TIDMGKO
RNS Number : 7856Y
Greenko Group plc
04 December 2014
04 December 2014
Greenko Group PLC
("Greenko", "the Company" or "the Group")
Interim Results for the six months ended 30 September 2014 ("the
period")
Greenko, the Indian developer, owner and operator of clean
energy projects, today announces its unaudited interim results for
the period ended 30 September 2014. During the current year, the
Board has decided to change the presentation currency from the Euro
to US$, in order to make our investment model easier to compare
with our peers. The Board has also decided to change its financial
year end from the 31 March, to the 31 December, effective in
2014.
Financial Highlights
-- Operational capacity grew 45.6% from 491 MW in March 2014 to
715 MW to date
-- Generation increased 87.5% to 1,225 GWh, compared to previous
year
-- Reported revenue increased 125.6% to $82.7 million (2013:
$36.6 million)
-- EBITDA increased 129.1% to $74.2 million (2013: $32.3
million)
-- Adjusted(1) Profit after tax increased 107.9% to $28.7
million (2013: $13.8 million)
-- Property, plant, equipment and intangibles grew 46.5% to
$1,078.1 million (2013: $735.7 million)
-- Greenko Dutch BV has raised 8% - 5 year $550 million Bonds,
to reduce the cost of debt.
-- EIG loan of $125 million used to repay the Standard Chartered
investment.
-- Earnings per share (EPS) for H1- 2014 9.55c (2013:
5.54c).
Operational Highlights
-- Completion of acquisition of 70 MW Lanco Budhil hydropower
project in Himachal Pradesh taking hydro operating capacity to 235
MW
-- Completion of 154 MW of wind projects taking the operating
wind capacity to 402 MW
-- Approximately 590 MW of projects in construction, plus 1,350
MW in active development.
Adjusted(1) Profit after Tax is without considering the one time
debt restructuring cost of $5.1 million.
Commenting on the results, Anil Chalamalasetty, CEO and MD of
Greenko, said:
"Our portfolio approach continues to deliver strong results.
During the current financial year we have added 224 MW of
operational capacity. Our ongoing initiatives to reduce our cost of
debt, through our recent US$550 million Bond issue and the US$125
million loan from EIG in early October, should further enhance our
financial performance and afford us the flexibility to offer
greater shareholder returns. As the Indian energy market becomes
increasingly favourable towards hydro and wind power, we remain
very optimistic about the sustainability of our strongly supported
operational and financial performance."
For further information please visit www.greenkogroup.com or
call:
Greenko Group plc
+44 (0)20 7920
Anil Chalamalasetty 3150
Mahesh Kolli
+44 (0)20 7614
Arden Partners plc 5917
Richard Day
+44 (0)20 7920
Tavistock Communications 3150
Matt Ridsdale
Mike Bartlett
Niall Walsh
Report to Shareholders
Chairman's Statement
I am pleased to report Greenko's interim results for the six
months ended 30 September 2014. The Company has performed well
during the period and our robust operating cash flows and balance
sheet will allow us to achieve our target of having 1,000 MW of
generating assets in 2015. Operational project growth was
significant, with several new wind projects becoming operational in
the current year, plus some additional projects under advanced
stages of construction and which are scheduled to be ready for the
next wind season. We completed the Budhil 70 MW acquisition, and
our other hydro projects under construction continued to make good
progress and are expected to become operational in 2015 and 2016.
Including our on-going construction work, this resulted in over
$342.3 million of net assets being added to the balance sheet
during the period.
Generating assets grew 45.6% from 491 MW to 715 MW. We expect
this growth to accelerate over the next few quarters as we complete
the 590 MW of projects currently under construction, and we expect
to exceed our target of developing 1,000 MW of operating assets
during 2015. During the year to date we have delivered a further
154 MW of wind assets, by expanding and adding to the capacities at
our three existing large projects (Ratnagiri, Basavanabagewadi and
Balavenkatapuram) utilising the infrastructure created during the
initial development phases.
Clean energy is an important part of the Indian energy market
and should provide a significant portion of the Indian Government's
12th Plan target for new capacity. Clean energy also attracts
strong regulatory support and a favourable tariff structure.
Current supply of all forms of power in India falls well short of
demand, and this is expected to continue for many years. During the
last few months, we have seen some significant progress in more
visible bidding processes, together with more sustainable tariff
quotes.
Given the current coal shortage and fluctuation in international
fuel prices, conventional generating assets are struggling to
supply power to the grid, providing more impetus for growth within
the renewable energy segment in India. Greenko's diverse wind and
hydro portfolio, located across a number of states, can now
profitably produce power below the price of conventional generation
with some of states, such as Madhya Pradesh, giving long term
policy announcements for wind at a very attractive price, thus
encouraging investments from IPPs like Greenko. Following the
formation of a new Government with a clear majority and dynamic
leadership at the helm, India's ongoing energy policy is to provide
24/7 power for all. Due to the relatively short development cycle
for renewable energy projects, particularly wind, Greenko is well
positioned to respond to this policy and provide financially
attractive, sustainable long term returns to our shareholders.
Our strategically diversified portfolio investments model is
working well with good growth of 87.6% in generation from our
combined portfolio of assets, up from 653 GWh in 2013 to 1,225 GWh
in the first half of this year. Despite the late start of the
monsoon, our wind farms generated 525 GWh and our hydro assets
generated 532 GWh.
The company has made excellent progress on our wind and hydro
projects and we expect to see a continuing intensity in our level
of activity in the next 12 to 18 months as we add a further 590 MW
of wind and hydro projects currently under construction, and for
which most of the expenditure is already committed. Several
projects are nearing completion and we expect to exceed our target
of 1,000 MW in operation for the 2015 monsoon and wind season, with
a further balance of 300 MW completed for the 2016 season. We also
continue to assess a range of high quality hydro acquisition
opportunities, but only where we believe those assets can be
acquired at attractive prices.
