Gensol Engineering Limited · Power, BPCL, Soft Bank Energy, Shapoorji , SBI, ... Environment,...

Gensol EngineeringLimitedInvestor Presentation

September, 2019

Solar Advisory| Solar EPC | Solar O&M

Safe Harbour Statement

This Investor Presentation has been prepared by Gensol Engineering Limited (GEL) and does not constitute a prospectus or placement memorandum or an

offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should not be

deemed to constitute an offer. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness,

accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as

of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”,

including those relating to the general business plans and strategy of GEL its future financial condition and growth prospects, future developments in its

industry and its competitive and regulatory environment, and statements which contain words or phrases such as ‘will’, ‘expected to’, ‘horizons of growth’,

‘strong growth prospects’, etc., or similar expressions or variations of such expressions. These forward-looking statements involve a number of risks,

uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the

forward-looking statements. Further, no representation or warranty expressed or implied is made nor is any responsibility of any kind accepted with

respect to the completeness or accuracy of any information. Also, no representation or warranty, express or implied, is made that such information

remains unchanged in any respect as of any date or dates after those stated herein with respect to matters concerning any statement made in this

Investor Presentation. GEL may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person

of such revision or changes. This presentation cannot be copied and disseminated in any manner. No person is authorized to give any information or to

make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be

relied upon as having been authorized by or on behalf of GEL. This presentation is strictly private & confidential. The earlier versions of this presentation,

were in draft form, and should not be circulated or referred to by any person.

Integrated Engineering and O&M Service Offerings in Solar Industry

About Gensol Incorporated in 2012, Ahmedabad based;

Provides Integrated Engineering and O&M Services across Solar Value Chain in India and abroad

Driven by experienced team of Management, Engineers, R&D

Providing Concept to Commissioning Solar Advisory, Project Diligence, Pre & Post bid Consulting, Execution, Operation & Management Services for Solar projects

Services to Leading Renewable Energy Companies, Financial Institutions, Government Organizations, Airports, Developers, Investors, etc.

Elite Clientele – ReNew Power, Adani Group, Greenko, Tata Power, BPCL, Soft Bank Energy, Shapoorji, SBI, Edelweiss, etc.

Demonstrating robust financial performance

500+Employees

19,000+ MW

Technical Expertise

10+Countries

180+Engineers

150+Clients

40+R&D Team Strength

Gensol – Consolidated Business Verticals

49%

Advisory

19,372 MW

EPC Service

190 MW

GensolEngineering

Limited

O&M Service

Resco Services

1.4 MW

51%

2,200 MWGensun

RenewablesPvt.Ltd.

(Subsidiary)

Solarig GensolUtilities Pvt. Ltd.(Joint Venture)

Leadership Team

Anmol Singh Jaggi, Chairman & Managing Director

• Bachelor of Technology under Petroleum Engineeringbranch from University of Petroleum & EnergyStudies, Dehradun;

• Experience of 12 yrs in Renewable Energy;• Responsible for all corporate decisions for the

business operations

Puneet Singh Jaggi, Whole Time Director

• Bachelor of Technology (Chemical Engineering) fromIndian Institute of Technology Roorkee;

• Experience of 9yrs in Solar Industry;• Responsible for designing of Technical Architecture &

Manage Product Development Cycle.

Gaurav Kharbanda, Independent Director

• MBA in Finance & IT;• Experience of 13 yrs;• Associated with Reliance Capital Ltd.,

Jamna Auto Ltd.• Working as an Individual Financial Advisors

• B.Com from University of Delhi;• Experience of 28yrs;• Associated with Reliance Capital as Senior

VP & Head Infra Finance, SBI as ChiefManager & Mytrah Energy India Ltd. as VP(Finance) in past

Harish Kaushik, Independent Director

Jasminder Kaur Jaggi, Non-Executive Director

• Bachelors Degree in Political Science and a Bachelor’sdegree in Education

• 14 years of cumulative service as a Teacher in bothArmy as well as Private Schools

