Torrent Power Limited has informed the Exchange about Investor Presentation
February 14, 2023
To,
Corporate Relationship Department BSE Limited, 14th Floor, P. J. Towers, Dalal Street, Fort, Mumbai-400001
To, Listing Department National Stock Exchange of India Limited “Exchange Plaza”, C – 1, Block G Bandra- Kurla Complex, Bandra (East), Mumbai-400051
SCRIP CODE: 532779
SCRIP SYMBOL: TORNTPOWER
Dear Sir / Madam,
Re: Investor Presentation
Investor Presentation on Unaudited Consolidated Financial Results for the quarter and Nine months ended December 31, 2022 is enclosed for your records.
Thanking you.
Yours faithfully,
For Torrent Power Limited
Rahul Shah Company Secretary & Compliance Officer Encl.: As above
Regd. Office: ''Samanvay'', 600, Tapovan, Ambawadi, Ahmedabad 380015, Gujarat, India Phone: 079-26628300 www.torrentpower.com
TORRENT POWER LIMITED Email: cs@torrentpower.com
CIN: L31200GJ2004PLC044068
Torrent Power Limited
Investor Presentation Q3 FY 2022-23
DISCLAIMER
from the views expressed herein.
This information may contain certain forward-looking statements/details in the current scenario, which is extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances, achievements or sequence of events may be materially Investors/shareholders/public are hence different cautioned not to place undue reliance on these statements/details, and are advised to conduct their own investigation and analysis of the information contained or referred to in this section before taking any action with regard to their own specific objectives. None of respective affiliates, advisors or the companies described herein or any of representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of the Materials or their contents or otherwise arising in connection with the Materials. Further, the discussion following herein reflects the perceptions on major issues as on date and the opinions expressed herein are subject to change without notice. The Company undertakes no obligation to publicly update or revise any of the information, opinions or forward-looking statements expressed in this section, consequent to new information, future events or otherwise.
their
PRESENTATION OUTLINE
TORRENT GROUP
TORRENT POWER LIMITED
OVERVIEW OF OPERATIONS Q3 FY23
INVESTMENT RATIONALE
FIVE YEAR TREND: KEY FINANCIAL & TECHNICAL STATISTICS
TORRENT GROUP
TORRENT PHARMACEUTICALS LIMITED • A generics pharmaceutical major with strong global footprint • Ranked in top 10 in Indian pharma market with leading position in niche
therapeutic areas
• Ranked No. 1 among Indian Pharma companies in Brazil, Germany & Philippines
TORRENT POWER LIMITED • Leading private sector Integrated Power Utility with presence across generation,
transmission and distribution
• Lowest distribution losses in the country • 24 X 7 power supply in licensed areas • Excellent operational track record with delightful customer service
TORRENT GAS PRIVATE LIMITED • Started in FY 18, City Gas Distribution (CGD) business now has 17 areas
operational which are spread across 7 sates
• 13 CGD areas won in the 9th & 10th Round of Bidding by PNGRB and 4 CGD areas
acquired from incumbent players
• Capex plan of ~ ₹9,000 crs over next 5 years • Crossed sales of 1 mn SCM per day
TORRENT GROUP
Turnover
$ 3 Bn
Enterprise Value $ 10.77 Bn
Market Cap $ 9.20 Bn
Employees
22,400+
Spreading smiles Illuminating Lives
Not just healthcare… Lifecare
Generating Trust. Distributing Opportunities.
