Results are out:
-
Portfolio has moved from 2,800 MW to 3,094 MW ( close to 300 MW added)
-
Out of 740 Cr raised in IPO – the company has utilized Rs. 330 crs from the proceeds of the IPO to deleverage its balance sheet.
-
A further reduction in the debt to the tune of Rs. 200 crs will take place once Nani Virani SPV which is now fully commissioned, is down sold, this will also unlock the equity invested in the project to the tune of ~ Rs. 100 crs which in turn will further be utilized to reduce debt.
this was the last the SPV in their portfolio and as per mgmt. commentary on the conf call – in talks with various buyers. with the cash that will be raised from this sale, the company will become a net debt free company.
-
IGESL has entered in to 3rd party O&M services by signing Definitive Investment Agreement for
acquiring a 51% stake in Ifox Windtechnik India Limited. ( have the rights to acquire the remaining 49% in due course. the stake was purchased using a mix of cash and equity over a period of time.{ solid foot print in south India and Maharashtra – tenure is up to 5 years. Out of 230 MW, 80 MW is full comprehensive O&M } ). -
This will add over 230 MW of O&M business to it’s portfolio.
-
CRISIL has upgraded the rating of Company from CRISIL BBB/Out look stable to CRISIL
BBB+/Outlook Positive. (link)
Strong Policy push by Government of India* 8 GW wind power projects every year till 2030:
- The Govt. of India recently has announced the policy to invite bids for 8 GW wind power projects every year from 2023 to 2030.
- The tenders will be spread across the key 8 windy states of the country.
- Under the new process, bids will be submitted under a single-stage, two-envelope, closed bid basis.
- To boost wind capacity evenly across India, every submission will be a “composite bid” comprising of state-specific sub-bids. The cumulative cap in any one state is 2 GW per annum
Conf call notes:
- Out of the 370 crores raised in IPO for Inox Green – 340 crores was used to deleverage the balance sheet, 31 cr was IPO expenses and the remaining 8 odd crores sits with the company.
- Only debt remaining (265 odd cr right now) on the inox green books is the 200 cr debt for Nani Virani SPV and the 100 crores equity invested in the SPV, this is fully commissioned.
- More acquisitions to come in the future, as promised pre-IPO.
- Total revenue includes trading activities (which was being on behalf of other entities till the limits were transferred back to the respective wind entities). From 1st April onwards no more trading activities will occur in this entity.
- Only looking at the pure O&M biz ( 44-45 cr revenue), the EBITDA margin was at 48% and the goal is to close to 50-55% over this FY. ( 2 crores from nani virani and 23 odd crores was from trading)
- 20 Cr which was recorded in other income – the loss in Wind II that was sold to adani had a loss on it which was reversed since it was downsold.
- depreciation on the books will be from the large infra they carry. this is going to be an asset light biz going forward, EBITDA will be equal to the cash profit. zero capex requirement. carry losses on the books as the sector for the past 5 years has been harsh, hence tax payout will be relatively zero.
- 8 or 10 deal for acquisitions are ongoing currently. plan is to buy at least 51% of these entities.
- Inox green has not given any guarantees to any other group companies.
What is the trading revenue:
Prior to IPO, all the infra belonged to inox wind and inox wind infra ltd. and they were fungible. when we carved out the O&M to Inox Green and other part to Resco, the limits were not transferred to these entities respectively by the IPO closed. Post the IPO, limits are being transferred to respective entities and what ever belonged to Inox Green- the respective LCs ( Letter of Credit) were being sold – this was being recorded as trading revenue. it is being sold at cost. there is 0 profit or loss. No more trading income will be shown April 1st onwards.
PS: Any mistakes above are purely mine.
| Subscribe To Our Free Newsletter |
