Gayatri Projects Limited · NSE:GAYAPROJ
Gayatri Projects — Q1 FY2020 Earnings Presentation
37 slides from Gayatri Projects's earnings presentation, Aug 17, 2019
Slide 1: Cover letter to stock exchanges
(ù Date : 17th August, 2O1g G^y TRt To, To, The General Manager, The Secretary, The DepaÊment of Corporate Relations, National Stock Exchange of India Ltd, B_:rnUay Stock Exchange Limited, Ilg 25tn Floor, phiroz Jeejeebhãy towers, sth Ftoor, Exchange pl{za, Plot No,C/1, G Blocþ Dalal Street, Mumbai-
Slide 2: Gayatri Projects Limited Earnings Presentation Q1FY2020
Gayatri Projects Limited Earnings Presentation Q1FY2020
Slide 3: Disclaimer
Disclaimer The material that follows is a Presentation of general background information about the Company’s activities as at the date of the Presentation. It is information given in summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accura
Slide 4: Agenda
Agenda 1. Gayatri Projects – An Introduction Slide No. 4 2. Q1 FY2020 Highlights Slide No. 5 - 6 3. Top Work Orders – Status update Slide No. 7 - 8 4. FY 2020 Key Priorities Slide No. 9 - 11 5. Order Book Diversification Slide No. 12 6. Key Investment Highlights Slide No. 13 7. Digital Project Manag
Slide 5: GPL: Among India's Asset-Light EPC Companies
GPL: Among India’s Asset – Light EPC Companies One of India’s leading construction and infrastructure companies with dedicated focus on asset- light EPC work Business Segments 5 decades of experience in execution of major civil works, diversified across geographies & infrastructure segments o Pa
Slide 6: Q1FY2020 – Strong Operating Performance
Q1FY2020 – Strong Operating Performance Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin Key Highlights 9,841 • Revenue growth of 20% led by strong execution in road 17.2% 15.5% 8,228 projects; in line with our full year guidance 1,418 1,527 • EBITDA Margin slightly lower due to weaker execution in
Slide 7: Q1 FY2020 Snapshot
Q1 FY2020 Snapshot INR Mn Q1FY20 Q1FY19 YoY(%) Q4FY19 QoQ(%) Revenue 9,841 8,228 20% 11,511 -15% Expenses 8,313 6,811 22% 9,876 -16% EBITDA 1,528 1,417 8% 1,635 -7% EBITDA Margin 15.5% 17.2% 14.2% Depreciation 192 160 20% 168 14% Finance Cost 643 626 3% 526 22% Other Income 16 3 16 PBT 708 634 12% 9
Slide 8: Top Work Orders – Status Update
Top Work Orders – Status Update INR Crores Expected Balance work as Contract Value Mobilized on Revenue Completion of Project Name Location on 01.07.2019 (INR Cr) Site Booking Start Project End of Q (INR Cr) & Year Purvanchal Expressway Package 1 Eastern UP 1,483 1,372 Yes Q3 19 Q3 22 Purvanchal Exp
Slide 9: Top Work Orders – Status Update
Top Work Orders – Status Update INR Crores Expected Balance work as Contract Value Mobilized on Revenue Completion of Project Name Location on 01.07.2019 (INR Cr) Site Booking Start Project End of Q (INR Cr) & Year Nagpur - Mumbai Expressway Shirdi 1,312 1,253 Yes Q1 20 Q2 22 6 lane tunnel at Khamba
Slide 10: FY20 Priorities: Continued De-leveraging & Business Return Improvement
FY20 Priorities: Continued De-leveraging & Business Return Improvement 1. Strong Operating Free Cash Flow 2. EBITDA to cash flow conversion o Business focus on construction services 97% o Strong growth driven by high book-to-bill ratio 65% o Tight control on working capital to drive EBITDA conversio
Slide 11: Maintaining Guidance: FY2020
Maintaining Guidance: FY2020 Strategic Priorities Strong Order Inflows… o Avg. Annual New Order Intake of INR 60-65 bn o Book to Bill to be maintained in excess of 3.5x Strengthen Maximise Asset Light Free Cash Business Flows …Translating into Stable Growth.. Model FY20 Guidance (INR Mn) Revenues 25
Slide 12: Significant Deleveraging Despite Continued Strong Revenue Growth
Significant Deleveraging Despite Continued Strong Revenue Growth Net Debt/Equity (x) Net Debt (INR Mn) 2.4 2.5 18,612 17,399 17,016 2.1 16,337 15,443 1.5 1.2 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Debt Maturity Profile (INR MN) Working Capital Days 2,316 2,090 2,139 1,986 95 105 78 78 74