The Company's profitable progress and strong underlying
performance has been achieved despite uncertainties from the
significant changes in the Indian power market being proposed by
the Indian government, and the continuing challenging economic
times in India. Generation output increased by 87.6% to 1,225GWh,
and revenues from this output increased by 125.6% to $82.7m. This
reflects higher volumes in both hydro and wind generation, with the
former being at relatively low pricing, but good margins, and
higher prices for the output from new wind generation.
A key focus in 2014 has been to restructure our borrowings in
order to reduce our borrowing costs. Significant progress has been
achieved through the issue of a $550 million 5 year Bond, payable
31(st) July 2019, which has been utilised to significantly reduce
our more expensive project finance debt. In addition, a new six
year loan of $125 million from EIG was used to repay the loans from
Standard Chartered Bank and also reduce project debt. There was a
one-time charge of $5.1m to arrange this restructuring but we
expect significant ongoing savings in the coming years. Our profit
after tax for the half year has improved by 107.9% before this
one-time charge to $28.7m, and by 70.5% after the charge.
Dividend
Having reached an operating capacity of 715 MW, the Board is
confident of reaching the target operating capacity of 1000 MW by
2015 as the balance targeted capacity is fully funded and is under
an advanced stage of construction. Given the increasingly
predictable nature of cash flows from these operating assets, the
Board proposes to consider the payment of a dividend with the
announcement of our year end results, and I look forward to
reporting further progress at that time.
Outlook
In an environment of ever increasing demand for power in India
and an emphasis on generation from clean energy sources, Greenko is
ideally positioned for strong and sustained growth. Over the next
fifteen months the shape and size of our operating portfolio will
transform, as the 590 MW of projects currently under construction
are completed. Despite the many challenges across the power sector,
and exchange rate volatility continuing to distort the accounting
reporting of our immediate financials, we are confident that the
quality of the underlying assets will deliver substantial value to
our shareholders.
The Company is well advanced in achieving significant critical
mass in our operating projects. Greenko is emerging as a stable and
leading participator in India's power generation sector and the
Board is confident that we are well positioned to continue our
growth through the reinvestment of our operating cash flows in new
renewable energy projects.
Keith Henry
Chairman
Executive Director's Statement
Introduction
I am delighted to present Greenko's un-audited financial results
for the six months ended 30 September 2014. We have delivered
another good period of profitable growth. The successful completion
of three wind farms producing an extra 154 MW, together with the 70
MW hydro Budhil acquisition, has established Greenko as a leading
renewable player in the Indian energy market. Successful fund
raisings during the year of an 8% 5 Year Bond of $550 million from
globally reputed institutional investors in the US, UK and Asia,
together with the recent $125 million loan from EIG Global to
replace Standard Chartered's earlier investment, should help us to
deliver our 2015 target of 1,000 MW with improved profitability.
Our total portfolio, including our pipeline of active developments,
represents over 2.5 GW of power generating assets. Our operational
portfolio has increased 45.6% to 715 MW since March, with another
590 MW under construction, and a further 1,350 MW in active
development. We have deployed $342 million of capital into power
assets since this period last year.
Financial Review
Reported revenue was $82.7 million (2013: $36.6 million) from
generation of 1,225 GWh (2013: 653 GWh). EBITDA, a key performance
indicator for Greenko, increased 129.1% to $74.2 million (2013:
$32.3 million) despite the late start of the monsoon. During the
current financial year, we have achieved considerable cost savings
by replacing the high cost Indian debt with 8% - 5 year US$ Bonds
of $550 million which will help in improved cash flow for organic
growth. This resulted in a one-time debt reorganisation expense of
$5.1 million. To help make like-for-like comparison of changes in
the operating business, we report adjusted figures in the
narrative, with the reorganisation of the debt charge netted
out.
Adjusted profit after tax increased 107.9% to $28.7 million
(2013: $13.8 million). $9.1 million (2013: $5.4 million) of
Greenko's profit after tax of $23.5 million (2013: $13.8 million)
was attributed to minority shareholders , mainly through the
preference share held by Global Environment Emerging Markets Fund
III (which invested in the Company at the Mauritius subsidiary
level in 2009) and the new investment from GIC of GBP100 million,
again invested in the Company through the Mauritius subsidiary
level as Exchangeable Shares, leaving $14.4 million (2013: $8.3
million) to shareholders of the company.
The Company's Plant, Property and Equipment and Intangible
Assets increased by 46.5% to $1,078.1 million (2013: $735.7
million), primarily due to a significant increase in construction
activity and the development of assets into operation. The funds
raised from GIC of GBP100 million during the last financial year
were deployed in various projects under implementation and the cash
(including deposits and money market funds) balance at the end of
the year was $122.2 million (2013: $58.8 million). Total borrowing
at the period end was $741.5 million (2013: $328.5 million).
Greenko had approximately $176 million of committed but undrawn
facilities in place.
During the period we have completed 8% - 5 year US Dollar Bonds
of $550 million to refinance the existing operating portfolio debt.
The Bond Issue, supported from a global investor base, was well
received in the market and is currently listed on the Singapore
Stock Exchange. The issuance of the INR denominated non-convertible
debentures by Greenko's entities in India has been completed.
Greenko's entities in India have not issued guarantees, nor created
any contingent liabilities, or offered any security for the senior
notes issued by Greenko Dutch BV. Accordingly the Company has been
advised it is in compliance with Schedule 5 of the Foreign Exchange
Management Regulations, 2000, (Transfer or Issue of Security by a
Person Outside India) and all other applicable extant Indian
exchange control regulations.
The Company has also received a loan of $125 million from EIG
Global, with a 5% cash coupon. EIG has an option to convert the
remaining part of the non-cash coupon of 6% into Equity of the
company at 240p per share, with the principal amount of $125
million being repayable in cash at the end of 6(th) year. We have
deployed this money effectively for all the projects under
construction and the optimised interest costs will be reflected in
the next financial year.
