Annual General Meeting - Tata Power · 2020. 7. 30. · • On an average, ~10,000 employees incl. 8,000 contract labour were working at various sites / locations on a daily basis

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Annual General MeetingPraveer Sinha, CEO & Managing Director

30th July 2020

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COVID-19 and Indian Power Sector

Decline in electricity demand and significant impact on liquidity in the sector

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2019 2020

Mar 24:

Lockdown

May 4: Essential

manufacturing

and offices open

gradually

Daily Electricity Demand, India

• Disruptions in billing and collections

• Liquidity issues during April – June

• Delays in discom payments

• Lower generation (PLF) of coal based plants on

account of lower demand

• Project delays on account of supply disruptions,

workforce shortage and financing restrictions

3

COVID-19 and Tata Power

Operations continue at Benchmarks levels to provide uninterrupted power supply across the cities they serve in

• No significant impact on operation and availability of our 11 thermal & hydro plant sites,

70 Renewables sites, Transmission assets in Mumbai and Distribution Assets in Mumbai, Delhi

and Ajmer

• Delay in execution of renewables projects during initial periods of lockdown. Work at sites

has restarted in May 2020 and we are expecting to catch up in Q2/Q3 FY21

• Returns from Regulated business unaffected

• Receivables have been stretched due to moratorium and delayed payments but it has

picked up in June / July 2020

• On an average, ~10,000 employees incl. 8,000 contract labour were working at various sites

/ locations on a daily basis

• Ensured availability of PPEs and masks for all employees; social distancing, screening &

temperature monitoring; disinfection of office spaces

COVID-19 SOPs Implementation (Generation, T&D, Renewables, New Businesses and Corp Offices)

2

Online Self DeclarationSocial Distancing during

Entry/ExitHand Sanitization

Employees Transport Deep Cleaning

Facilities Deep Cleaning

Residential Colony Sanitization

Online Mass Awareness Campaign

Social Distancing at Work Multi-layer Screening Touch Point Sanitization

Social Distancing in Control Room

Marking for Social Distancing

Sanitization of OfficeInside plant stay

arrangementSanitization of workplace

Ensuring Business Continuity

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COVID-19 Community Response Action

6.91 LakhsFace Mask order received & Dhaagamembers successfully supplied 5.81 lakhs masks till date

3600 Cattle supported with 3 lakhs+ Kgs fodder supply

COVID-19 INTERVENTIONS

• Identification & survey of Migrant workforce

• Awareness Building on Prevention Measures

• Face Mask Making and Distribution through Dhaaga Women Members

• Enabling Mobilty of Basic Items to villages (Water and Fodder)

• Govt schemes linked Essential Items Distribution for Migrants & Vulnerable Communities

Efforts across 15 States : Maharashtra, Delhi, Gujarat, Odisha, WB,

Jharkhand, Telangana, MP, AP,UP, Punjab Karnataka, Bihar, Rajasthan &

Tamil Nadu

2262 Tata Power Employees contributed 1

Day Salary to Tata Community

Initiative Trust

4.16 Lakhs People linked with PDS system

3.50 LakhFood packet distributed to

migrant labours and medical

staff in hospital

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Key Trends in Indian Power Sector

Power Sector In India

Major Trends

Consistent growth in electric energy

demand

Peak

Ele

ctr

icit

y D

em

an

d (

GW

)

Per capita consumption in India very low compared to

global average, though growing

Low Per Capita Energy Consumption

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Losses at ~19-20% despite UDAY target

of 15% by FY19

Low PLF of Coal based Assets

148153

160 164

177184

FY15 FY16 FY17 FY18 FY19 FY20

1010

1075

1122

1149

1181

1208

FY15

FY16

FY17

FY18

FY19

FY20 (P)

25

.7

24

.0

23

.5

22

.3

22

.0

19

.1

0.580.48 0.37

0.3

0.52

0.41

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FY15 FY16 FY17 FY18 FY19 FY20(E)

AT&C losses (%) ACS-ARR Gap (Rs./Unit)

Both, installed capacity and % contribution to generation from RES continue to grow strongly

Renewable Energy growth

3239

5769

78872.2%

5.6%6.6%

7.8%

9.2%9.9%

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2.0 %

4.0 %

6.0 %

8.0 %

10. 0%

12. 0%

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Installed Capacity (GW)