Slide 13: Growing Order Book: Current Book to Bill of 4.2x
Growing Order Book : Current Book to Bill of 4.2x Growing and De-Risked Order Book (INR Bn) Geographical Diversification GPL’s Growth in EPC order book over the last 5 years West Bengal Andhra Pradesh 1% 12% 163 129 132 Bihar Uttar Pradesh 6% 92 22% 48 Gujarat 2% Jammu & Kashmir FY15 FY16 FY17 FY18
Slide 14: Key Investment Highlights
Key Investment Highlights Strong presence in high growth construction sector Healthy and diversified pure EPC un-executed order book with good revenue growth visibility Highly efficient operations with strong execution capabilities Balance-sheet improvement on track for industry leading metrics in n
Slide 15: Digital Project Management Roll-out at GPL
Digital Project Management Roll-out at GPL
Slide 16: End-to-end Digital Project Management
End-to-end Digital Project Management • Reconciliation of Work Done vs. Costs (Material and Machinery usage) Weigh-bridges Crushers Plants Dump Trucks Heavy Machinery • Automated reports for easy monitoring Material Tracking Machinery Tracking and management • Custom notifications for smooth IoT Pla
Slide 17: Angul Project – Case Study
Angul Project – Case Study 167 6 5 162 Vehicles & Weigh bridges Concrete Daily Project Machines Plants users 115 1,405 6,263 18,456 Work reports Downtime Equipment Concrete submitted Logs Requests Requests 58,751 74,713 1,70,983 Material transactions Machine hours Cubic meters of concrete tracked pr
Slide 18: Insights, Reports & Notifications
Insights, Reports & Notifications
Slide 19: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Validate Hired Equipment Bills • Debit Notes on diesel in real time • Track Variation from Tender BOQ Qtys vs. • Tentative expenses Progress for repairs • Validate Invoice vs. RFI Qtys • Validate Vendor payments • Actual Work
Slide 20: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Improves Equipment Utilization& • Monitor Fuel filling rate to maintain Availability % working capital • Equipment Productivity • Resource allocation between Projects • Tentative spare requirement & cost • Asset Turnover Ratio
Slide 21: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Compare Equipment performance of different manufacturers • Real time stock details • Monitor Fuel filling rate • Monitor Realtime receipt of material at site • Schedule procurement of long • Material allocation across projects
Slide 22: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Monitor progress vs. Schedule • Instant MIS reports • Track Variation from Tender BOQ • Asking rate for work execution • Reconciliation of Concrete, Bitumen, • Electronic documentation of RFI • Equipment Utilization GSB,WMM w.
Slide 23: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Backup for periodical material receipts to claim Price Escalation • Digital Backup for Claiming Idle charges • Maintain Evidence of RoW issues of equipment • Track delays due to unforeseen conditions • Claim new Items not incl
Slide 24: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Compare Equipment productivities in different geographical and climatic • Deriving average Fuel norms of conditions equipment’s based on type of work • Compare actual costs and • Fuel Mileage can be considered inputs Tender vs
Slide 25: PMC @ HQ
PMC @ HQ PMC Project Project Project Coordinator-1 Coordinator-2 Coordinator-3 PMC Site Project-1 Representative Project-2 Project-3 Equipment Material Operation Progress Management Management Management Monitoring Attaching & Detaching Asset Material Progress DPR Fuel logger Request Own-P&M H.O Hir
Slide 26: Angul Project: Milestones
Angul Project: Milestones ▪ Based on Tare Weight Anomalies found, Calibration at 2 Weighbridges is corrected ▪ Equipment Odometer which are not working highlighted and were repaired ▪ Qtys used in Diversion work and Indirect works are recorded ▪ Realtime concrete production information reduced commu
Slide 27: Appendix
Noy) Gayatri Projects Limited GAYATRI Appendix Efficiency. © Execution. Excellence.
