Investor Presentation
Investor Presentation
Investor Presentation
INVESTOR PRESENTATION
SOLAR
Disclaimer
This presentation and the accompanying slides (the “Presentation”) have been prepared by Sterling and Wilson Solar Limited (the “Company”) solely for information purposes and do not constitute an offer to sell or, recommendation or solicitation of an offer to
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form a part of any offer to sell or solicitation of an offer to purchase or subscribe for securities in the United States or elsewhere in which such offer, solicitation or sale would be unlawful prior to registration under the Securities Act or the securities laws of any such
jurisdiction. No securities of the Company may be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act. The Company does not intend to make any public offering of securities in
the United States. By accessing this Presentation, each investor is deemed to represent that it is and any customer it represents are either (a) qualified institutional buyers (within the meaning of Rule 144A under the Securities Act) or (b) outside the U.S. (within
the meaning of Regulation S under the Securities Act), and is a sophisticated investor who possesses sufficient investment expertise to understand the risks involved in the offering.
This Presentation is not intended to be a prospectus (as defined under the Companies Act, 2013, as amended) or draft offer document / an offer document under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018, as amended.
The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments, which may occur after the date of the Presentation. The
information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date
hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither the Company nor its affiliates, advisors or representatives are under an obligation to update, revise or affirm. You acknowledge
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suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this Presentation and neither the Company, its affiliated companies nor their
respective employees or agents accepts any liability for any error, omission or misstatement, negligent or otherwise, in this Presentation and any liability in respect of the Presentation or any inaccuracy therein or omission therefrom which might otherwise arise is
hereby expressly disclaimed.
Certain statements contained in this Presentation may be statements of the Company’s beliefs, plans and expectations about the future and other forward looking statements that are based on management’s current expectations or beliefs as well as a number of
assumptions about the Company’s operations and factors beyond the Company’s control or third party sources and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant
forward looking statements. Forward looking statements contained in this Presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. There is no obligation to update or revise any
forward looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward looking statements, which speak only as of the date of this Presentation.
If the Company should at any time commence an offering of securities, any decision to invest in any such offer to subscribe for or acquire securities of the Company must be based wholly on the information contained in the red herring prospectus and the
prospectus and any international offering memorandum (including the risk factors mentioned therein) issued or to be issued by the Company in connection with any such offer and not on the contents herein. Information contained in this presentation is qualified in
its entirety by reference to an offering document for any potential transaction, if it proceeds. Any potential transaction could be made available to the recipient of this document in accordance with the applicable laws and regulations, including the distribution of any
required documents for such potential transaction and such documents will supersede all prior information provided to the recipient, herein or otherwise. No representation or warranty express or implied) is made as to, and no reliance should be placed on, the
accuracy, completeness or correctness of any information, including any projections, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein and, accordingly, none
of the Company, its directors, officers or employees or its affiliates, its advisors or representatives, including the Global Co-ordinators and Booking Running Lead Managers or Book Running Lead Managers, or any such person's officers or employees accepts any
liability (in negligence or otherwise) whatsoever arising directly or indirectly from the use of this presentation The contents of this Presentation have not been independently verified and this Presentation has been prepared by the Company solely for informational
purposes.
Neither the delivery of this Presentation nor any further discussions with any of the recipients shall, under any circumstance, create any implication that there has been no change in the affairs of the Company. This Presentation is a summary only and it is not the
intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the financial position or prospects of the Company.
Certain data contained in this Presentation was obtained from various external data sources, and none of the Company nor any of its respective affiliates, advisers or representatives has verified this data with independent sources. Accordingly, the Company and
its respective affiliates, advisers and representatives make no representation as to the fairness, accuracy, correctness, authenticity or completeness of that data, and this data involves risks and uncertainties and is subject to change based on various factors.
The information contained in this Presentation is not to be taken as any recommendation made by the Company or any other person to enter into any agreement with regard to any investment. You will be solely responsible for your own assessment of the market
and the market position of the Company and you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company.
By attending or viewing all or part of this presentation, you (A) acknowledge and agree to be bound by the limitations and restrictions described herein, (B) agree to maintain confidentiality regarding the information disclosed in this presentation, and (C) agree to
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located or other applicable laws. Any failure to comply with these restrictions may constitute a violation of applicable securities laws.