% energy share of RE

Average thermal coal based PLF show a sharp decline after

stabilisng for 3 years – RE growth and lockdown impact

Fin

an

cia

l Health

of D

ISC

OM

s

165 185 192 197 201205

64.2562.24

59.8159.91 60.3

55.99

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100

150

200

250


Installed Capacity (GW) PLF

7

Thermal & Hydro

8,805 MW

Thermal

447 MW

Hydro

375 MW

Waste Heat / BFG

Renewables

932 MW

Wind

1,705 MW

Solar

T&D

3,531 ckt km

Transmission

26.2 lakh

Distribution(No. of customers)

(Installed capacity)





(Line length)

54 MW Thermal + 424 MW Hydro International Installed Capacity

CONVENTIONAL BUSINESS MODELS

25,000 + Pumps

421 MW

94 Cities

170 Charging Points

20 Cities

Set up Tata Power

Renewable Microgrid

Limited (TPRMG)

Plan to launch in Delhi

& Mumbai with IoT

devices and app

CUSTOMER FOCUSED NEW & SERVICE-LED BUSINESS MODELS

EV Charging Solar Rooftop Solar Pumps Microgrids Home Automation

India’s Largest Integrated Private

Power Player

Tata Power – Domestic Footprint in FY20

12,264 MW

Installed Capacity

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Key Highlights – FY20

✓ Highest ever order book of

Solar EPC business of Rs. 7,000

Crore (1,580 MW)

✓ 312 MW of solar power

capacity added; 700 MW solar

projects under implementation

✓ TPRMG launched-18

microgrids test charged & 55

projects are in pipeline

✓ Sold investment in Cennergi

Pty Limited to Exxaro

Resources Ltd on 31st March

2020 for Rs. 737 crore

✓ Rooftop solar projects rolled

out in 94 cities across India

(421 MW)

✓ 170 EV charging points

installed in 20 cities as part of

EV charging infra partnerships

✓ Mobile application for EV

Charging Services rolled out

✓ Acquisition of Central

Electricity Supply Utility (CESU)

of Odisha (51% equity stake)

through Public Private

Partnership (PPP)

✓ 1.95 lakh SMART meters

installed in Delhi distribution

licensed area

✓ VAS for distribution customers

– Microsoft Kaizala, KYEC,

interactive bill service through

WhatsApp

✓ Completed onboarding of first

asset though the Platform

structure (Renascent) – 1,980

MW PPGCL asset, Uttar

Pradesh

✓ 2 Hydro generation units

totaling 178 MW

commissioned in Georgia

Renewables New Business T&D Thermal & Hydro

9

1,2

74

1,2

31

FY19 FY20

PAT before exceptional items

(Rs. Cr.)

2,6

06

1,3

16

FY19 FY20

PAT with exceptional items

(Rs. Cr.)

Financial Performance Highlights – FY20

Consolidated Performance

29

,98

4

28

,94

8

FY19 FY20

Revenue (Rs. Cr.)

7,2

35

8,3

17

FY19 FY20

EBIDTA (Rs. Cr.)

✓ Net cash flow from operations increased by ₹ 2,801 crore from

FY19 (+61%)

✓ EBIDTA increased by 15% in FY20

✓ Steady improvement in ROCE from 6.4% in FY18 to 7.4% in FY20

✓ Consistent improvement in Net Debt/Equity from 2.8 in FY17 to

1.99 in FY20

✓ ₹ 1,294 crore y-o-y reduction in Net Debt

2.1

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1.9

9

FY19 FY20

Debt/Equity

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Power Index Tata Power

Tata Power’s stock performance

mirrored the performance of the

S&P BSE Power Index

BSE P

ow

er

Ind

ex Ta

ta P

ow

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Cluster-wise Financial Performance – FY20

Tata Power Group - FY20

Revenue ₹ 28,948 Cr.

Operating Profit ₹ 7,754 Cr.

Reported EBIDTA ₹ 8,317 Cr.

Underlying EBIDTA incl. share of PAT of JV & Associates ₹ 9,269 Cr.

Net Debt ₹ 43,578 Cr.

Net Debt / Equity 1.99

Except CGPL, Coal & Shipping


EBIDTA ₹ 1,896 Cr.

PAT ₹ 955 Cr.

CGPL, Coal & Shipping



PAT ₹ (385) Cr.

Renewables



PAT ₹ 441 Cr.

Transmission & Distribution



PAT ₹ 940 Cr.