Change of Financial Year:
In line with our decision to change our reporting currency from
the Euro to the US$, thereby better enabling the Company to be
viewed on par with our global peer groups, the Board has also
decided to change our Financial Year (presently April to March) to
1 January to 31 December. Accordingly the Company will present its
current audited financial year results for the 9 month period,
ending 31 December 2014.
Operational and Development review
Greenko reports on its secured capacity in three categories:
operating assets, projects in-construction, and concessions under
active development. Together, these represent over 2.5 GW of
capacity, with 715 MW currently operational and 590 MW in active
construction. Behind this is a much larger pipeline of potential
development projects, which are not classified as 'active
development' until the key concessions, resource assessments and
agreements are in place.
Greenko's generating portfolio strategy is designed around asset
clusters that offer local economies of scale, as well as
diversification by geography, off-take and technology. Overall, the
Company has approximately 590 MW of projects in construction and a
further 1.35 GW under active development. Collectively this
includes just over 1,356 MW of wind power, with the remainder
primarily hydro power. Following the completion of an additional
capacity of 154 MW in our existing three wind farms of Ratnagiri,
Basavanabagewadi and Balaventaktapuram, taking our operational wind
capacity to 402 MW, Greenko expects to complete wind projects
currently under construction representing almost 402 MW by 2015. We
remain confident that with capital having already been deployed for
over 1,000 MW, we should be operational in 2015 with a 1 GW
platform.
Wind
The Company's wind strategy is based on carrying out extensive
site analysis, and is aimed at delivering a reliable long term
generation profile using validated wind data gathered over the long
term, the latest proven technology and our in-house engineering and
management capabilities to ensure the projects meet the required
economic return hurdles.
In line with our broader strategy to develop utility scale wind
farms, we commissioned three wind farm projects: Ratnagiri (101.6
MW), Rayala (240 MW) and Basvanbagewadi (180 MW) during the last
year 2013-14. Following the first phase of these projects and
taking advantage of the existing infrastructure to achieve a more
rapid construction schedule, a further 154 MW of additional wind
assets were successfully installed at these sites during the
current period, completing a total wind capacity of 402 MW to date.
We have commenced construction on another three wind farms: Tanot
(120 MW), Vyshali (120 MW) and Animala (60 MW), and firm orders
have been placed with the vendors to execute these projects to be
operational during 2015.
Hydro Projects
Greenko currently has six hydro projects under construction,
with a total capacity of 188.6 MW. The largest of these is the 96
MW Dikchu project in Sikkim, which is approximately 80% complete
and is on schedule to commence commercial operations at the start
of the 2015 hydro generation season. The other five projects are at
various stages of construction, with commissioning schedules
falling between late 2015 and early 2016.
Thermal Assets
The 36.8 MW liquid fuel plant operates under a quasi-tolling
structure. The plant was not called to generate during the period,
reducing its reported revenue but leaving absolute EBITDA unchanged
and in-line with expectations.
The Company's 41.5 MW of biomass assets continue to operate
below our long-term expectations and output was lower than the
previous period. We are continuing our efforts to sell two of the
biomass plants for which we have entered into a MOU with a third
party.
Business Development
With a significant portion of our existing portfolio having
secured long term state PPAs, we are working towards merchant
tariffs for our new projects being commissioned in order to obtain
improved tariffs. We have been successful in securing good long
term merchant tariff PPAs for our Matrix, Mangalore and
Basavanabagewadi wind farms, and our AMR and Jasper hydro assets.
Our strategy is to optimise our revenues through a balanced mix of
merchant tariff PPAs and state PPAs.
The Company's growing infrastructure, brand and reputation
within the industry provide us with excellent access to acquisition
opportunities. Greenko is continuing to pursue a twin-track
strategy of developing new concessions while at the same time
assessing potential acquisitions, particularly in hydro where we
are seeing real opportunities to scale-up our business. The Greenko
team is currently analysing projects that range from those already
in construction to those that have passed their initial development
hurdles.
As always, we remain highly selective and take forward only the
most attractive opportunities. Our growth plans are unchanged and
we continue to assume a preference for new concessions,
particularly in the wind sector where our experience and proven
track record allows us to rapidly develop new opportunities
utilising the latest turbine technologies.