The Company is proposing, subject to applicable statutory or regulatory requirements, receipt of requisite approvals, market conditions and other considerations to make an initial public offering of its equity shares and has filed a red herring prospectus dated July
29, 2019 (“RHP”) with Registrar of Companies, Maharashtra at Mumbai (“RoC”). The RHP is available on the website of the SEBI at www.sebi.gov.in, BSE Limited at www.bseindia.com, National Stock Exchange of India Limited at www.nseindia.com and the
websites of websites of the Global Co-ordinators and Book Running Lead Managers at www.icicisecurities.com, www.axiscapital.co.in, www.credit-suisse.com, www.db.com/India, www.iiflcap.com and www.sbicaps.com; Book Running Lead Managers at
www.indusind.com and www.yesinvest.in. Any potential investors should note that investment in equity shares involves a high degree of risk and for details refer to the “Risk Factors” on page 28 of the RHP. Potential investors should not rely on the DRHP filed
with the SEBI for making any investment decision.
Promoter of the Company With the Sterling and Wilson With the Sterling and Wilson With the Sterling and Wislon
group for more than 2 group for more than 8 years group for more than 7 years
decades
Holds 33.3% stake in the
Company 23+ years of experience in Over 8 years experience in
22+ years of experience in finance and audit related business development and
EPC sector matters sales
Part of Sterling and Wilson
group for almost 25 years
Prior experience in Godrej & Prior experience in Aricent
Boyce, Lovelock and Lewes Technologies and Asea Brown
Boveri
Initial Public Offering ("IPO") of equity shares of face value INR 1 each of the Company
Will only be offered and sold (a) in the United States in reliance on Regulation S under the Securities Act or (b) in the United States
Offering
only to QIBs in compliance with Rule 144A under the Securities Act . No securities may be offered, sold or delivered in the United
Structure
States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act
and applicable state or local securities law.
IPO of equity shares of face value of INR 1 each of the Company aggregating up to INR 31,250.00 million, comprising of an offer for
sale of equity shares by Shapoorji Pallonji and Company Private Limited aggregating up to INR 20,833.33 million and by Khurshed
Yazdi Daruvala aggregating up to INR 10,416.67 million (together “Promoter Selling Shareholders”)
Offering
Offer to QIBs – Not less than INR 23,437.50 million
Size
Of which Anchor Investor Portion - Up to INR 14,062.50 million
Offer to Non – Institutional investors - Up to INR 4,687.50 million
Offer to Retail investors - Up to INR 3,125.00 million
Achieve the benefits of listing the Equity Shares on Stock Exchanges which the Company expects will enhance its visibility, brand
image apart from providing liquidity to the shareholder and public market for the equity shares in India
To carry out the sale of Offered Shares by the Promoter Selling Shareholders
Objects of
Promoter Selling Shareholders shall utilize a portion of the net offer proceeds, towards funding full repayment of the loans due to
the Offer
the Company and Sterling and Wilson International Solar FZCO from Sterling and Wilson Private Limited (“SWPL”) and Sterling and
Wilson International FZE (a subsidiary of SWPL) respectively within 90 days from the date of listing of the equity shares
Company will not directly receive any proceeds from the offer
Price Band
INR 775 to INR 780 per equity share
&
Bid Lot being 19 equity shares and in multiples of 19 Equity Shares
Bid Lot
Listing
Venue
National Stock Exchange of India Limited BSE Limited
GCBRLMs
Deutsche Bank
BRLMs
Operational Excellence
Abu Dhabi End-to-end “Concept to 26
1,177 MWp
Market Leader
(FY19) (FY16-19)
Financial Performance
Leading Solar EPC – 2018 Excellence in Renewable Energy
RE International Excellence - Project Execution Award
Indian Companies - 2018 CBIP 2017
INR 77,398mn 72% 62%
PAT CAGR RoE
Order Book + LOI(2)
(FY16-19) (FY19)(3)
Strong Parentage
(1) IHS Markit ranking 2018; based on annual installations of utility scale PV systems >5MWp
(2) Order book, defined as the value of solar power projects for which the Company has entered into definitive EPC contracts minus the revenue already recognized from those projects, is INR 38,316mn as of March 31, 2019.
