIONING Q2 FY17 (MW) Q2 FY18 (MW) H1 FY17 (MW) H1 FY18 (MW) 366 168 146 286 138 122 194 162 40 86 20 0 0 0 0 2 Nacelles & Hubs Blades Towers Commissioning Nacelles & Hubs Blades Towers Commissioning The sales & commissioning data reflects the ongoing transition to the auction regime in
Slide 12: Working Capital Analysis
WORKING CAPITAL ANALYSIS Particulars (Rs Cr) Sept 2016 March 2017 June 2017 Sept 2017 Inventory 672.7 690.4 866.5 955.4 Receivables 2418.2 2382.3 1984.3 1658.3 Payables 887.7 968.7 628.8 506.0 Others 177.4 300.1 142.2 180.8 Net Working 2025.9 1803.9 2079.8 1926.9 Capital Net receivables reduced by R
Slide 13: Cash Flow and Debt Analysis
CASH FLOW AND DEBT ANALYSIS Net D/E ratio of 0.49x 12
Slide 14: Order Book
ORDER BOOK Current order book of the company stands at 550MW based on SECI-1 & SECI-2 auctions. We anticipate FY19 as the beginning of a phase of robust growth for the wind industry. We believe that Inox Wind, on the back of its cost-competitive advantage of being amongst the lowest cost produce
Slide 15: Manufacturing Capacity
MANUFACTURING CAPACITY CURRENT CAPACITY (MW) Una, Barwani, Rohika, Plant Location Himachal Madhya Total Gujarat Pradesh Pradesh Nacelles & Hubs 1,100 - - 1,100 Blades - 800 800 1,600 Towers - 300 300 600 Well positioned to take advantage of the growing market. Potential to debottleneck our nacel
Slide 16: Project Sites
PROJECT SITES Amongst the largest project site allottees in Gujarat, Rajasthan and Madhya Pradesh Rajasthan Expanded presence in Andhra Pradesh and Gujarat Madhya Pradesh Karnataka and Kerala Maharashtra Sufficient project site inventory for installation of an aggregate capacity of more than 5
Slide 17: Technology
TECHNOLOGY Moving towards bigger turbines on the same platform Inox Wind is in advanced stages of creating Higher Energy Lower Energy Higher Returns Yield Cost the next generation of Wind turbines Launched “Power Booster” technology upgrade leading to enhancing output across 20% the operating fl
Slide 18: O&M – Annuity Business
O&M – ANNUITY BUSINESS Inox Wind has an installed wind turbine base of 2.2GW in India with multi year O&M agreements In FY17, O&M revenues are ~3% of our revenues but we expect this revenue stream to pick up strongly in the coming years as the fleet size increases O&M revenues are noncyclical
Slide 19: Shareholding Structure
SHAREHOLDING STRUCTURE Share Price (Rs) 250 Market Data As on 03.11.17 (BSE) Market capitalization (Rs. Cr) 2815 200 Price (Rs.) 127 150 No. of shares outstanding (Cr) 22 100 Face Value (Rs.) 10.0 Jan-17 Mar-17 Jun-17 Oct-17 Apr-17 May-17 Nov-16 Jul-17 Aug-17 Nov-17 Feb-17 Sep-17 Dec-16 Source - BSE
Slide 20: Detailed Financials: Consolidated P&L Statement
DETAILED FINANCIALS CONSOLIDATED P&L STATEMENT 19
Slide 21: Detailed Financials: Consolidated Balance Sheet Statement
DETAILED FINANCIALS CONSOLIDATED BALANCE SHEET STATEMENT 20
Slide 22: Financial Summary
FINANCIAL SUMMARY In Rs. Cr Revenue from Operations EBIDTA (Inc OI) & EBIDTA Margin % PAT & PAT Margin % 19.0% 17.4% 17.6% 18.3% 14.2% 4,451 11.8% 8.4% 10.9% 10.3% 8.7% 783 461 3,415 CAGR – 34% CAGR – 33% 626 CAGR – 21% 2,709 472 296 303 1,567 1,059 201 185 150 132 FY13 FY14 FY15 FY16 FY17 FY13 FY14
Slide 23: Industry Section – Explaining the Auction Regime
INDUSTRY SECTION – EXPLAINING THE AUCTION REGIME 22
Slide 24: Market Outlook – Strong Expansion Ahead
MARKET OUTLOOK – STRONG EXPANSION AHEAD 32.2 GW • INDIA’S INSTALLED WIND CAPACITY MARCH 17* 60GW • TARGET WIND INSTALLATION BY 2022** • ANNUAL ADDITION OF WIND ENERGY PRODUCTION TO > 6 GW ANNUAL DOUBLE ON BACK OF-: ADDITION EXPECTED • CENTRAL AUCTIONS – ~4GW/YEAR IN NEXT FIVE YEARS • STATE AUCTIONS
Slide 25: How Auctions Benefit the Sector
HOW AUCTIONS BENEFIT THE SECTOR LOWER LOWER OTHERS REGULATORY RISK FINANCIAL RISK LOWER COST OF DEBT TO INDUSTRY TO MOVE LONG TERM (~25 YRS) BE AVAILABLE AWAY FROM “4TH PPA SIGNED UPFRONT QUARTER/MARCH” DEPENDENCE HIGHER DURATION LOANS AVAILABLE ASSURANCE OF GRID STABLE SET OF “LONG CONNECTIVITY TO
Slide 26: Why Is Inox Wind a Winner in the Auction Regime?
WHY IS INOX WIND A WINNER IN THE AUCTION REGIME? LARGER MARKET – The overall size of the market is expected to grow from FY2019 onwards LOWER CREDIT RISK – LARGER MARKET SHARE – Payments to come from PTC, Inox could gain market share instead of directly from due to its cost discoms competitiveness H
Slide 27: Thank You
FOR FURTHER QUERIES : THANK YOU Mr. Atul Soni Head - Investor Relations- Inox Wind Contact No: 0120 6149881 Email : [email protected] 26