Slide 1: Investor Presentation May 2017
MAY 2017 KNR Constructions Limited Investor Presentation
Slide 2: Disclaimer
2 KNR Constructions Limited Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by KNR Constructions Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purcha
Slide 3: Key Highlights & Result Update
3 KNR Constructions Limited KEY HIGHLIGHTS & RESULT UPDATE
Slide 4: Standalone Financial Highlights
4 KNR Constructions Limited Standalone Financial Highlights Revenue (Rs. Million) EBITDA (Rs. Million) Adjusted PBT* (Rs. Million) +71% +50% +35% 15,411 2,296 1,741 1,529 1,291 9,025 FY16 FY17 FY16 FY17 FY16 FY17 Revenue (Rs. Million) EBITDA (Rs. Million) PBT (Rs. Million) 63% +69% +11% 4,821 722 48
Slide 5: Key Updates
5 KNR Constructions Limited Key Updates Signed a share purchase agreement to sell their equity stake in two Road BOT assets • Company along with Patel Engineering Limited (PEL) signed a share purchase agreement to sell entire equity stake in two Road BOT assets viz. Patel KNR Infrastructure Limited
Slide 6: Standalone Financial Results – Full Year
6 KNR Constructions Limited Standalone Financial Results – Full Year Rs. Million FY17 FY16 YoY Net Sales 15,325.4 8,851.1 73% Other Operating Income 85.1 174.4 -51% Total Revenue 15,410.5 9,025.5 71% Operating Expenses 11,145.1 6,062.9 Employees Expenses 552.4 431.2 Other Expenditure 1,417.3 1,002.3
Slide 7: Standalone Financial Results – Q4
7 KNR Constructions Limited Standalone Financial Results – Q4 Rs. Million Q4 FY17 Q4 FY16 YoY Net Sales 4,851.1 2,943.2 65% Other Operating Income -30.1 15.2 -299% Total Revenue 4,821.0 2,958.4 63% Operating Expenses 3,485.6 2,029.5 Employees Expenses 145.6 114.7 Other Expenditure 467.7 385.8 EBITDA
Slide 8: Standalone Balance Sheet
8 KNR Constructions Limited Standalone Balance Sheet Rs. Millions Mar-17 Mar-16 Rs. Millions Mar-17 Mar-16 NON-CURRENT ASSETS 9,567 7,222 EQUITY 8,955 7,377 Fixed Assets Equity Share capital 281 281 Property, plant and equipment 2,607 1,762 Other equity 8,674 7,096 Capital work-in-progress 15 59 615
Slide 9: Business Overview
9 KNR Constructions Limited BUSINESS OVERVIEW
Slide 10: Business Overview
10 KNR Constructions Limited Business Overview One of the leading companies providing Engineering, Procurement and Construction (EPC) services Major Projects in Roads & Highways – one of the fast growing sector Established presence in Irrigation and Urban Water Infrastructure Management VISION 20 ye
Slide 11: Transformation
11 KNR Constructions Limited Transformation 2016 2015 Crossed Revenue of Rs. 10,000 mn 2013 2/4 laning of on Standalone Basis Madurai – Ramanathapuram 2012 3rd BOT Toll project worth Section of NH-49 in the State of Rs.9,005 mn in Tamil Nadu under Kerala 2010 Early completion of Biggest Road NHDP Ph
Slide 12: Management
12 KNR Constructions Limited Management Mr. K. Narasimha Reddy – Founder Promoter & Managing Director Over 48 years of experience in the Highway sector Started career in 1968 and engaged in the business of undertaking civil and mechanical contracts Extensive knowledge and experience in multi project
Slide 13: Supported by Professional Team
13 KNR Constructions Limited Supported by Professional Team Mr. T.L. Verma Mr. D. Tirupathi Reddy (Vice President - Projects) (GM – Projects) A Bachelor of Engineering (BE) from MITS Gwalior (MP) with Over 24 years of rich experience in various fields of Civil Over 35 years of total experience with