Letter of Intents (LOIs), defined as solar power projects for which the Company has won bids but has not executed definitive EPC contracts, is INR 39,082mn as of March 31, 2019.
(3) ROE calculated as consolidated restated net profits divided by networth at the end of period; NW is Equity share capital plus other equity (including legal reserve, retained earnings and effective portion of cash flow hedge).
(4) CRISIL Ltd. | (5) Based on percentage share of annual installations of all utility-scale PV systems greater than 5 MWp in 2018 | (6) Total O&M Capacity as of 31 March 2019 | (*All numbers rounded off to the nearest whole
no.) Strictly Private and Confidential 7
Our journey towards becoming the Largest global solar EPC
player(1) in a rapidly growing solar industry
(1) IHS Markit 2018. Based on annual installations of utility-scale photovoltaic systems of more than 5MWp
Strictly Private and Confidential 8
Wide presence and operational experience across geographies
26
Countries(1)
6,870 MWp
capacity globally(2)
Market share (% of installations in 2018)(2) Revenue from Operations Order book + LOI break-up
break-up (FY19) (As of Mar 2019)(3)
4.6% India 12%
India 30% Europe 22%
2.2%
2.1% Africa 12%
1.9% MENA 20% SEA 8%
1.9% International US &
70% LATAM
1.4% 26%
1.2% Total
(1) Including the countries where the Company has a presence or has executed or is executing a project
(2) IHS Markit 2018; Share of annual installations of all utility-scale PV systems >5 MWp (% of MW) for the companies with the largest market shares in 2018. INR 77,398mn
(3) Cumulative as of March 31, 2019; Includes commissioned capacity, under-construction and confirmed contracted capacity. | (*All numbers rounded off to the nearest whole no.)
Strictly Private and Confidential 9
INVESTMENT HIGHLIGHTS
5 Strong parentage and the ability to leverage the global “SP” brand
Solar tariffs have seen a sharp decline globally and have fallen significantly below those of Solar has increasingly competitive in terms of LCOE
traditional energy sources like coal (cost of producing each unit of electricity over the lifetime)
Solar auction prices (US Cents/KWh) Tariff trend in India (Rs /KWh)(1) 200 Indicative ranges for LCOE in India (US$/KWh)
150
17
16 100
6.7
50
11 5.6 4.8 0
10 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
5.2
7 7 4.6 Solar PV Coal Gas
6
4.1 300
4 3.8 Indicative ranges for LCOE in USA (US$/KWh)
3
3.0 200
2.7
India MENA S Africa 2014 2015 2016 2017 2018 100
0
2014 2016 2018 Solar Coal 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Solar PV Coal Gas
Global solar utility-scale system costs continue to decline, primarily driven by falling module prices
Price per Watt ($/W)
9% 10% 11% 13% 14% 14%
18% 21%
1.82 23%
27% 29% 29%
15%
1.51 16%
6% 18%
7% 22%
1.14 5% 23% 24%
0.89 5%
5% 5%
0.77 0.70 52% 46% 43%
34% 29% 29%
2012 2014 2016 2018 2020 2022 2012 2014 2016 2018 2020 2022
Average global total utility scale system PV costs Module Inverter Balance of plant EPC Other
Rapid uptick in the share of solar in the global power generation capacity, annual
additions, and global installed power capacity base Key advantages and growth drivers of solar
Solar share
in installed 2% 3% 6% 10% Already among the lowest cost power sources even
power without government incentives
capacity
base (%) 38.4%
25.3%
9.8%
14.3% Greater efficiency in installation and commissioning
process
Market-share is shifting towards larger solar EPC players with existing capabilities and sound financial strength
2014 2018
Strong track record of on-time project completion and high Deep understanding of the local markets in which
plant performance Company operates
Relationships built over time with customers, suppliers, Limiting number of players that meet qualification
lenders and others requirements because of increasing size and complexity
(1) Source: IHS Markit; Market share of top 5 global players ex-China of 2018
Strictly Private and Confidential 14
Energy storage market growth expected to drive solar demand in
the medium-to-long term
960