Thermal & Hydro

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Thermal & Hydro Generation (1/2)

Trombay, Mumbai (930 MW)(Division)

Mumbai Hydros (447 MW)(Division)

FY20

Availability (in %) 94

EBITDA (in ₹ Cr) 529

FY20

Availability (in %) 96.3


CGPL, Mundra (4,150 MW)(Wholly owned subsidiary)

MPL, Maithon (1,050 MW)(Subsidiary - Tata Power: 74%, DVC: 26%)

FY20



FY20



12

Thermal & Hydro Generation (2/2)

Jojobera, Jamshedpur (428 MW)(Division)

Haldia (120 MW)(Division)

FY20



FY20



Industrial Energy Limited (375 MW)(Subsidiary - Tata Power: 74%, Tata Steel: 26%)

DHPC, Bhutan (126 MW)(Associate - Tata Power 26%, DGPC & Affiliates: 74%)

FY20



FY20



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Coal & Infrastructure Companies

Coal Mining Companies Shipping Companies

FY20

Net Sales (in ₹ Cr) 1,086


FY20

Coal Production (in MT) 73

EBITDA (in ₹ Cr) 3,915

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Renewables

Renewable Business – TPREL, WREL & Standalone Assets(Wholly owned subsidiaries)

Tata Power Solar Systems Limited(Wholly owned subsidiary)

FY20

Net Sales (in ₹ Cr) 2,141


FY20



15

Transmission

Mumbai Transmission(Division)

Powerlinks (Subsidiary - Tata Power: 51%, PGCIL: 49%)

FY20



FY20



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Distribution

TPDDL, Delhi(Subsidiary - Tata Power: 51%, Delhi Government: 49%)

TPADL, Ajmer(Wholly owned subsidiary)

FY20

Distribution Sales (in MUs) 9,051


FY20

Distribution Sales (in MUs) 483


Mumbai Distribution, Mumbai(Division)

FY20

Distribution Sales (in MUs) 4,573


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Key Success Stories

• Acquisition of Central Electricity Supply

Utility (CESU) of Odisha (51% equity

stake) through Public Private

Partnership (PPP)

• Successfully taken over the

management of Discom from 01st June

2020 onwards

Particulars Description

Circles / Division / Sub-Division (Nos.) 5 /20 / 77

Area

Revenue Districts / Population

29,354 sq. km

9 Dist. / 1.36 Crore

Annual Turnover Rs 3,426 Cr

Consumers in numbers26.92

Lacs

Input Energy 8,160 MU

Energy Sold/Billed 6,271 MU

• Station achieved highest ever monthly DC of 99.71 % to

UPPCL in March’20 & achieved Yearly DC of 69.73 % in FY

20 for the 1st time ever in PPGCL

• M/s Resurgent Power Ventures Pvt. Ltd

acquired the Prayagraj Power

Generation Co. Ltd. (PPGCL) in

December’19 from its erstwhile owners

• Tata Power’s best practices in Safety,

Security & Operation and Maintenance

were implemented by team Tata Power

post take-over

Particulars Before

Takeover-

12th Dec 19

1st 3 Months

Operation

[Dec’19 to Mar 20]

Availability (DC) –UPPCL - % 64.37% 79.60%

APC - % 7.10% 6.47%

Heat Rate – kCal/kWh 2404 2301

Sp Coal Con – kg/kWh 0.65 0.61

PPGCL CESU

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Tata Power Solar ranked # 1 Solar Roof

player for the year 2019 by Bridge to India

Recorded highest ever order input of Rs

860 Crores+ (~239MWp) in FY20

New Beginnings

Installed 421 MW of Rooftop capacity

touching 30,000+ customers

TP Renewable Microgrid Ltd.

launched on 4th Nov 19 with a

Installed 170 EV charging

points in 20 cities

EV Charging Rooftop Solar Microgrids

Presence in cities like Mumbai,

Delhi, Pune, Kolkata, Hyderabad,

Bengaluru, Chennai, Ahmedabad

and Lucknow.

Tata Power has already test

charged 18 Micro-grid sites in UP

& Bihar

Another 55 sites for microgrid are

in pipeline

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Employee productivity

Connecting Digitally With Stakeholders

Customer experience

✓ Launch of ‘Kaizala’ App for

Mumbai customers

✓ AI assisted system for

analysis and resolution of

customer feedback

✓ Online New Connection

Application form

simplification

Operational Efficiency Business growth

✓ Central Control Room for

Renewable Assets (CCRA)

Infrastructure and platform

integration

✓ Sankalp (RCM) – Implementation

of APM tool in various generation

plants

✓ EV – Mobile App for EV

charging, developed in

collaboration with other

Tata group companies

✓ Implementation of Project

Management tool for Roof

Top Solar

✓ Implementing Sales Force

for Lead Management

✓ Setting up of Data Analytics

and Insights Academy for

analytical capability building

✓ Launch of e-learning platform

Gyankosh

Tata Power has implemented Integrated Management System (IMS) for Digital and IT and secured ISO 27001:2013 and ISO 9001:2015 Certification