Turnover: $ 1.12 Bn
Turnover: $ 1.88 Bn
Enterprise Value: $ 6.93 Bn
Enterprise Value: $ 3.84 Bn
Market Cap: $ 6.34 Bn
Market Cap: $ 2.86 Bn
Employees: 13,900+
Employees: 7,600+
Building pan-India state-of-art city gas distribution networks in 17 GAs across 7 States
Employees: 900+
TORRENT POWER LIMITED
Spreading smiles Illuminating Lives
Thermal
Solar
Wind
Transmission
Distribution
- 138 MW of
- 263 MW oper- ational capacity over 5 locations portfolio - 300 MW under- development
operational
- 2,730 MW state-of-art gas power based plants
based plants
- 2730 MW of gas
- 362 MW of coal
- 362 MW of coal based plant
based plant
- 430 MW of
- 804.5 MW oper-ational operational portfolio capacity over 10 locations pipeline - 115 MW project under- development
- 975 MW under
- L1 for 300 MW, LOA issued
- 355 kms 400 kV & 128 Kms of - 355 km 400 kV 220 KV, double double circuit circuit lines to lines to evacuate evacuate power from gas power from gas based plants based plants
- Licensed: - Licensed distribution Ahmedabad/ covering areas Gandhinagar, Ahmedabad / Surat, Dahej SEZ, Gandhinagar, Surat, & Dahej SIR & Dholera SEZ DD/DNH - Franchised - Franchised: distribution Bhiwandi, Agra & areas covering Bhiwandi & SMK Agra
ASSETS AT A GLANCE
TORRENT POWER LIMITED
GUJARAT
AMGEN (362 MW)
DGEN (1200 MW)
SUGEN & UNOSUGEN (1530 MW)
Wind (49.6 MW)
Wind (251.6 MW)
Wind (50.9 MW)
Wind (50.4 MW)
Wind (26 MW)
Wind (70 MW)
Solar (87 MW)
Solar (25 MW)
Solar (51 MW)
Sabarmati, Ahmedabad
Dahej, Bharuch
Kamrej, Surat
Jamnagar
Kutch
Rajkot
Bhavnagar
Surendranagar
Amreli and Rajkot
Kamrej, Surat
Surendranagar
Patan
Ahmedabad and Gandhinagar
Surat
Dahej SEZ
Dholera
MAHARASHTRA
Wind (126 MW)
Solar (50 MW)
Osmanabad
Solapur
Bhiwandi
Shil, Mumbra and Kalwa
05
03
01
07
06
08
02
04
Agra
UTTAR PRADESH
KARNATAKA
Wind (120 MW)
Gulbarga and Raichur, Karnataka
RAJASTHAN
Wind (24 MW)
Jaisalmer
MADHYA PRADESH
Wind (36 MW)
Mandsaur
DADRA & NAGAR HAVELI AND DAMAN & DIU
DADRA & NAGAR HAVELI AND DAMAN & DIU
Dadra & Nagar Haveli and Daman & Diu
TELANGANA
Solar (50 MW)
Nizamabad
Legends Power Generation
Gas
Wind
Coal
Solar
Distribution Licensee
Distribution Franchisee
TORRENT POWER LIMITED
PORTFOLIO OF ASSETS : THERMAL GENERATION
Particulars
Sugen
Capacity (MW)
1147.5 (3 x 382.5)
Unosugen
382.5 (1 x 382.5)
Dgen
1200 (3 x 400)
Amgen
362 (1 x 120, 2 x 121)
Plant Type
Gas-based CCPP
Gas-based CCPP
Gas-based CCPP
Coal Based
Location COD
Fuel
Near Surat, Gujarat August – 2009 Domestic Gas & Imported LNG
Near Surat, Gujarat April - 2013 Domestic Gas & Imported LNG
PPA
835 MW for Distribution areas of Ahmedabad / Gandhinagar & Surat, and 50 MW with MP
278 MW for Distribution areas of Ahmedabad / Gandhinagar & Surat
Near Bharuch, Gujarat Ahmedabad, Gujarat
November - 2014
Imported LNG
No tie up
1988 Domestic & Imported Coal Embedded generation for licensed areas of Ahmedabad / Gandhinagar
Others
Contracted Storage-cum-Regasification capacity of 1 MTPA with Petronet LNG, Dahej Terminal for 20 years from April 2017
TORRENT POWER LIMITED
PORTFOLIO OF ASSETS : RENEWABLE GENERATION
Particulars
Capacity (MW)
Solar 263
Location
Gujarat, Maharashtra & Telangana
COD Avg Tariff (₹/kWh)
FY 12 to FY17 7.46
Wind 804.50 Gujarat,Maharashtra,Karnataka, Rajasthan & Madhya Pradesh FY 12 to FY 19 3.96 • 352.50 MW with Company’s Licensed
PPA
• 138 MW with its own Licensed
Distribution business,
Distribution,
• 25 MW with GUVNL • 50 MW with SECI • 50 MW with Telangana State
• 120 MW with GESCOM, Karnataka • 96 MW with GUVNL Gujarat, 36 MW with MP and 24 MW with Rajasthan State discoms
DISCOM
FY 22 PLF
18%
• 126 MW with MSEDCL • 50 MW with PTC (thru SECI)
27%
New Projects: a. PPA signed with TPLD for 300 MW at tariff of ₹ 2.22/unit for 25 years. SCOD: Aug/Oct 2023. b. 115 MW SECI-V wind project (tariff ₹ 2.76/unit) is under implementation and expected to be commissioned by April 2023. c. Won 300 MW Wind Power Project in the Reverse Auction held by SECI and LOA was received. PPA to
be signed in due time. Tariff ₹ 2.94/unit.