Slide 14: Key Business Strengths
14 KNR Constructions Limited KEY BUSINESS STRENGTHS
Slide 15: Significant Experience and Strong Track Record in Timely Execution
1 SIGNIFICANT EXPERIENCE AND STRONG TRACK RECORD IN TIMELY EXECUTION OF PROJECTS KNR Constructions Limited 15 Project Execution Top management’s active involvement at all stages of Project execution o Selection of Major Raw Material o Selection of construction Camp location Faster Decision making to
Slide 16: Pan India Project Execution Capability
16 KNR Constructions Limited Pan India Project Execution* Capability Bihar Arunachal Pradesh No of Projects 1 No of Projects 1 Uttar Pradesh Value of Projects Rs. 1,411 mn Value of Projects Rs. 920 mn No of Projects 4 Value of Projects Rs. 1,704 mn Assam No of Projects 2 Madhya Pradesh Value of Proj
Slide 17: Project Execution Highlights
17 KNR Constructions Limited Project Execution Highlights Cement Concrete Road • Completed Widening to 4/6 lanes and Strengthening of Existing two lane carriageway of NH – 5 in the State of Orissa for a length of 56.0 Kms with total contract value of work is Rs 2,310 mn • Existing road was widened &
Slide 18: World Class Construction Equipments
2 WORLD CLASS CONSTRUCTION EQUIPMENTS USE OF RIGHTRIGHT TOOLS FOR WORK KNR Constructions Limited 18 In-house Construction Equipment Sl. No. Name Of The Machinery Qty 1 Tippers & Tankers 664 2 Excavators 171 3 Compactors 79 4 Concrete Mixers And Pumps 94 5 Loaders 43 6 Pavers 34 7 Crushers 14 8 Grade
Slide 19: In-house Team of 1,017 Qualified Employees
3 IN-HOUSE TEAM OF 1,017 QUALIFIED AND EXPERIENCED EMPLOYEES LED BY PROVEN MANAGEMENT TEAM KNR Constructions Limited 19 In-house Execution Team 1% 35% 36% Project Engineering Site Supervision Site Engineers Equipment Operators Admin & Office Staff 6% 22%
Slide 20: Host of Marquee Clients
4 HOST OF MARQUE CLIENTS KNR Constructions Limited 20 Reputed Clientele National Andhra Pradesh Ministry of Hyderabad Karnataka Karnataka Road Highways Road Development Road Transport Growth State Highway Development Authority of Corporation & Highways Corridor Improvement Corporation India (NHAI) (
Slide 21: BOT Portfolio
21 KNR Constructions Limited BOT PORTFOLIO
Slide 22: BOT Portfolio – Annuity Projects
22 KNR Constructions Limited BOT Portfolio – Annuity Projects Particulars Patel KNR Infrastructures limited (PKIL)^ Patel KNR Heavy Infrastructures Limited (PKHIL)^ Stake 40% 40% Project Details Project Type Road-Annuity Road-Annuity State Karnataka Telangana JV Partner PEL PEIL Client NHAI NHAI Len
Slide 23: BOT Portfolio – Toll Projects
23 KNR Constructions Limited BOT Portfolio – Toll Projects Particulars KNR Walayar Tollways Private Limited KNR Muzaffarpur Barauni Tollway Private Limited Stake 100% 51% Project Details Project Type Road-Toll Road-Toll State Kerala Bihar JV Partner - JKM Infra Project Ltd Client NHAI NHAI No of Lan
Slide 24: Walayar–Vadakkancherry Project
24 KNR Constructions Limited Walayar –Vadakkancherry Project KNR Walayar Tollways Private Limited is a wholly owned subsidiary of KNR Constructions Limited, incorporated as an SPV for execution of Walayar Road Project Provisional Completion Certificate for 100% of Project length has been issued for
Slide 25: Muzaffarpur - Barauni Project