• Realtime information on

consumption

• Faster onboarding of new

customers

• Enhanced satisfaction

Ben

efi

ts • Improved performance of

renewable assets through

real-time monitoring

• Optimised maintenance

practices

• Seamless experience for EV

customers

• Efficient project monitoring

• Better management of

business leads

• Capability enhancement for

better service delivery

• Improved productivity

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Building an engaged and future ready workforce

Employee Engagement

Capability Development

• Co-created with business leaders, for the business

and development of its people

• Highly contextualized to the company’s business

needs and overall strategy

Tata Power Analytics & Insights Academy

• Digital learning with blend of classroom training,

online synchronous classes from SME and on-the-

job learning

• Clear hierarchy of courses in terms of specialization

and plans for coverage.

eLearning & blended learning to be mainstream

learning mode

Integrated Talent Management – AMP Model

20

15

Overall Score:

74%

Overall Score:

83%

Overall Score:

69%

20

17

20

20

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Tata Power Focus Areas for Future

Resolution of CGPL coal

cost under-recovery

Deleveraging Balance Sheet

Scale-up Renewables (through

InvIT), Distribution, Services

and Energy Solutions

businesses

Focus on Sustainability with an

intent to attain carbon neutrality

Leverage digital solutions for

better customer experience and

improving productivity

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Strengthening Balance Sheet for future growth

Proposed Renewable InvIT is a growth engine &

targets to be India’s largest renewable InvIT with

capacity of ~ 15-20 GW

InvIT

• Infrastructure Investment Trust (InvIT) strategy

enables Tata Power to raise capital at lower

cost of capital post stabilization of assets and

grow the portfolio whilst deconsolidating

debt from its books

• Tata Power would continue to be one of the

largest Investor in proposed InVIT along with

asset manager.

• InVIT owns only risk free operational assets,

hence gives steady cash yield

Non-core monetization & Fund-raising

Cennergi(Wind asset in Sough Africa)

Transaction completed, received

sale proceeds in April 2020₹ 750 Cr

₹ 1,600 Cr

Shipping(3 owned vessels)

Transaction completed, received

sale proceeds in July 2020

₹ 2,600 CrPreferential

Issue

Subject to shareholder’s approval,

proceeds expected in August

2020

InvIT Debt

De-consolidation

₹ 1,500 – 1,700 Cr

ITPC (Hydro in Zambia),

BSSR (coal mine )

Arutmin Proceeds

Formal process initiated ,

expected to complete by Q4 FY21

FY20 Net Debt:

₹ 43,758Process of exploring InvIT

initiated, finalization in 4-6

months

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Empowering The Community

Tata Power reached out to over 27.10 Lakhs beneficiaries through its initiatives in FY20

Vidya

Mamta,

Samman

Adhikaar

Amrutdhara

Dhaaga, Abha,

Roshni, Daksh

2.68

5.41

3.12 1.63

Health and Sanitation

Financial Inclusivity

Water

Livelihood &

Skill Building

No. of beneficiaries reached out to in FY20 (in Lakhs)

Education

11.85

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FY20 Awards and Recognitions

✓ Tata Power won the ‘Best Risk Management Framework and Systems- Power’ and ‘Business Continuity’ at the 5th Edition

of The India Risk Management Awards 2019.

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✓ Tata Power won the prestigious Global Edison Awards under “Social Innovation (Social Energy Solutions)” category for

its ‘Club Energi- #SwitchOff2SwitchOn campaign

✓ TPSSL won the Gold Award for “Rooftop Solar EPC Company of the year” at the India Rooftop Solar Congress 2020

✓ Tata Power won the platinum award for Occupational Health & Safety from the Indian Chamber of Commerce

✓ Tata Power Delhi Distribution Ranked 4th in India’s Best Company to Work for 2019 Survey by Great Places to Work Institute

✓ Tata Power Mumbai Distribution won the theme of “Digitization’” Practices in the sector of “Services” at the 7th CII National

Excellence Practice Competition 2019

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Thank You!

Private and Confidential

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Please do not duplicate, circulate or distribute without prior permission.

Documents

Annual General Meeting - Tata Power · 2020. 7. 30. · • On an average, ~10,000 employees incl. 8,000 contract labour were working at various sites / locations on a daily basis