Slide 28: Robust Upcoming Bid Pipeline
Robust Upcoming Bid Pipeline Significant Traction in NHAI Ordering Awards Coming in GPL’s Sectoral and Geographical Strongholds Significant NHAI Bid Pipeline of 2,222 km Andhra Pradesh, 4% Telangana, 3% INR c.800 Bn Highway Projects Others, 15% Uttar Pradesh, Awarded in FY2019 16% HAM, 440 Rajasthan
Slide 29: Strategy – Focusing on 'Asset Light' EPC segment
Strategy – Focusing on ‘Asset Light’ EPC segment Asset light EPC model Grow presence in core EPC segments o Pure EPC company with no asset-heavy o Actively bid for quality projects in core BOT or HAM project work. areas of expertise- roads, irrigation, o Diversified across geographies and industrial
Slide 30: Spotlight on Asset-Light Model
Spotlight on Asset-Light Model 2012-2015 : GPL numbers depressed due to asset Core Construction Services business is a high ROCE business; investments At the bottom of cycle generated 18.2% 2016 onwards: Business restructuring and Shift towards In line with the Industry practice, Free cash f
Slide 31: Strong Execution Capabilities & a Diverse Range of Projects
Strong Execution Capabilities & a Diverse Range of Projects Projects executed in last 5 years Strong BG limits key competitive advantage Company’s existing BG limit provides additional No. of projects Value of contract o Company has existing BG limit of INR 44 bn Segment advantage to expand order bo
Slide 32: Profit & Loss
Profit & Loss All figures in INR Million INR Mn FY19 FY18 FY17 Revenue 34,631 29,123 21,154 Expenses 29,182 24,446 17,919 EBITDA 5,449 4,677 3,234 EBITDA Margin 15.7% 16.1% 15.3% Depreciation 659 547 432 Finance Cost 2,513 2,394 2,014 Other Income 79 89 306 PBT 2,357 1,825 941 PBT Margin 6.8% 6.3% 4
Slide 33: Balance Sheet
Balance Sheet All figures in INR Million ASSETS (INR Mn) FY19 FY18 FY17 EQUITY AND LIABILITIES (INR Mn) FY19 FY18 FY17 EQUITY NON-CURRENT ASSETS (a) Equity Share capital 374 374 355 (a) Property Plant & Equipment 3,763 3,350 3,093 (b) Other Equity 12,922 10,856 7,056 (b) Capital Work in Progress 5 -
Slide 34: Board of Directors
Board of Directors Promoter and Non-Executive Chairperson, over 25 years of experience in the T. Indira Subbarami Reddy construction industry T. V. Sandeep Kumar Reddy Promoter and Managing Director, 20+ years of construction experience J Brij Mohan Reddy Executive Vice Chairman, Over 49 years of ex
Slide 35: Management Team - HQ
Management Team - HQ T Sandeep Reddy D Sitaram ▪ Managing Director ▪ President, Business Development ▪ Masters in Construction Engineering & Management ▪ In-charge of evaluating new business units, from University of Michigan, USA identifying suitable Joint-Venture partners, and ▪ 20+ years of const
Slide 36: Management Team - Projects
Management Team - Projects K Sesha Reddy CH Ramakrishna Rao ▪ Senior Vice President, Transportation ▪ Senior Vice President, Roads ▪ In-charge of project monitoring and controls ▪ Oversees road construction projects ▪ Previously a Project Head at L&T ▪ Masters in Construction management from Birla ▪
Slide 37: Contact Details
Contact Details V V Chandra Sekhar Gayatri Projects Limited Tel: +91 40 23310330/23314284/4296 Email: vvcs@gayatri.co.in Sheetal Khanduja Go India Advisors +91 9769364166 sheetal@goindiaadvisors.com 36