Anil Chalamalasetty
CEO and Managing Director
Interim condensed consolidated statement of financial
position
All amounts in USD unless otherwise stated
30 September 30 September 31 March
2014 2013 2014
(Un-audited) (Un-audited) (Audited)
-------------- -------------- --------------
Assets
Non-current assets
Intangible assets 148,821,165 141,902,572 146,605,275
Property, plant and equipment 929,978,358 593,878,729 757,892,746
Bank deposits 24,850,234 3,360,561 14,354,681
Trade and other receivables 6,182,423 7,282,406 7,321,355
Other non-current financial
assets 10,805,141 - 7,445,067
-------------- -------------- --------------
1,120,637,321 746,424,268 933,619,124
-------------- -------------- --------------
Current assets
Inventories 11,437,209 9,503,913 9,391,530
Trade and other receivables 100,407,156 59,979,876 66,088,210
Available-for-sale financial
assets 103,468 62,193 73,210
Current income tax assets 911,353 - 542,838
Bank deposits 27,665,860 12,091,662 4,904,746
Cash and cash equivalents 69,617,227 43,284,773 44,322,712
-------------- -------------- --------------
210,142,273 124,922,417 125,323,246
-------------- -------------- --------------
Assets of disposal group classified
as held for sale 14,010,635 - 15,425,146
-------------- -------------- --------------
Total assets 1,344,790,229 871,346,685 1,074,367,516
-------------- -------------- --------------
Equity
Ordinary shares 1,078,993 1,045,976 1,045,976
Share premium 288,169,213 280,494,895 280,494,895
Share based payment reserve 490,959 246,974 327,618
Currency translation reserve (98,412,005) (91,319,420) (78,584,734)
Revaluation reserve - 17,453 17,351
Other reserves including capital
subsidy 53,506,977 53,509,777 53,509,263
Option reserve (19,985,945) (19,985,945) (19,985,945)
Retained earnings 55,986,401 41,157,648 41,561,091
-------------- -------------- --------------
Equity attributable to owners
of the Company 280,834,593 265,167,358 278,385,515
Non - controlling interests 181,671,391 170,516,422 175,116,579
-------------- -------------- --------------
Total equity 462,505,984 435,683,780 453,502,094
-------------- -------------- --------------
Liabilities
Non-current liabilities
Retirement benefit obligations 524,935 401,523 488,875
Borrowings 641,698,762 307,141,900 382,211,439
Other Financial Liability 36,570,181 32,312,754 36,301,770
Trade and other payables 3,382,316 2,458,184 3,433,520
Deferred income tax liabilities 49,611,821 44,346,452 46,767,436
731,788,015 386,660,813 469,203,040
-------------- -------------- --------------
Current Liabilities
Trade and other payables 53,734,393 26,908,758 45,468,436
Current tax liability 801,699 693,245 3,414,001
Borrowings 92,903,907 21,400,089 99,195,874
-------------- -------------- --------------
147,439,999 49,002,092 148,078,311
-------------- -------------- --------------
Liabilities of disposal group
classified as held for sale 3,056,231 - 3,584,071
-------------- -------------- --------------
Total liabilities 882,284,245 435,662,905 620,865,422
-------------- -------------- --------------
Total equity and liabilities 1,344,790,229 871,346,685 1,074,367,516
-------------- -------------- --------------
Interim condensed consolidated income statement
Six month Six month Year ended
period ended period ended
30 September 30 September 31 March
2014 2013 2014
(Un-audited) (Un-audited) (Audited)
--------------- --------------- -------------
Revenue 82,724,210 36,664,829 70,992,192
Other operating income 52,389 104,655 359,299
Cost of material and power generation
expenses (4,943,904) (2,546,744) (7,685,925)
Employee benefits expense (2,954,548) (2,291,268) (5,310,489)
Other operating expenses (3,767,837) (2,563,494) (6,406,194)
Excess of group's interest in
the fair value of acquiree's
assets and liabilities over
cost 3,136,053 2,968,303 2,968,303
--------------- --------------- -------------
Earnings before interest, taxes,
depreciation, and amortization 74,246,363 32,336,281 54,917,186
Depreciation and amortization (14,138,799) (7,762,490) (18,205,665)
Employee share based payments (173,707) (77,668) (158,312)
--------------- --------------- -------------
Operating profit 59,933,857 24,496,123 36,553,209
Finance income 1,191,574 545,677 6,360,911
Finance cost (27,113,925) (9,213,737) (25,148,389)
--------------- --------------- -------------
Finance Costs - net (25,922,351) (8,668,060) (18,787,478)
--------------- --------------- -------------
Loan restructuring costs (5,178,122) - -
--------------- --------------- -------------
Profit before income tax 28,833,384 15,828,063 17,765,731
Income tax expense (5,244,436) (1,995,705) (5,611,834)
--------------- --------------- -------------
Profit for the period/year 23,588,948 13,832,358 12,153,897
--------------- --------------- -------------
Attributable to:
Equity holders of the Company 14,425,310 8,340,309 8,743,129
Non - controlling interests 9,163,638 5,492,049 3,410,768
--------------- --------------- -------------
23,588,948 13,832,358 12,153,897
--------------- --------------- -------------
Earnings per share for profit
attributable to the equity holders
of the Company during the period/year
Basic (in cents) 9.55 5.54 5.80
Diluted (in cents) 8.66 5.29 5.45
Interim condensed consolidated statement of comprehensive
income
Six month Six month Year ended
period ended period ended
30 September 30 September 31 March
2014 2013 2014
(Un-audited) (Un-audited) (Audited)
--------------- --------------- -------------
Profit for the period/year 23,588,948 13,832,358 12,153,897
Other comprehensive income
Items that will be reclassified
subsequently to Profit or loss
Unrealized gains on available-for-sale
financial assets (2,286) (1,326) (1,840)
Exchange differences on translating
foreign operations (22,453,448) (67,000,986) (47,584,340)
--------------- --------------- -------------
Total other comprehensive income (22,455,734) (67,002,312) (47,586,180)
--------------- --------------- -------------
Total comprehensive income/(loss) 1,133,214 (53,169,954) (35,432,283)
--------------- --------------- -------------
Total comprehensive income/(loss)
attributable to:
Equity holders of the Company (5,404,246) (38,139,156) (25,002,163)
Non - controlling interests 6,537,460 (15,030,798) (10,430,120)
--------------- --------------- -------------
1,133,214 (53,169,954) (35,432,283)
--------------- --------------- -------------
Interim condensed consolidated statement of changes in equity
(Un-audited)
Total equity
attributable
Share based Currency to equity
Ordina-ry Share payment Revaluation translation Other Option Retained holders of Non-controlling
shares premium reserve reserve reserve reserves reserve earnings the Company interests Total equity