• Responsible for Human Resource related activities ofthe Company

Experienced Management

Mr. Gurpreet Singh Walia

Vice PresidentProjects & Engineering

Ms. Shivya Singhal

Vice PresidentSupply Chain & Finance

Mr. Ali Imran Naqvi

Vice PresidentBusiness Development

Mr. Pranay Mundra

President

Mr. Rajesh Parmar

CS & Compliance Officer

Ms. Shilpi Dangi

Sr. ManagerEngineering

Ms. Payal Saxena

Sr. ManagerStrategic Advisory

Mr. Kohinoor Dam

General ManagerField Services

Mr. Jabir Mahendi Aga

Chief Financial Officer

BUSINESS OVERVIEWEND TO END ADVISORY

IN RENEWABLE ENERGY SPACE

Solar Advisory Services 19,372 MW 155+ PROJECTS

Ow

ners

Eng

inee

r • Detailed Project Report (DPR)

• Procurement Assistance

• Design Vetting• Construction

Supervision• Plant Handover

Lend

ers

Engi

neer • Techno -

Commercial Assessment

• Construction Progress Reporting

• Generation & Operations Reporting De

taile

d En

gine

erin

g • Basic Drawings• Detailed

Drawings & Calculations

• Field & Material Quality Procedures

• As Built Drawings Pr

ojec

t Man

agem

ent • Implementation

Schedule Adherence

• Quality Adherence

• Material & Work Certification

• Health, Safety & Environment

• Construction Management Po

licy

& S

trat

egic

Adv

isor

y • Bidding Assistance

• Policy Advisory• Technical Due

Diligence

Benefitting by Providing Engineering & Advisory Services; Growing Demand backed by Strong Investment in Solar Power Sector

RESCO ServicesSolar O&M ServicesSolar EPC ServicesSolar Advisory Services

Key Clients

Solar Advisory Services - Clients

Design Review & Detailed Engineering2,750 MW

Project Management3,600 MW 2,570 MW

Lenders’ Engineer

8,350 MW

Policy & Strategic Advisory

11,490 MW

Detailed Project Reports

Key Lenders


Also Wind Clients

800 MWp for Greenko in Andhra Pradesh

India’s Largest Solar PV Plant in Single Location


Consulting Services Provided :- Due Diligence Services- Detailed Project Report- Detailed Engineering - Performance Acceptance Tests & Plant Handover- Project Management Consultancy

Solar EPC Services 190 MW 53 PROJECTS 180+ ENGINEERS

Rooftop SolarShed Roof SolarGround Mounted Solar

Services Offered Turnkey EPC Installation & Commissioning EPC Management

Project Engineering √ √ (Selectively) √

Equipment Supply √ √(Minor Equipment) -

Project Execution √ √ √(Management)

Performance Guarantee

√Complete system

√(Equipment & Execution Only)

√(Design only)


Carport Solar

Solar EPC Services - Clients

25 MW Sunfan Energy, Karnataka

4.7 MW across, Madhya Pradesh

2 MW, Kenya

Key Clients


Samsonite South Asia

Maharashtra, India


Solar O&M Services 2200 MW 45 PROJECTS 210 EMPLOYEES

Long Term Contracts (5 to 10 years)

Annuity Revenue generation

Lead generation from Clients in Services & EPC segment

JV entity - Solarig Gensol Utilities Pvt. Ltd.

JV with Solarig Ngage from Spain;

49% held by Gensol Engineering

Started in 2015


Solar O&M Services - Clients

Key Clients


Thermography Drones

Proprietary SCADA & Monitoring Centre

I-V Curve Testing

Robotic Cleaning CMMS

Advanced Technology

Onsite & At Monitoring Centres


Analytics :

Data Driven Performance Management


Growth Trajectory – O&M Services


O&M Business has been growingat a CAGR of 300% withprojects across 8 states in Indiaand projects in 3 countriesinternationally.

RESCO Services 1.4 MW 3 PROJECTS

Gensun Renewables Pvt. Ltd. is subsidiary of GEL mainly focus on RESCO Services;

Entered into Power Purchase Agreement (PPA) for o Designo Manufacture o Supplyo Erectiono Testing and Commissioning

Power production from solar PV plants

What is RESCO?

Under the RESCO model, a rooftop area is madeavailable by the rooftop owners for setting up solarprojects. Rooftop owners derive revenues from leaserentals and/or cheaper power from solar PV projects,while the solar company can contract with buyers suchas DISCOMs or other open access consumers and sellsolar power generated from the project.


