KPI Green Energy Limited Earnings Conference Call Summary
Financial Performance
• Date of Call: June 1, 2023
• Fiscal Year End: March 31, 2023
• Revenue Growth:
• Year-on-year: 179% (from INR 231.51 crores to INR 647.03 crores)
• Quarterly: Increased from INR 179.66 crores to INR 184.41 crores
• Profit After Tax (PAT): Highest-ever at INR 109.6 crores
• EBITDA Growth: 91% year-on-year
• Profit Before Tax (PBT): Increased by 139%
Operational Highlights
• Commissioning: Hybrid Independent Power Producer (IPP) project
• Total Energized Capacity: Over 312 MW
• Growth Target: Conservative target of 50-60% in IPP and Captive Power Producer (CPP) segments
• Cumulative Capacity Goal: 1,000 MW by 2025
Q&A Session Insights
• Order Book Status:
• Current order book: 109 MW valued at approximately INR 430 crores
• Additional orders expected soon
• Annuity Income Potential: Significant estimates for both IPP and CPP segments
• Solar Policy Discussion: Benefits of hybrid projects highlighted, including better margins and higher Plant Load Factor (PLF)
• Financial Clarifications:
• Average cost of debt and payback periods discussed
• Cumulative power evacuation capacity target of 1 GW by 2025
Competitive Positioning
• Unique Selling Proposition (USP):
• Commitment to transparency and legality
• Distinct advantage in handling projects from 1 MW to 40 MW
• Funding Structure: Combination of client advances and internal resources
• Operational Costs: Minimal O&M cost of ₹5 lakhs per MW
Additional Discussions
• Debt Management: Current debt of INR 625 crores with a healthy debt-to-equity ratio of 2:1
• Land Ownership: 700 acres owned out of a total land bank of 1,374 acres
• Cash Flow: Free cash flow of INR 4.2 crores
• Future Growth: Optimism expressed for future milestones and potential expansion beyond Gujarat, including collaborations in the green hydrogen sector.