720
600
420
320 260 255 245 230 220 209
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
27.8
19.9
12.9
7.6
2.0 3.7
1.0
Helps to overcome the inherent limitation of solar PV generation with stored energy now being able to be utilized when solar
power is not being generated in off-peak times
Higher mix towards solar + storage (from pure solar) also helps in improving realizations for EPC players
5 Strong parentage and the ability to leverage the global “SP” brand
Utility scale solar projects (incl Rooftop solar projects Solar + energy storage O&M service
turnkey & BOS)
Key financial metrics (EPC business) Key financial metrics (O&M business)
Design and Engineering Procurement Inspection & Audit Construction Field quality
O&M service
monitoring
Dedicated in-house Selection of vendors 3-stage audit process Final inspection and Centralized Long Term O&M
design & engineering after thorough due including initial factory audit, testing under the monitoring with services for both own
team of 154 people diligence production process audit supervision of project efficient customers, and third-
and monitoring at vendor’s manager to ensure new tracking of party projects
India based cost Well-defined quality facility and pre-shipment plant is safe and meets under-
effective structure management inspection design objectives construction
procedures
plants
Hub-and-Spoke business model driving global expansion through a cost effective India base…
Design & engineering and Regional presence across Significant cost benefits &
Procurement team based in India 26 countries timely execution
Ability to mobilize & deploy resources on multiple projects globally through India base
Strong relationship with suppliers due to global execution track record helps sourcing of raw materials at competitive prices
177
5,558MWp Total O&M contracts(6) Projects commissioned
6,870 MWp
Third Party O&M Total capacity till date(5)
28.3% contracts(6) 28
Projects under-construction
(1) Liquidating Damages related to Performance ratios in FY18 and FY19 in EPC contracts (4) Percentage of total commissioned capacity from customers with whom more than one project executed for
(2) Bid Conversion rate under EPC contracts for FY19. FY19
(3) For FY19; Refers to Lost Time Injury Frequency Rate which is the number of lost time injuries occurring in a (5) Cumulative as of March 31, 2019; Includes 5,271MWp of commissioned capacity and 1,599MWp of under-
workplace per 1 million hours worked construction and confirmed contracted capacity.
(6) Total O&M contracts as on 31 March 2019
* Numbers rounded off to nearest whole number, percentages to one decimal place
Strictly Private and Confidential 19
A strong execution track record and recognition from leading
institutions (2/2)
Global awards & recognition
Leading EPC – Excellence in Renewable Energy Project of the Year Award 2017
Solar – Ground Based, 2018 Project Execution Award 2017
Solar O&M contractor of the year -Roof Immense contribution to the Solar Today Utility Scale Solar EPC
top scale, 2017 Infrastructure sector, 2016 Contractor 2016 Award
Intersolar AWARD 2015 BMGI Energize Indian Power Sector Most promising firm and outstanding contribution
(11 MWp Solar Project in Award in 2014 - Excellence in Solar towards the development of SE, 2014
Maharashtra under JNNSM PH II) EPC and Innovation in Solar Energy
5 Strong parentage and the ability to leverage the global “SP” brand
Strong R&D capabilities led by in-house designing and engineering team providing customized unique solutions in various projects
Challenges Solutions
‽ How to fit maximum capacity in a given land area Unique installation structure of placing PV modules in east-west
with minimum bid criteria of 350MWp orientation instead of standard south facing orientation to
maximize electricity generation
‽ Maximizing electricity generation
Unique 8 high fixed structure design to optimize generation
‽ To automate and reduce O&M cost
Abu Dhabi
1,412 robots to create an automated plant to reduce water
1,177 MWp
consumption and operating expenses