RESCO Services - ClientsAPPA University – 600 kWp

BLDE – 709 kWp

KLE – 150 kWp

Key Clients


Environment, Health & Safety

Engineering Projects Overview

Innovative Projects Carried by Gensol

TANGEDCO Kadaladi Solar Park

Bhadla II Solar Park

APGENCO Kadapa Solar Park

Owners’ Engineer

Acquisition/Merger

Lenders’ Engineer

SOLAR PARKS SOLAR AT AIRPORTS

Chennai Airport Ahmedabad Airport

Delhi AirportFour Oman Airport

Owners’ Engineer

MAHAGENCO - AG FeederOwners’ Engineer

FLOATING SOLAR

MAHAGENCO

REC- Thermal Plants Reservoir

JSW Energy Limited-

Owners’ Engineer

CANAL TOP SOLAR

Owners’ Engineer

UJVNLSam Solar

SOLAR For AGRICULTURE FEEDERS

SINGLE WINDOW ONLINE WEBTOOL

IFC – Rooftop Proliferation Tool for Maharashtra Energy Development Agency

End Client

MAHAGENCO Kacharala Solar Park

Hyderabad Airport

Engineering Software & Tool’s

To estimate the energy generation at variousprobability exceedanceetc.

Shading Analysis to illustrate thesunshine availability at the areas beingplanned for SolarPVPanel

Conducted to analyze the possibility of Glint and Glare of the solar PV panels

Hybrid Optimization Model for Multiple EnergyResources) nests three powerful tools, i.e.,Simulation, Optimization & Sensitivity Analysis

Computer-aided design (CAD) program used for 2-D and 3-D design and drafting.

Roof/Area Optimization, Computer AidedDesigning and Energy Generation Simulation

Global Presence

National Presence across 22 Indian states with offices at Delhi, Ahmedabad, Pune

International Presence across Africa, Middle East & South East Asia

Select Projects Executed

Location Capacity (MW) Description of Services Client

Maharashtra 2500.00 Policy Advisory Owner’s Engineer

Maharashtra 4.50

Detailed Project Report Detailed Engineering

Procurement Assistance in selection of EPC contractors

Tamil Nadu 500.00 Owner’s Engineer

Tamil Nadu 6.50 Owner’s Engineer

Uttar Pradesh 1.00 Detailed Engineering

Assam - Techno Commercial Feasibility Study

Haryana - Techno Commercial Feasibility Study (Ongoing)

Gujarat 1.02 Engineering , Procurement & Construction (Ongoing)

Project Location Capacity (MW) Description of Services Client

N'djemena, Chad 100.00 Detailed Project Report

Mouila, Gabon 100.00 Detailed Project Report

Saudi Arabia 6000.00 Detailed Project Report

Seirra Lione, Africa 50.00 Detailed Project Report

Seirra Lione, Africa 100.00 Pre-Bid Assistance

Kenya 1.53 Detailed Design

Nepal 4.00 Detailed Engineering Clean Communications

Philippines 25.00 Detailed Engineering Green Tech solar Inc

Afghanistan 10.00 Design Vetting

Solargy (Leone) 1.40 EPC

National International

Blue Ocean Strategies

Strengthen our solar advisory & consultancy services portfolio

Focus on developing O&M portfolio

Expand our customer base by getting repeat orders from current clients &

adding new clients

Targeting new geographies in MENA and South Asia market

Continue to focus on R&D activities and introduction of new technologies

Implement Group Level SAP ERP systems for faster decisions making and bettergovernance. Gensol’s project is one of the first projects on SAP Cloud Platform ona global level

Plan to capitalize on India’s Digital Sky programme and induct the advanced fleetof drones to extend best global practices in thermography inspection and aerialsurveillance of solar plants, thereby adding significant value to its customers andbringing overall cost of operations down

Plan to ramp up third party testing services significantly to further our marketshare with existing client base. Third party testing services position Gensol withthe likes of TUV and DNV who operate in similar space but are not cost effectivew.r.t. Indian market expectations

Blue Ocean Strategies – Current Major Initiatives

Media Coverage

INDUSTRY DYNAMICSINCREASE IN SOLAR CAPACITY

INVESTMENT WILL LEAD TO DEMAND IN ADVISORY & CONSULTING SERVICES

GOI has set targets to achieve 175GW in solar capacities by 2022… Renewable Energy capacities expected to become 3x in 5 years

5878

100123

148175

FY17 FY18E FY19E FY20E FY21E FY22E

Renewable Energy(GW)