TORRENT POWER LIMITED
PORTFOLIO OF ASSETS : LICENSED DISTRIBUTION
Particulars
Ahmedabad/ Gandhinagar
Surat
Dahej
Licensed Area
~ 356 sq. km.
~ 52 sq. km.
~ 17 sq. km.
Peak Demand(FY22)
License validity Accolades / Highlights
1,646 MW
Till 2025
689 MW
Till 2028
T&D loss 3.9% during FY 22, is amongst
93 MW
Till 2034 Second Licensee at Dahej
the lowest in the country;
SEZ;
Substantial
distribution
network
undergrounded;
Minimal Distribution losses;
enjoy
Consumers
power availability of 99.9%, which is among the highest in the country;
enviable
~99.9% power reliability;
New Areas: The company has made an application for Grant of parallel Distribution License in various areas of Maharashtra including (i) Thane & Palghar; (ii) Pune and (iii) Nagpur. Once the license is granted, the consumers will have an option to choose any one of the licensee for power supply.
TORRENT POWER LIMITED
PORTFOLIO OF ASSETS : LICENSED DISTRIBUTION
Particulars
Licensed Area
Peak Demand(FY22)
License validity Accolades / Highlights
Dholera SIR
~ 920 sq. km.
-
Till 2044
Major project on DMIC,
into developed manufacturing hub;
a
to be global
New state-of-art network & a large industrial base will ensure minimal T&D losses & low cost of supply; Planning & development of an efficient distribution network is under progress;
Investment of about ₹1,200 Crore is envisaged over next 10 years to cater to demand of about 425 MVA;
Dadra and Nagar Haveli and Daman and Diu Power Distribution
~603 sq. km.
1,150 MW
Till 2047 Area was formally taken over wef. 1st formed through a newly April company Dadra and Nagar Haveli and Power and Limited Distribution (DNHDD Distribution Company) with 51% stake owned by Torrent Power;
Diu Corporation Power
Daman
TORRENT POWER LIMITED
PORTFOLIO OF ASSETS : FRANCHISED DISTRIBUTION
Particulars
Bhiwandi
Agra
Shil, Mumbra, Kalwa (SMK)
Licensed Area
Peak Demand (FY22)
License validity
Accolades / Highlights
~ 721 sq. km.
~ 221 sq. km.
~65 sq. Km.
566 MVA
472 MVA
132 MVA
31st March 2030
in
Reduction
AT&C losses from 58.77% at the time of takeover to 12.10% in FY 22.
Reliable power supply & customer
improved services
25th Jan 2027 Country's first unique PPP distribution franchisee agreement with MSEDCL, now adopted as a standard distribution for model reforms in the country
Reduction in AT&C losses the time of
from 58% at takeover to 11.64% in FY 22.
Reliable power
supply &
improved customer services
29th Feb 2040 SMK operations taken over w.e.f 1st Mar 20 competitive a under bidding process; ~₹300 Crs of in
capex estimated the franchised area over the of agreement which Crs expected to be invested in first 5 years;
~₹150
term,
Reported AT&C losses of 47% in FY 17 estimated to come down to 12% over 15 years
OVERVIEW OF OPERATIONS – Q3 FY 2022-23
Consolidated Financial Statement (₹ in Cr.)