‽ Project site on a riverbed, hence the fear of flooding Three leg module mounting structure to make the project site
‽ Site situated in a high-speed wind zone flood resistant
‽ Problem of soft & mushy soil Combination of concrete ballast foundation & pilling foundation
used
Philippines Outdoor inverter stations on RCC beams to tackle soft, mushy soil
22.32 MWp Able to mobilize engineers & project managers from India quickly
to meet deadlines
Bid for 1,177MWp against Installed 200 MWp Built with over 5mn One of Lowest
within a short timeline accident free safe tariff globally at
Impact minimum requirement of
of one month man hours the time for any
350MWP PV plant(1)
5 Strong parentage and the ability to leverage the global “SP” brand
Developers
Lenders to
lenders - both state-owned and private
Lenders rely on SW’s credibility as an EPC
India Overall
player to finance projects
High bid conversion rate(1)
Owners’ Engineers
Consultants /
Strong relationship with world renowned
consultants and engineers engaged by
developers
Their certification provides additional assurance
to customers
Suppliers
and global suppliers of modules and other raw
Widening customer base with new class of materials; critical to supply chain success
developers like Private Equities Funds Helps Company get significant cost benefits in
High % of repeat customers(2) sourcing materials
Manages the complete supply chain thereby
reducing the number of service providers 83% 64% Large scale public sector off-takers – Adds
Takers
customer has to engage with and optimize In India Outside India high credibility to international track record
Off-
solution Helps in timely execution
5 Strong parentage and the ability to leverage the global “SP” brand
SP group’s experience translated into multiple advantages for S&W initially Emerged as a credible solar EPC player globally
EPC 150+ Assistance in getting subcontractors, connecting with government S&W gets the benefit of local EPC knowledge
Knowledge years of
experience authorities, liaising and sometimes, submitting bids due to the presence of the SP group
The Company is capable of rendering EPC knowledge and support for geographies not covered by SP group
5 Strong parentage and the ability to leverage the global “SP” brand
5 Strong parentage and the ability to leverage the global “SP” brand
9,850
Gross
7,527
3,323 2,132
…with low working capital requirement
12.1% 12.0%
13.0% 11.0%
*Gross Margin does not include impact of forex related to project and operations
Short duration contracts with an average life of one year
8,516
EBITDA#
4,505
1,254 314 6.5% 7.6%
4.6% 1.9% Diversification of revenue base with international operations
increasing from 46% of turnover in FY16 to 70% in FY19
10.1%
operating leverage with increasing scale and operational
capital
2,335 2.8%
1,660
– efficiency from low cost India base
(7,490)
(2,399)
(8.8%) (10.9%) PAT margins have improved due to increase in international
(20,000) (20.0%)
Working Capital % of Operating Revenue operations and lower tax rate in geographies such as UAE
Note: Information for FY16 and FY17 pertains to the solar EPC business transferred into the Company subsequently
Gross Margin calculated as Revenue from Operations less COGS and Direct Project costs; all numbers are rounded off to the nearest whole number, percentages to one decimal place
Strictly Private and Confidential 31
% of international revenues of the operating revenue NW calculated as Equity share capital plus other equity (including legal reserve, retained earnings and effective portion of cash flow hedge)
Significant geographic diversification over the years
(1) Order book, defined as the value of solar power projects for which the Company has entered into definitive EPC contracts minus the revenue already recognized from those projects, is INR 38,316mn as of March 31, 2019.
Letter of Intents (LOIs), defined as solar power projects for which the Company has won bids but has not executed definitive EPC contracts, is INR 39,082mn as of March 31, 2019.