---------- ------------ ------------ ------------ ------------- ----------- ------------- ----------- ------------- ---------------- -------------
At 1 April 2014 1,045,976 280,494,895 327,618 17,351 (78,584,734) 53,509,263 (19,985,945) 41,561,091 278,385,515 175,116,579 453,502,094
Transfer from
revaluation
reserve to
retained earnings - - - (17,351) - - - - (17,351) 17,351 -
Equity issue during
the period 33,017 7,674,318 (7,674,318) - - - - - 33,017 - 33,017
Value of employee
services - - 7,837,659 - - - - - 7,837,659 - 7,837,659
---------- ------------ ------------ ------------ ------------- ----------- ------------- ----------- ------------- ---------------- -------------
Transaction with
owners 33,017 7,674,318 163,341 (17,351) - - - - 7,853,325 17,351 7,870,676
---------- ------------ ------------ ------------ ------------- ----------- ------------- ----------- ------------- ---------------- -------------
Profit for the
period - - - - - - - 14,425,310 14,425,310 9,163,638 23,588,948
Other comprehensive
income
Unrealised loss on
available-for-sale
financial assets - - - - - (2,286) - - (2,286) - (2,286)
Exchange
differences on
translating
foreign operations - - - - (19,827,271) - - - (19,827,271) (2,626,177) (22,453,448)
---------- ------------ ------------ ------------ ------------- ----------- ------------- ----------- ------------- ---------------- -------------
Total comprehensive
income for the
period - - - - (19,827,271) (2,286) - 14,425,310 (5,404,247) 6,537,461 1,133,214
---------- ------------ ------------ ------------ ------------- ----------- ------------- ----------- ------------- ---------------- -------------
At 30 September
2014 1,078,993 288,169,213 490,959 - (98,412,005) 53,506,977 (19,985,945) 55,986,401 280,834,593 181,671,391 462,505,984
---------- ------------ ------------ ------------ ------------- ----------- ------------- ----------- ------------- ---------------- -------------
Interim condensed consolidated statement of changes in equity
(Un-audited)
Total equity
attributable
Share to equity
based Currency holders
Ordinary Share payment Revaluation translation Other Option Retained of the Non-controlling
shares premium reserve reserve reserve reserves reserve earnings Company interests Total equity
--------- ----------- ------- ----------- ------------ ----------- ------------ ----------- ------------ --------------- ------------
At 1 April 2013 1,045,976 280,494,895 169,306 22,759 (49,771,366) (4,888,603) (19,985,945) 39,889,688 246,976,710 93,768,845 340,745,555
Transfer from
revaluation
reserve to
retained
earnings - - - (5,306) - - - 32,518 27,212 (27,212) -
Sale of interest
in subsidiaries - - - - 4,930,085 58,399,706 - (7,104,867) 56,224,924 91,805,587 148,030,511
Value of employee
services - - 77,668 - - - - - 77,668 - 77,668
Transactions with
Owners - - 77,668 (5,306) 4,930,085 58,399,706 - (7,072,349) 56,329,804 91,778,375 148,108,179
--------- ----------- ------- ----------- ------------ ----------- ------------ ----------- ------------ --------------- ------------
Profit for the
period - - - - - - - 8,340,309 8,340,309 5,492,049 13,832,358
Other comprehensive
income
Unrealised gain
on
available-for-sale
financial assets - - - - - (1,326) - - (1,326) - (1,326)
Currency
translation
reserve - - - - (46,478,139) - - - (46,478,139) (20,522,847) (67,000,986)
Total comprehensive
income for the
period - - - - (46,478,139) (1,326) - 8,340,309 (38,139,156) (15,030,798) (53,169,954)
--------- ----------- ------- ----------- ------------ ----------- ------------ ----------- ------------ --------------- ------------
At 30 September
2013 1,045,976 280,494,895 246,974 17,453 (91,319,420) 53,509,777 (19,985,945) 41,157,648 265,167,358 170,516,422 435,683,780
--------- ----------- ------- ----------- ------------ ----------- ------------ ----------- ------------ --------------- ------------
Interim condensed consolidated statement of changes in equity
(Audited)
Share Total equity
based Currency attributable to
Ordinary Share payment Revaluation translation Other Option Retained equity holders of Non-controlling
shares premium reserve reserve reserve reserves reserve earnings the Company interests Total equity
---------- ------------ -------- ------------ ------------- -------------- ------------- -------------- ------------------- ---------------- ---------------
At 1 April 2013 1,045,976 280,494,895 169,306 22,759 (49,771,366) (4,888,603) (19,985,945) 39,889,688 246,976,710 93,768,845 340,745,555
Transfer from
revaluation
reserve to
retained earnings - - - (5,408) - - - 33,141 27,733 (27,733) -
Sale of interest in
subsidiaries - - - - 4,930,085 58,399,706 - (7,104,867) 56,224,924 91,805,587 148,030,511
Value of employee
services - - 158,312 - - - - - 158,312 - 158,312
Government grants
---------- ------------ -------- ------------ ------------- -------------- ------------- -------------- ------------------- ---------------- ---------------
Transaction with
owners - - 158,312 (5,408) 4,930,085 58,399,706 - (7,071,726) 56,410,969 91,777,854 148,188,823
---------- ------------ -------- ------------ ------------- -------------- ------------- -------------- ------------------- ---------------- ---------------
Profit for the year - - - - - - - 8,743,129 8,743,129 3,410,768 12,153,897
Other comprehensive
income
Unrealised loss on
available-for-sale
financial assets - - - - - (1,840) - - (1,840) - (1,840)
Exchange
differences on
translating
foreign operations - - - - (33,743,453) - - - (33,743,453) (13,840,888) (47,584,341)
---------- ------------ -------- ------------ ------------- -------------- ------------- -------------- ------------------- ---------------- ---------------
Total comprehensive
income for the
year - - - - (33,743,453) (1,840) - 8,743,129 (25,002,164) (10,430,120) (35,432,284)
At 31 March 2014 1,045,976 280,494,895 327,618 17,351 (78,584,734) 53,509,263 (19,985,945) 41,561,091 278,385,515 175,116,579 453,502,094
---------- ------------ -------- ------------ ------------- -------------- ------------- -------------- ------------------- ---------------- ---------------
Interim condensed consolidated statement of cash flow
Six month Six month Year ended
ended ended 31March
2014
30 September 30 September (Audited)
2014 2013
(Un-audited) (Un-audited)
--------------- --------------- --------------
A. Cash flows from operating activities
Profit before income tax 28,833,384 15,828,063 17,765,731
Adjustments for
Depreciation and amortization 14,138,799 7,762,490 18,205,665
(Profit)/loss on sale of assets - (41,506) (26,486)
Value of employee services 173,707 77,668 158,312
Finance income (1,191,574) (545,677) (6,360,911)
Finance cost 27,113,925 9,213,737 25,148,389
Loan restructuring expenses 5,178,122 - -
