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Orient Green Power Company Ltd.

BSE: 533263 Sector: Infrastructure
NSE: GREENPOWER ISIN Code: INE999K01014
BSE 00:00 | 07 Aug 2.19 0.02
(0.92%)
OPEN

2.23

HIGH

2.23

LOW

2.12

NSE 00:00 | 07 Aug 2.20 0
(0.00%)
OPEN

2.20

HIGH

2.25

LOW

2.10

OPEN 2.23
PREVIOUS CLOSE 2.17
VOLUME 564504
52-Week high 3.57
52-Week low 1.20
P/E 5.62
Mkt Cap.(Rs cr) 164
Buy Price 2.19
Buy Qty 50.00
Sell Price 2.23
Sell Qty 24998.00
OPEN 2.23
CLOSE 2.17
VOLUME 564504
52-Week high 3.57
52-Week low 1.20
P/E 5.62
Mkt Cap.(Rs cr) 164
Buy Price 2.19
Buy Qty 50.00
Sell Price 2.23
Sell Qty 24998.00

Orient Green Power Company Ltd. (GREENPOWER) - Chairman Speech

Company chairman speech

Dear Shareholders

India is presently the world's third largest consumer of electricity. The Country'sdemand for electricity which has expanded in sync with the economic growth is expectedto maintain its momentum and is likely to be the fastest growing energy market in theworld for the next two decades. India has achieved numerous landmarks in recent yearsmost prominent one being a meaningful reduction in Power deficit. The Demand supplyscenario has improved considerably for several states across India. From an era ofdeficit the states have moved considerably towards a situation where the average deficithas narrowed down significantly. Factors such as policy clarity political push as well asadministrative reforms have encouraged capacity addition. Further the energy mix of thecountry is also changing over the years - while Coal continues to dominate the scene theGovernment's attempts towards diversifying and increasing the share of clean energy hasresulted in proportion of Renewable Energy increasing rapidly in the overall mix.

Power Generation from Renewable Sources has grown manifold in recent years in Indialargely on the back of supportive Government Policies and initiatives. Renewable Energyinstalled capacity has grown at a CAGR of 25% over the period 20152019. Renewable Energypresently constitutes around 22% of the country's overall energy mix. On a global scaleIndia is the fifth largest player in Renewable Energy in terms of installed capacity.Within Renewable Energy Wind and Solar account for over 82%. Further Solar and Wind alsorank amongst the highest in terms of potential for further growth. There is significantamount of potential for renewable energy capacity installations in India. HoweverRenewable Energy continues to face challenges and growth hurdles. While rising investmenthas created a vibrant and competitive Renewable Energy market in the country it is theprivate sector which has played a critical role in building most new Renewable Energycapacity - it has developed aggressive financing mechanisms and has mobilized massiveamounts of capital.

Your Company ranks amongst the country's leading energy generating companies withassets aggregating 425 MW as of March 31 2019. The Company's wind assets are also locatedacross some of the best wind sites in the country. Further the Company's assets comprisea mix of installations by leading suppliers.

Financial year 2019 was a year of consolidation for the business a year wherein theCompany saw marginal dip in revenues due to delayed onset of wind season and impact ofcyclone Gaja which resulted in a drop in the wind availability. The reduced unitsgenerated and decline in revenues resulted in operating de-leverage and impacted EBITDAand resultant profit generating ability of the business. However efforts have beenundertaken to improve efficiencies and a rebound in wind availability to normal levelscoupled with improvements in the REC mechanism will enable the company to deliver a steadyprofitable performance in the future.

Steady PLFs and stable tariffs have allowed the Company to exhibit fairly consistenttrend in revenues over a period of FY-15-19. The introduction of scheduling andforecasting mechanism to ensure improved uptime of the grid and sale of excess power tooutside states has also triggered growth for the Company in recent times. The Company'svaried and diversified off-take agreements ensures steady cash flow and revenuegeneration. The Company is now much leaner agile and growth focused and is undertakingall the requisite measures towards reviving the business. Further with the improvingbusiness environment in terms of better grid availability introduction of biddingmechanism buoyancy in REC market the Company is well on track towards delivering steadyconsistent returns. The wind business now continues to operate in an environment whereingrid availability in Tamilnadu continues to remain elevated - 95% plus on a consistentbasis. Financially viable tariff rates for both consumers and wind projects developersalike has spurred demand for renewable energy. The revival in REC market on the back offavorable demand-supply has also helped ease the Company's liquidity and cash flowprofile. Stringent actions on part of regulatory organization have ensured that RECemerges as an ancillary revenue stream for the Company. For the fiscal year 2019 thecompany has liquidated its entire REC inventory.

The Company's efforts in recent years especially post selling off of biomass businesshave been towards consolidating its leadership position in the renewable energy space. Themanagement has undertaken multiple strategic steps towards addressing its legacy issuesand believes the company is well placed towards embarking on a new growth phase of thebusiness. The Company has been successful in reducing its debt burden and is hopeful offurther improvement in its balance sheet and cash flow going forward.

The Company having addressed most of its growth hurdles is relatively well placed tochart a new course for the business - a course much more positive and profitable for allof its stakeholders

On behalf of the Board of Directors of the Company I acknowledge the support receivedfrom the shareholders employees Government and banks in putting the Company into thetrack of sustainable growth.

N. Rangachary

Chairman