* all numbers are rounded off to the nearest whole number, percentages to one decimal place
Strictly Private and Confidential 32
STRATEGY
Maintain market leadership Grow our customer base and Expand product offerings -
Increase operational &
through strategic expansion of maintain relationships with O&M, rooftop solar EPC and
financial efficiency
overseas operations other key stakeholders solar storage solutions
1 One of the only global pure-play solar EPC players with a significant presence and operational experience across geographies
2 A bankable player with strong relationships with customers and other key stakeholders
3 Strong in-house team of 154 design and engineering people providing customized solutions
4 Leveraging the low-cost India base for global execution providing cost competitive solutions
5 Quick decision making & well-defined internal processes leading to timely execution
6 Strong track record of executing complex & large scale EPC projects leading to high customer retention and repeat business
FYE March 31 (INR mn) FY16 FY17 FY18 FY19 Key Highlights
Revenue from operations 27,394 16,403 68,717 82,404 Decline in FY17 revenue due to decrease in EPC revenue from
international projects
Growth % (40.1%) 318.9% 19.9%
– 90MWp project in South Africa and 51MWp project in Philippines
Direct Expenses 24,071 14,271 61,190 72,554 substantially completed in FY16
Gross Profit 3,323 2,132 7,527 9,850 – However, no EPC revenue recognized from any new international
projects in FY17
Gross margin % 12.1% 13.0% 11.0% 12.0%
In FY18, international EPC revenue recognized from mainly 4 projects –
Overheads 1,435 1,583 2,150 3,429 1,177MW Abu Dhabi and 175MWp Morocco projects
Other income 70 98 127 2,095 – Increase in finance cost in FY18 mainly due to buyer’s credit taken
for imported modules for Abu Dhabi project and projects in India
EBITDA 1,959 647 5,505 8,516
– Effective tax rate declined in FY18 due to significant increase in
EBITDA margin % 7.1% 3.9% 8.0% 10.3% international revenue and lower tax rate in international geographies
such as the UAE, which is the Company’s global headquarters
Depn. and Amort. 9 16 32 78
FY19; revenue from operations increased by 19.9% y-o-y primarily due
EBIT 1,949 631 5,473 8,438 to a significant increase in EPC revenue from South East Asia, Africa
and United States of America and Latin America
EBIT margin % 7.1% 3.8% 7.9% 10.0%
– A total of 19 EPC projects were executed across 10 countries in
PBT 1,943 603 5,287 7,592
FY19; EPC revenues recognized for the first time from Australia
PBT Margin % 7.1% 3.7% 7.7% 9.2% – O&M revenues jumped 113.9% y-o-y to INR 936 mn in FY19
Tax expense 689 289 781 1,209 – Improvement in EBITDA Margins due to operating leverage and
efficiency in operations
Tax rate % 35.5% 47.9% 14.8% 15.9%
– Increase in finance cost of INR 846 mn was offset by the interest
PAT 1,254 314 4,505 6,382
income of INR 1,597 mn from related parties
PAT Margin % 4.6% 1.9% 6.5% 7.7%
(1) Information for FY16 and FY17 pertains to the solar EPC business transferred into the Company subsequently.
*Gross Profit does not include impact of forex related to project and operations; all numbers are rounded off to the nearest whole number, percentages to one decimal place
Strictly Private and Confidential 37
Balance Sheet
FYE March 31 (INR mn) FY16 FY17 FY18 FY19 Key Highlights
Assets
Asset light model with low fixed assets and nominal capital
Non current assets 82 208 416 672
investments
Tangible assets (incl. CWIP) 61 76 231 265
Intangible assets 6 9 10 49
Deferred tax assets (net) 10 111 110 321 – Customers provide real estate assets for projects
Other non current assets 5 12 64 36
– Company takes assets / equipment required for projects on a
Current assets 7,051 10,577 48,788 53,247 lease basis
Inventories 13 149 186 131
Trade receivables 4,683 6,480 18,215 19,002
– Entails low capex and fixed investments
Cash & cash eq. & bank balances 309 109 1,041 4,545
Loans 16 28 94 19,534
Other current & financial assets 2,029 3,811 29,253 10,034 Low working capital requirements due to low inventory
requirement, short duration of contracts with an average life of one
Total assets 7,132 10,785 49,204 53,919 year, and nature of payment cycle of customers and suppliers
Current liabilities 7,891 10,187 47,209 45,458 Borrowings in FY17 and FY18 mainly on account of buyer’s credit
Borrowings 3 3,151 1,841 22,278 taken for import of raw materials
Trade payables 6,738 4,629 37,398 19,125
Derivatives 32 194 104 - Borrowings at end of FY19 increased substantially on account of
Provisions 321 379 552 769 restructuring due to the Demerger whereby the Company
Other current & financial liabilities 796 1,836 7,314 3,286 increased debt and extended loans and advances to the group
company
Total equity and liabilities 7,132 10,785 49,204 53,919
(1) Information for FY16 and FY17 pertains to the solar EPC business transferred into the Company subsequently.
*all numbers are rounded off to the nearest whole number, percentages to one decimal place
Strictly Private and Confidential 38
Illustrative working capital cycle depiction
Overall Profit on
the Project
100%
80%
40%
0%
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
Cash inflow Cash outflow Cumulative cash inflow Cumulative cash outflow
Net Working capital (INR mn)