Excess of group's interest in the
fair value of acquiree's assets
and liabilities over cost (3,136,053) (2,968,303) (2,968,303)
Changes in working capital
Inventories (2,432,044) (1,420,822) (1,684,897)
Trade and other receivables (36,993,708) (9,027,348) (28,191,070)
Trade and other payables (20,608,746) (4,191,026) 19,089,751
--------------- --------------- --------------
Cash generated from operations 11,075,812 14,687,276 41,136,181
Income taxes paid (3,965,487) (1,076,104) (1,505,210)
--------------- --------------- --------------
Net cash generated from operating
activities 7,110,325 13,611,172 39,630,971
--------------- --------------- --------------
B. Cash flows from investing activities
Purchase of property, plant and
equipment and capital expenditure (81,629,922) (148,074,264) (284,627,853)
Proceeds from sale of assets - 50,738 56,939
Acquisition of business, net of
cash acquired (17,581,087) (6,973,950) (7,107,595)
Acquisition of licence holding companies - - (125,671)
Investment in mutual funds (16,614) - -
Advance for purchase of equity - (1,700,395) (2,724,716)
Payment for acquisitions relating
to earlier years (194,103) (11,523,294) (11,793,072)
Bank deposits (38,341,285) (2,392,469) (725,099)
Interest received 664,846 526,211 1,601,852
Dividends received - 340 971
--------------- --------------- --------------
Net cash used in investing activities (137,098,165) (170,087,083) (305,444,244)
--------------- --------------- --------------
C. Cash flows from financing activities
Proceeds from issue of shares 33,017 - -
Proceeds from non controlling interests
(Net of Costs) - 149,265,472 148,267,699
Proceeds from borrowings 647,567,506 55,162,384 220,138,338
Repayment of borrowings (452,755,993) (11,271,188) (35,497,187)
Interest paid (38,518,690) (16,911,601) (44,404,186)
--------------- --------------- --------------
Net cash from financing activities 156,325,840 176,245,067 288,504,664
--------------- --------------- --------------
Net increase/(decrease) in cash
and cash equivalents 26,338,000 19,769,156 22,691,391
Cash and cash equivalents at the
beginning of the period/year 44,322,712 30,611,218 30,611,218
Exchange losses on cash and cash
equivalents (1,043,485) (7,095,601) (8,979,897)
--------------- --------------- --------------
Cash and cash equivalents at the
end of the period/year 69,617,227 43,284,773 44,322,712
--------------- --------------- --------------
1. General information
Greenko Group plc ("the Company" or "the Parent") is a company
domiciled in the Isle of Man and registered as a company limited by
shares under the provisions of Part XI of the Isle of Man Companies
Act 2006. The registered office of the Company is at 4th floor, 14
Athol Street, Douglas, Isle of Man, IM1 1JA. The Company is listed
on the Alternative Investment Market ("AIM") of the London Stock
Exchange.
The Company together with its subsidiaries ("the Group") is in
the business of owning and operating clean energy facilities in
India. All the energy generated from these plants is sold to state
utilities and other electricity transmission and trading companies
in India through long-term power purchase agreements ("PPA"). The
Group holds licence to trade up to 100 million units of electricity
per annum in the whole of India except the state of Jammu and
Kashmir. However, the Group is yet to commence trading in
electricity. The Group is also a part of the Clean Development
Mechanism ("CDM") process and generates and sells Certified
Emission Reductions ("CER") and Voluntary Emission Reductions
("VER") and Renewable Energy Certificates ("REC").
These financial statements are the un-audited interim condensed
consolidated financial statements ("Interim Financial Statements")
for the six-month period ended 30 September 2014 (hereafter 'the
interim period'). The interim financial statements have been
approved for issue by the Board of Directors on 02 December,
2014.
2. Basis of preparation
The condensed interim consolidated financial statements ("the
interim financial statements") are for the six months ended 30
September 2014 and are presented in US Dollars. The interim
financial statements have been prepared in accordance with
International Accounting Standard 34 (IAS 34) Interim Financial
Reporting and do not include all of the information required in
annual financial statements in accordance with International
Financial Reporting Standards and should be read in conjunction
with the consolidated financial statements of the Group for the
year ended 31 March 2014.
3. Change in presentation currency
Following a period of sustained growth, the Group's investments
and borrowings are moving more and more towards US Dollars,
especially with USD 550 million bonds having raised and EIG loan of
USD 125 million, the Group's exposure to global investor base has
significantly increased. Hence, the Group has decided to present
the financial results from 1 April 2014, from Euro to US
Dollars.
A change in presentation currency is a change in accounting
policy which is accounted for retrospectively. Statutory financial
information included in the Group's Annual Report and Accounts for
the year ended 31 March 2014 previously reported in Euros has been
restated into US Dollars.
4. Significant accounting policies
The interim financial statements have been prepared in
accordance with the accounting policies adopted in the Group's last
annual financial statements for the year ended 31 March 2014,
except for new requirements of 'Consolidated Financial Statements'
(IFRS 10). IFRS 10 supersedes IAS 27 'Consolidated and Separate
Financial Statements' (IAS 27) and SIC 12 'Consolidation-Special
Purpose Entities'. These new requirements have the potential to
affect which of the Group's investees are considered to be
subsidiaries and therefore change the scope of consolidation. The
requirements on consolidation procedures, accounting for changes in
non-controlling interests and accounting for loss of control of a
subsidiary are unchanged. Management has reviewed its control
assessments in accordance with IFRS 10 and has concluded that there
is no effect on the classification (as subsidiaries or otherwise)
of any of the Group's investees held during the period or
comparative periods covered by these financial statements.
The presentation of the Interim Financial Statements is
consistent with the audited Annual Financial Statements, except
disclosure of Earnings before interest, taxes, depreciation, and
amortization. Where necessary, comparative information has been
reclassified or expanded from the previously reported Interim
Financial Statements to take into account any presentation changes
made in the Annual Financial Statements or in these Interim
Financial Statements.
