Business Wire IndiaOrient Green Power Company Limited (OGPL) a leading independent renewable energy-based power generation company in India has announced its results for the quarter and nine months ended December 31, 2017.
Delivers Turnaround in Financial Performance (All figures in Rs. Crore)
| TOTAL | |||
| 9M FY18 | 9M FY17 | % | |
| REVENUES | 389 | 385 | 1% |
| EBITDA | 287 | 271 | 6% |
| EBITDA% | 74% | 70% | +400 bps |
| EBIT | 180 | 147 | 23% |
| EBIT% | 46% | 38% | +800 bps |
| PBT | 3 | (52) | 106% |
| PBT% | 1% | (14%) | +1,500 bps |
Commenting on the performance, Mr. S. Venkatachalam, MD & CEO – OGPL, said: “FY18 has been a turnaround year for the business. Strong growth and a revival in profitability have been made possible by improved grid availability and significant reduction in Finance Costs. We have completed the sale of the loss making biomass business to a Group Company during the third quarter. This will reduce overall debt by over Rs. 300 crore along with over Rs. 50 crore of accumulated losses. The resultant OGPL will be a wind based Independent Power Producer with a portfolio of 425MW at attractive tariffs. Our focused efforts to reduce interest costs have received a significant boost with the transfer of biomass debts as well as refinancing of a large tranche of debt in the wind business. Lastly, a dramatic improvement in REC volumes in the months of November and December, 2017 has enabled us to monetize a large part of our inventory further enhancing our financial position. The combination of these factors has already resulted in strengthening of cash flows over the last two years even as the company has delivered an elevated and sustainable level of profitability. With a leaner business model, rationalization of debt and finance costs, continued impact of strategic initiatives supported by tailwinds in the form of improved macros and favorable demand for RECs, we are confident that we would be able to maintain the current momentum in the business and accelerate value creation for our stakeholders.” Performance Update
- Wind Business – Strong revenue traction & revival in profitability on the back of improving macros & timely onset of wind season
- Reduction in Finance costs and Debt Rationalization have resulted in stronger cash flow generation
- Revival in Renewable Energy Certificates (REC) trading has aided the turnaround
- Completed sale of 8 Biomass Assets to Subsidiary of SVL Ltd:
- Outlook remains favourable with macro tailwinds and momentum from strategic initiatives to help sustain performance
Source: Businesswire