Q3 22-23 Q3 21-22 Growth % YTD 22-23 YTD 21-22 Growth % FY 21-22
Revenue from Operations
Power Purchase Cost
6,443
3,776
Material Cost & Change in Inventory
767
3,767
2,211
223
Contribution
Other Income
Gen. & Admin Exp.
PBDIT
Finance Cost
Depreciation & amortization Profit Before Exceptional Items & Tax Exceptional Items
Profit Before Tax
Tax Expenses
Profit After Tax
OCI / (Exp.) – net of tax
TCI
71%
19,656
10,514
87%
14,257
12,958
6,279
1,709
4,990
286
1,322
3,954
629
952
391
3,844
138
1,244
2,738
477
994
8,520
557
30%
5,180
44%
235
1,589
3,826
628
1,334
92%
2,373
1,267
87%
1,864
92%
88%
--
2,373
692
1,681
2
88%
1,683
--
1,267
87%
321
946
(1)
945
78%
78%
1300
564
105
459
2
461
1,900
1,333
43%
84
456
66
399
1,527
1,000
53%
228
322
977
--
977
283
694
0
695
157
334
509
--
509
140
369
(0)
369
OVERVIEW OF OPERATIONS – Q3 FY23
The TCI for Q3 FY23 was higher by Rs. 326 Cr compared to Q3 FY22. The major reasons for improvement in the TCI for the quarter on y-o-y basis are:
Increase in contribution from existing licensed distribution businesses due to improved performance and contribution from the operations of Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD) which has been taken over from 1st April, 2022;
Increase in contribution from franchised distribution business due to reduction in T&D losses on account of continuous and sustained focus on Loss reduction activities;
Net gain from trading of LNG; Increase in Finance Cost; Increase in tax expenses.
Dividend: The Board at its meeting of even date, has approved interim dividend of ₹ 22 per equity share (including ₹ 13 per equity share as a special dividend).
OVERVIEW OF OPERATIONS – Q3 FY23
Q3 Thermal PLF(%)/ Net Generation(MUs)
75.9%
75.4%
552 MUs
554 MUs
30.7%
757 MUs
10.7%
264 MUs
20.9%
172 MUs
4.4%
36 MUs
0.8% 21 MUS
0.0%
16.2%
950 MUs
5.1%
300 MUs
23.2%
1504 MUs
13.4%
852 MUs
SUGEN 1147.5 MW
UNOSUGEN 382.5 MW
DGEN 1200 MW
GAS PLANTS 2730 MW
AMGEN 362 MW
THERMAL 3092 MW
Q3 21-22
Q3 22-23
OVERVIEW OF OPERATIONS – Q3 FY23
Q3 Renewable PLF (%)/ MUs Dispatched
20.4%
273 MUs
16.0%
270 MUs
19.0%
16.6%
51 MUs
111 MUs
264 MUs
WIND 804.5 MW
SOLAR 213 MW
Q3 21-22
Q3 22-23
OVERVIEW OF OPERATIONS –Q3 FY23
Q3 USO/Purchase (MUs)
2,439
1,818
1,841
837
870
918
996
184
171
408
407
182
183
Ahmedabad
Surat
Dahej
DDDNH
Bhiwandi
Agra
SMK
Q3 22
Q3 23
T&D Loss (%)
3.36%
3.24%
3.32%
3.28%
1.99%
T&D Loss(%)
40.92%
34.01%
0.45%
0.54%
12.27%
10.61%
11.49%
9.43%
Ahmedabad
Surat
Dahej
DDDNH
Bhiwandi
Agra
SMK
9M_FY22
9M_FY23
9M_FY22
9M_FY23
INVESTMENT RATIONALE
• State of the art gas
based plants
• Direct import of LNG
at efficient cost
• Low environmental footprint & large quantum of renew- ables in power system creates a favourable conditions for sustain-able operations of unutilised capacities
• Need for a robust grid to support increase in renewables capacity presents attractive opportunities for private transmission players
• Robust regulations & limited project risks
• Company’s right to win : strong project development & financial capabilities
• Huge growth potential in renewables; returns above COE for selected projects
• Company’s capability to win coming from strong project development, O&M & financial capabilities