5. Estimates
The preparation of the Interim Financial Statements requires
management to make estimates and assumptions that affect the
reported amounts of revenues, expenses, assets, liabilities and the
disclosure of contingent liabilities at the date of the Interim
Financial Statements. If in the future such estimates and
assumptions, which are based on management's best judgments at the
date of the Interim Financial Statements, deviate from the actual
circumstances, the original estimates and assumptions will be
modified as appropriate in the period in which the circumstances
change.
6. Earnings per share
Both the basic and diluted earnings per share have been
calculated using the profit attributable to the shareholders of the
parent company as the numerator, i.e. no adjustments to profits
were necessary during the six months period ended 30 September
2014, 2013 and year ended 31 March, 2014.
The weighted average number of shares for the purposes of the
calculation of diluted earnings per share can be reconciled to the
weighted average number of ordinary shares used in the calculation
of basic earnings per share as follows:
30 September 30 September 31 March
2014 2013 2014
Weighted average number of ordinary
shares used in basic earnings
per share 151,023,901 150,661,606 150,661,606
Shares deemed to be issued for
no consideration in respect of
share based payments 3,249,902 149,994 149,995
Shares deemed to be issued for
no consideration to preference
shareholders of subsidiary company 12,332,766 6,916,185 9,671,795
Weighted average number of ordinary
shares used in diluted earnings
per share 166,606,569 157,727,785 160,483,396
------------- ------------- ------------
7. During the period, the Company has granted 5,100,000 new
ordinary shares of EUR 0.005 each under its Long Term incentive
Plan to ACMK Enterprises Limited ("ACMK"), a company wholly owned
by the executive directors, Anil Kumar Chalamalasetty and Mahesh
Kolli, for reaching the milestone of 500 MW operational capacity
These shares have been vested and exercised immediately at a
nominal price of EUR 0.005 per share.
The Company has also granted a further performance related award
to ACMK 3,100,000 new ordinary shares exercisable at a nominal
price of EUR 0.005 per share which may vest and becomes exercisable
over the period 2016 to 2018 subject to achieving certain agreed
key performance indicators.
8. During the period, Greenko Dutch B.V. a subsidiary of the
Company has issued 5 Years 8% Senior Notes due on 31 July 2019 in
an aggregate principal amount of US$ 550 million. The net proceeds
of the offering were invested primarily through FPI regime in
Non-Convertible Debentures of Indian SPVs. Greenko Dutch will
review from time to time the currency exposure of US dollar debt
vis-à-vis exposure to Indian operations, and take hedging
accordingly. The Board will review periodically hedging policy as
part of risk management.
9. Intangible assets
Electricity
Licences PPAs Goodwill Total
------------- ------------ ------------ -------------
Cost
At 1 April 2014 122,147,697 14,704,093 20,216,519 157,068,309
Acquisition through business
combination 5,832,361 1,666,389 - 7,498,750
Exchange differences (3,145,184) (403,658) (495,487) (4,044,329)
At 30 September 2014 124,834,874 15,966,824 19,721,032 160,522,730
------------- ------------ ------------ -------------
At 1 April 2013 117,794,513 16,606,221 23,131,014 157,531,748
Acquisition through business
combination 15,553,677 - - 15,553,677
Exchange differences (16,754,117) (2,235,147) (3,113,366) (22,102,630)
At 30 September 2013 116,594,073 14,371,074 20,017,648 150,982,795
------------- ------------ ------------ -------------
At 1 April 2013 117,794,513 16,606,221 23,131,014 157,531,748
Additions 497,532 - - 497,532
Acquisition through business
combination 15,553,677 15,553,677
Asset classified as held for
sale (146,423) (307,820) (693,763) (1,148,006)
Exchange differences (11,551,602) (1,594,308) (2,220,732) (15,366,642)
At 31 March 2014 122,147,697 14,704,093 20,216,519 157,068,309
------------- ------------ ------------ -------------
Accumulated amortization and
impairment
At 1 April 2014 2,088,965 8,374,069 - 10,463,034
Charge for the period 591,100 939,139 - 1,530,239
Exchange differences (64,822) (226,886) - (291,708)
At 30 September 2014 2,615,243 9,086,322 - 11,701,565
------------- ------------ ------------ -------------
At 1 April 2013 1,604,492 6,631,109 - 8,235,601
Charge for the period 309,839 1,764,533 - 2,074,372
Exchange differences (234,073) (995,677) - (1,229,750)
At 30 September 2013 1,680,258 7,399,965 - 9,080,223
------------- ------------ ------------ -------------
At 1 April 2013 1,604,492 6,631,109 - 8,235,601
Charge for the year 691,434 2,620,616 689,177 4,001,227
Asset classified as held for
sale (57,521) (258,468) (693,763) (1,009,752)
Exchange differences (149,440) (619,188) 4,586 (764,042)
At 31 March 2014 2,088,965 8,374,069 - 10,463,034
------------- ------------ ------------ -------------
Net book value
At 30 September 2014 122,219,631 6,880,502 19,721,032 148,821,165
At 30 September 2013 114,913,815 6,971,109 20,017,648 141,902,572
At 31 March 2014 120,058,732 6,330,024 20,216,519 146,605,275
------------- ------------ ------------ -------------
10. Property, plant and equipment
Furniture,
Plant and fixtures & Capital
Land Buildings machinery equipment Vehicles work-in-progress Total
----------- ------------- ------------- ----------- ---------- ----------------- --------------
Cost
At 1 April 2014 10,720,559 120,317,789 361,919,263 2,675,889 1,652,561 292,185,978 789,472,039
