RattanIndia Power Limited Q4 and FY24 Earnings Conference Call Summary
Overview
• Date of Call: June 4, 2024
• Key Participants: Executive Chairman Rajiv Rattan and senior management
• Focus: Q4 and FY24 earnings, operational updates, and future plans
Amravati Power Plant
• Capacity: 1350 MW, operational since 2015
• Financial Performance: Consistently generated over ₹1000 crore in EBITDA
• Challenges: Coal supply issues and financial restructuring
• Future Outlook: Confidence in continued demand for thermal power in India
Financial Highlights
• Peak Revenue and EBITDA Potential:
• Nearly 90% contracted Power Purchase Agreement (PPA)
• Current Plant Load Factor (PLF): 82-83%
• Potential expansion of merchant power operations by 300 MW
• Regulatory receivables: Over ₹2500 crore expected in 3-4 years
• Long-term Debt:
• Current debt: ₹522 crore
• Estimated interest savings: ₹500 crore
• Focus on repaying higher-interest junior debt after Kotak loan
Future Plans
• Capacity Expansions:
• Potential expansions at Amravati and Sinnar
• Interest in renewable energy projects
• Strategic land use for commercial opportunities (e.g., data centers)
Regulatory and Financial Management
• Receivables from Maharashtra Electricity Board: Approximately ₹2500 crore
• Improved payment efficiency and optimism about resolving past litigations
• Merchant power initiative generating 35-50 MW through coal auctions
Sinnar Power Plant
• Current Status: Under NCLT proceedings
• Impact of 20% haircut on valuation discussed
• Land associated with Sinnar remains with RattanIndia Power
Subsidiary and Debt Clarifications
• Mansa Power Limited: A subsidiary exploring commercial land uses
• Debt related to Sinnar plant transferred, leaving only Amravati's debt
Operational Efficiency and Future Outlook
• Expected regulatory receivables: ₹2,700 crore related to tariff litigation
• Increased PLF attributed to rising power demand
• Assurance of positive profit before tax moving forward
Additional Inquiries
• Concerns about finance costs and discrepancies in balance sheets addressed
• Future revenue generation from Poena Power and merchant sales discussed
• Commitment to quarterly investor calls and management capability for growth
Conclusion
• Rattan emphasized overcoming challenges and focusing on expansion post-debt resolution.