• Opportunity of
flexible generation to sell pooled RTC power [Renewable + Gas] at competitive cost on a long term basis
Thermal Generation
Renewable Generation
Transmission
• Opportunities for private sector considering the endemic inefficiencies of the public distribution sector
• Successful
privatization of Union Territory utilities will spur the States to follow the path
• Torrent has a strong distribution platform to take advantage of upcoming Franchisee & privatisation opportunities in distribution sector
Distribution
INVESTMENT RATIONALE
Regulated businesses ensuring stable returns
Excellent operational records
Promising growth opportunities
Unmatched distribution model
Strong project management skills
World class generation assets
Value Creation
Rational allocation of capital
5 YEAR TREND - FINANCIAL STATISTICS
Revenues from Operations (₹ Crore)
EBIDTA (₹ Crore)/EBIDTA Margin (%)
13151
13641
12173
14257
11512
3734
3826
3607
30%
27%
27%
3381 29%
3389
26%
2017-18 2018-19 2019-20 2020-21 2022-22
2017-18 2018-19 2019-20 2020-21 2021-22
TCI* (₹ Crore)
1291
1145
956
893
Net Worth (₹ Crore) 10724
10569
10289
9722
454
9235
2017-18 2018-19 2019-20 2020-21 2021-22
2017-18 2018-19 2019-20 2020-21 2021-22
*Without Minority Interest
Note: From 1st April 2018, the Company has adopted Ind AS 115, Revenue from Contracts with Customers , hence the numbers of previous periods are not comparable. Net worth includes DTL. TCI of FY22 is lower due to impairment provision made in the year.
5 YEAR TREND - FINANCIAL STATISTICS
2.49
Net Debt / EBITDA 2.61
2.18
1.98
2.24
Net Debt Equity Ratio
0.89
0.80
0.80
0.80
0.64
17-18
18-19
19-20
20-21
21-22
17-18
18-19
19-20
20-21
21-22
Return on Capital Employed
Return on Networth
9.62%
9.32%
8.23%
10.01% 10.31%
12.62%
9.54%
12.42%
11.05%
14.22%
17-18
18-19
19-20
20-21
21-22
17-18
18-19
19-20
20-21
21-22
Note: From 1st April 2018, the Company has adopted Ind AS 115, Revenue from Contracts with Customers, hence the numbers in previous periods are not comparable.
5 YEAR TREND - OPERATIONAL STATISTICS
THERMAL PLF (%)
71.4%
65.3%
33.3%
0.0% 0.0%
17-18
87.8%
62.3%
33.4%
0.0% 0.0%
18-19
72.9%
60.1%
57.8%
59.9%
59.9%
44.3%
40.7%
6.5%
38.4% 9.8%
19-20
20-21
76.9%
44.3%
41.1%
30.6% 0.1%
21-22
T&D loss (%) Licensed Distribution
6.31%
5.61%
3.59%
3.43%
4.98%
3.43%
6.03%
4.06%
4.17%
3.38%
0.40%
0.35%
0.31%
0.49%
0.45%
17-18
18-19
19-20
20-21
21-22
AMGEN
SUGEN
UNOSUGEN
DGEN
THERMAL
A'bad
Surat
Dahej
RENEWABLE PLF (%)
T&D loss (%) Franchised Distribution
27.3%
30.1%
29.0%
25.0%
27.1%
17.3%
17.6%
17.1%
17.6%
16.8%
24.69%
21.69%
19.16%
17.58%
44.89%
40.48%
14.18%
12.51%
16.22%
12.10%
15.13%
11.93%
13.50%
11.64%
21-22
17-18
18-19
19-20
20-21
21-22
16-17
17-18
18-19
19-20
20-21
SOLAR
WIND
Bhiwandi
Agra
SMK
Note: (i) SMK takeover from 1st March, 2020. (ii) For fair comparison, PLF of Solar/ Wind projects is excluding 75 MW Solar and 156 MW Wind projects acquired in the month of Feb / March 2022.
THANK YOU
Contact details: Rishi Shah Torrent Power Limited “Samanvay”, 600 Tapovan, Ambawadi, Ahmedabad 380015 Ph. No. (079) 26628473 Email: IR@torrentpower.com