63%21%

16%

RE break-up in FY16

Wind Other Solar

34%

57%

9%

Proposed RE break-up in FY22

Wind Solar Other

…with emphasis on ground-mounted as well as rooftop… …supported by falling capital cost of Solar PV project

5.1 10 16 23 31 4012.7 23

3343

5260

FY17 FY18 FY19 FY20 FY21 FY22

Roof-top (GW) Ground Mounted Solar (GW)

17.8 32.8 48.8 65.8 83.3 100

8069

5140

26 23 19 17 15

FY14 FY15 FY16 FY17 FY18 FY19E FY20E FY21E FY22E

Module Price Trend & Forecast (INR/Wp)

Over the next 6 years the sector will need investment of ~ INR 4.7 trillion

India Renewables – Solar Energy

Solar Capacity (GW)

Interesting Facts on Solar Industry

Registered lowest ever solar tariffs in India of Rs.2.44 per unit in July, 2018

Registered lowest ever wind tariff of Rs.2.43 per unit in December, 2017

International Energy Agency estimates “India’s solar potential is greater than 750 GW”

0%

20%

40%

60%

80%

1990 1995 2000 2007 2012 2013 2014 2015 2016 2017 2018 2019 2020

Shifts in India's Energy Mix: 1990-2019

REs contribution Coal contribution Source: CEA

Green Energy : Impact Investment

Did You Know?• Nearly 300 million Indians are still under electrified.

• India’s 2 GW park in Karnataka to be World’s Largest: To power nearly 1 million households; To reduce CO2 emissions by 20 million tons a year

Direct environmental benefits of Solar Energy: Lower carbon dioxide and methane emission No harmful greenhouse gasses Cheaper source of electricity powering millions of households

PRI highlights that signatories allocated ~US$900 billion to renewable and alternative energy investments in 2016.

World Bank lent more than $1 billion for Renewable Energy in FY 2017 to India. Bank’s largest-ever support for solar power in any country.

Source: PRI, World Bank, “An Assessment of India’s Energy Choices” by ISB, CPI, JNU, IIT Delhi

FINANCIAL PERFORMANCE

DEMONSTRATED FINANCIAL PERFORMANCE ACROSS BUSINESS SEGMENTS

Financial Snapshot (1/3)

FY16 FY17 FY18 FY 19O&M 20 93 558 1047Engineering & Advisory 445 988 2250 1697EPC 747 5136 4094 5595

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Service-wise Revenue Breakup (in lakhs)

37%62%

16%

83% 60%

32%

8%

67%

21%

13%

2%

Total 1212 6217 6902 8339


15

121

654

1304

FY16 FY17 FY18 FY19

Networth (in lakhs)

55182

785

1005

FY16 FY17 FY18 FY19

EBITDA (in lakhs)

36119

534

650

FY16 FY17 FY18 FY19

PAT (in lakhs)

Return on Equity – 66.4%

Return on Cap Employed – 70.2%

0263%

0443%

0262%


Total Outstanding Order Book as on Q1 2019

₹ 341.18 cr

Consolidated Balance SheetParticulars (in lakhs) FY 19 FY18 FY17 FY16

EQUITY AND LIABILITIESShare capital 604 1 1 1Reserves and surplus 700 653 120 13Networth 1,304 654 121 15Minority Interest (0) 1 - -Long-term borrowings 680 74 16 0Long-term Provisions 42 28 21 10Short-term borrowings 5 20 15 -Trade payables 919 952 230 132Other current liabilities 1,138 810 558 379Short-term provisions 201 104 35 13Total 4,289 2,644 997 550ASSETSFixed Assets 842 88 14 17Deferred Tax Asset (Net) 48 38 47 42Long-term loans and advances - 23 0 -Other non-current assets 163 35 10 9Trade receivables 2,256 1,639 642 349Cash and Bank Balances 256 192 71 45Short-term loans and advances 98 218 212 26Other Current Assets 627 411 1 62Total 4,289 2,644 997 550

Consolidated Profit & Loss StatementParticulars (in lakhs) FY19 FY18 FY17 FY16

Revenue from operations 8,339 6,902 6,217 1,212

Other income 47 62 15 4

Total Revenue 8,385 6,964 6,232 1,216

Expenses:

Purchase of stock in trade 3,458 3,227 4,179 472

Employee benefits expense 1,532 1,085 604 331

Other expenses 2,390 1,867 1,266 358

EBITDA 1,005 785 182 55

Depreciation and amortization expense 44 12 12 1

EBIT 961 773 171 54Finance costs 77 28 4 2

PBT 884 745 166 52Tax expense:

(1) Current tax 244 203 52 13

(2) Deferred tax (10) 9 -5 3

PAT 650 534 119 36

Consolidated Cash Flow StatementParticulars (in lakhs) FY19 FY18 FY17 FY16

Cash flow from Operating Activities Net profit before taxation, and extraordinary items 884 745 166 52Adjustments for :

• Depreciation & Amortisation 44 12 12 1• Interest & Finance Cost 77 28 4 2• Interest income (6) (6) (2) -

Operating Profit Before Working Capital Changes 999 779 181 55Adjusted for (Increase)/ Decrease:

• Trade Receivables (617) (997) (293) (243)• Other Current assets (344) (435) 60 (55)• Loans and advances and other assets 143 (29) (186) 5• Trade payables (33) 722 98 103• Other Current Liabilities & Provisions 274 265 199 170

Less : Income Tax paid (80) (141) (52) (19)Net Cash Flow from Operating Activities (A) 343 165 6 15Cash flow from Investing Activities Purchase of Fixed Assets (798) (85) (9) (17)Bank Deposit Matured (47) (7) (48) (1)Interest Income 6 6 2 -Net Cash Flow from Investing Activities (B) (839) (87) (55) (19)Cash Flow From Financing Activities (Payment)/ Proceeds From Share Capital/Minority Interest Holders - 0 - -Proceeds from long term borrowings 605 59 16 -

(Repayments)/ Proceeds from short term borrowings (Net) (15) 4 15 -Interest & Financial Charges (77) (28) (4) (2)Net Cash Flow from Financing Activities (C) 513 35 27 (2)Net (Decrease)/ Increase in Cash & Cash Equivalents (A+B+C) 17 113 (22) (5)Cash and cash equivalents at the beginning of the period 130 16 38 43Cash and cash equivalents at the end of the period 147 130 16 38

IPO OPPORTUNITY

IPO Details

Sr. No. Particulars Amt. (INR in lakhs)

1. Funding of working capital requirement 1,350

2. General Corporate Purposes [▪]

IPO Details

Issue Size Upto 21,60,000 Equity Shares

Issue Size in Amount INR 17.49 crs – INR 17.93 crs

FaceValue INR10

Price Band INR 81 – 83

Pre Issue No. of Shares 60,42,737Equity Shares

Post Issue No. of Shares 82,02,737 Equity Shares

Listing On BSE SMEBid/ Issue Opens On September 30, 2019Bid/ Issue Closes On October 4, 2019

Shareholding Pattern Pre-IPO Post-IPOPromoter & Promoter Group Holding 96.00% 70.72%

Public Holding 4.00% 29.28%

Book Running Lead ManagerPantomath CapitalAdvisors Pvt. Ltd.

Registrar to the IssueLink Intime India Pvt. Ltd.

ReservationFor No. of SharesMarket Maker 1,08,800

Retail Portion 10,25,600

Non-Retail Portion 10,25,600

Utilization of Net Proceeds

Investment Rationale

Why

Investin Gensol

Engineering

Integrated Services Offerings for entire Solar Value chain

Clienteles includes Soft Bank, ReNew Power, Adani, etc

Growing pie of Annuity revenue generating O&M business

Strong Human capital - Experienced team of Management,Engineers, R&D

Continuous investment in R&D and Technology

Demonstrated Operational Track Record in field of Services & Consultancy to Solar Companies, Banks & Other Stakeholders

Huge Addressable Market : Domestic as well as Overseas

Robust financial track record across segments

1

2

3

4

5

6

7

8

THANK YOU

Registered Office SCO : 156-157,

First Floor, Sector 9C, Madhya Marg,

Chandigarh -160009, India

Corporate OfficeA2, 12th Floor, Palladium,

Opposite Vodafone's House,Corporate Road, Prahladnagar,

Ahmedabad - 380051, India

Gensol Engineering Ltd | Solarig Gensol Utilities Pvt Ltd | Gensun Renewables Pvt Ltd

THANK YOU!

Gensol Engineering Limited · Power, BPCL, Soft Bank Energy, Shapoorji , SBI, ... Environment,...

Documents

Transcript of Gensol Engineering Limited · Power, BPCL, Soft Bank Energy, Shapoorji , SBI, ... Environment,...