Additions 4,887,854 389,693 141,208,210 236,432 54,826 93,934,407 240,711,422
Acquisition through
business combination 148,292 9,533,059 97,893,791 36,737 22,165 - 107,634,044
Capitalisation (Disposals) - - - - - (139,150,146) (139,150,146)
Exchange differences (379,622) (3,209,517) (14,670,773) (17,684) (96,793) (7,212,312) (25,586,701)
At 30 September 2014 15,377,083 127,031,024 586,350,491 2,931,374 1,632,759 239,757,927 973,080,658
----------- ------------- ------------- ----------- ---------- ----------------- --------------
At 1 April 2013 4,215,306 128,192,061 112,215,627 1,882,205 1,434,144 288,030,975 535,970,318
Additions 13,363 57,462 371,093 329,038 66,911 151,185,737 152,023,604
Acquisition through
business combination - - - 393 - 1,601,235 1,601,628
Capitalisation/(Disposals) 3,819,136 6,754,008 77,913,687 (429) - (88,496,063) (9,661)
Exchange differences (786,395) (17,526,194) (15,823,504) (270,273) (195,533) (34,600,063) (69,201,962)
At 30 September 2013 7,261,410 117,477,337 174,676,903 1,940,934 1,305,522 317,721,821 620,383,927
At 1 April 2013 4,215,306 128,192,061 112,215,627 1,882,205 1,434,144 288,030,975 535,970,318
Additions 6,910,075 5,491,155 258,714,056 1,030,245 385,574 281,728,780 554,259,885
Acquisition through
business combination - - - 378 - 1,538,430 1,538,808
Capitalisation/(Disposals) (8,649) - - - (40,248) (256,691,954) (256,740,851)
Asset classified as held
for sale (339,886) (1,453,408) (11,022,756) (116,445) (7,796) (3,331) (12,943,622)
Exchange differences (56,287) (11,912,019) 2,012,336 (120,494) (119,113) (22,416,922) (32,612,499)
At 31 March 2014 10,720,559 120,317,789 361,919,263 2,675,889 1,652,561 292,185,978 789,472,039
----------- ------------- ------------- ----------- ---------- ----------------- --------------
Land Buildings Plant and Furniture, Vehicles Capital Total
machinery fixtures & work-in-progress
equipment
----------- ------------ -------------- -------------- ---------- ----------------- ------------
Accumulated
depreciation
and
impairment
At 31 March
2014 - 10,508,742 19,748,736 780,337 541,478 - 31,579,293
Depreciation
for the
period - 2,056,692 10,107,492 296,030 148,346 - 12,608,560
Exchange
Difference - (304,140) (728,134) (1,610) (51,669) - (1,085,553)
At 30
September
2014 - 12,261,294 29,128,094 1,074,757 638,155 - 43,102,300
----------- ------------ -------------- -------------- ---------- ----------------- ------------
At 1 April
2013 - 7,666,182 15,747,752 545,017 444,868 - 24,403,819
Charge for
the period - 1,949,937 3,547,091 118,121 72,969 - 5,688,118
Exchange
differences - (1,137,976) (2,305,366) (79,702) (63,695) - (3,586,739)
At 30
September
2013 - 8,478,143 16,989,477 583,436 454,142 - 26,505,198
----------- ------------ -------------- -------------- ---------- ----------------- ------------
At 1 April
2013 - 7,666,182 15,747,752 545,017 444,868 - 24,403,819
Charge for
the year - 3,845,239 9,865,893 337,488 155,818 - 14,204,438
Disposals - - - - 13,357 - 13,357
Asset
classified
as held for
sale - (296,391) (4,497,875) (65,018) (6,593) - (4,865,877)
Exchange
differences - (706,288) (1,367,034) (37,150) (65,972) - (2,176,444)
At 31 March
2014 - 10,508,742 19,748,736 780,337 541,478 - 31,579,293
----------- ------------ -------------- -------------- ---------- ----------------- ------------
Net book
value
At 30
September
2014 15,377,083 114,769,730 557,222,397 1,856,617 994,604 239,757,927 929,978,358
At 30
September
2013 7,261,410 108,999,194 157,687,426 1,357,498 851,380 317,721,821 593,878,729
At 31 March
2014 10,720,559 109,809,047 342,170,527 1,895,552 1,111,083 292,185,978 757,892,746
----------- ------------ -------------- -------------- ---------- ----------------- ------------
11. Commitments
Capital expenditure contracted for at 30 September 2014 but not
yet incurred aggregated to $131,022,741 (31 March 2014: $
98,205,621).
12. Business combinations
During the period ended 30 September 2014, the Group acquired
the following Company to enhance the generating capacity of the
Group from clean energy assets. Details of acquisition is set out
below:
Effective Date of acquisition Percentage acquired
------------------------------- --------------------
Lanco Budhil Hydro Power Private Limited (LBHPPL) 15 June 2014 100.00%
LBHPPL hold license to operate 70MW of hydel project in the
state of Himachal Pradesh, India. The excess of the Group's
interest in the fair value of an acquiree's assets and liabilities
over cost resulting from the time value which the Group gained, the
value in readiness for implementation and the negotiating skills of
the Group.
Details of net assets acquired are as follows:
LBHPPL
------------
Purchase consideration:
- Cash paid 17,785,369
- Amount payable 19,370,334
------------
Total Purchase consideration 37,155,703
Fair value of net asset acquired 40,291,756
------------
Excess of Group's interest in fair value of acquirees'
assets and liabilities (3,136,053)
------------
Fair value of the acquiree's assets and liabilities arising from
the acquisition are as follows:
LBHPPL
-------------
Property, plant and equipment 107,634,044
Inventories 111,441
Licence 7,498,750
Trade and other receivables 825,638
Cash and cash equivalents 204,282
Trade and other payables (15,432,310)
Deferred income tax assets 84,716
-------------
100,926,561
-------------
Borrowings 60,634,805
-------------
Net assets 40,291,756
Purchase consideration settled in cash 17,785,369
Cash and cash equivalents (204,282)
-------------
Cash outflow on acquisition 17,581,087
-------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DXLFBZLFLFBL
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