25 KNR Constructions Limited Muzaffarpur - Barauni Project KNR Muzaffarpur Barauni Tollway Private Limited is a Step down subsidiary of KNR Constructions Limited, incorporated as an SPV for execution of Muzaffarpur -Barauni Road project on BOT (Toll) basis Provisional Completion Certificate for 75%
Slide 26: Order Book & Business Strategy
26 KNR Constructions Limited ORDER BOOK & BUSINESS STRATEGY
Slide 27: Order-book Break-up
27 KNR Constructions Limited Order-book Break-up Other 100% State Govt. 39% Others Captive 2% 0% International Order* 6% Central Govt. 53% Captive State Govt. Central Govt. International Order* Others ORDER BOOK OF RS. 37,689 MILLION AS ON 31ST MARCH 2017 * - Government of People's Republic Of Bangl
Slide 28: Order-book Highlights
28 KNR Constructions Limited Order-book Highlights Irrigation Key Projects Rs. mln Roads - Non 15% Captive Others Hubli – Hospet Section of NH - 63 6,674 85% 0% Madurai -Ramanathpuram Section of NH-49 4,831 Roads - Captive 0% Thiruvananthapuram Bypass 4,222 Rehabilitation and upgradation of Dindigul
Slide 29: Order-book: State-wise
29 KNR Constructions Limited Order-book: State-wise Madhya Pradesh Arunachal Pradesh No of Projects 3 No of Projects 1 Balance Value Rs. 1,569 mn Balance Value Rs. 464 mn Karnataka AP & Telangana No of Projects 9 No of Projects 11 Balance Value Rs. 7,476 mn Balance Value Rs. 6,040 mn Kerala Tamil Na
Slide 30: Business Strategy
30 KNR Constructions Limited Business Strategy Focus on Projects involving Higher degree of engineering skills Focus on securing Continuously explores EPC contracts from growth opportunities reputed Clients and by forming strategic Concessionaire Joint Ventures (JVs) Capitalise on Execute all the Op
Slide 31: Financial Highlights
31 KNR Constructions Limited FINANCIAL HIGHLIGHTS
Slide 32: Consolidated Financial Results
32 KNR Constructions Limited Consolidated Financial Results Rs. Million FY17 FY16 YoY Total Revenue 16,796 11,917 41% Operating Expenses 11,893 8,554 Employees Expenses 586 463 Other Expenditure 1,678 1,183 EBITDA 2,640 1,718 54% EBITDA margin 15.7% 14.4% Other Income 330 430 Depreciation 1,156 709
Slide 33: Consolidated Balance Sheet
33 KNR Constructions Limited Consolidated Balance sheet ASSETS (Rs. Millions) Mar-17 Mar-16 EQUITY AND LIABILITIES (Rs. Millions) Mar-17 Mar-16 NON-CURRENT ASSETS 15,060 13,843 EQUITY 8,785 7,794 (a) Property, plant & equipment 2,631 1,807 27 71 (a) Equity Share capital 281 281 (b) Capital work-in-p
Slide 34: Standalone Financial Highlights
34 KNR Constructions Limited Standalone Financial Highlights* Financial Year 2010 2011 2012 2013 2014 2015 2016^ 2017^ Rs. 7,125 Rs. 7,930 Rs. 7,505 Rs. 6,921 Rs. 8,348 Rs. 8,761 Rs. 9,025 Rs. 15,411 Turnover $118.6 $132.0 $125.0 $115.2 $139.0 $140.0 $136.1 $238.3 Rs. 1,121 Rs. 1,356 Rs. 1,338 Rs. 1
Slide 35: Standalone Financial Highlights
35 KNR Constructions Limited Standalone Financial Highlights Revenue & EBITDA (Margin %) EBITDA 15.7% 17.1% 17.8% 16.8% 15.1% 14.4% 16.9% 14.9% Margin (%) 15,411 8,348 8,761 9,026 7,125 7,930 7,505 6,921 EBITDA 2,296 1,121 1,356 1,338 1,164 1,258 1,261 1,529 Revenue 2010 2011 2012 2013 2014 2015 201
Slide 36: Standalone Net Working Capital Days
36 KNR Constructions Limited Standalone Net Working Capital Days 79 69 53 52 48 52 98 43 41 74 66 64 51 53 45 39 26 28 23 20 16 16 15 18 15 15 17 14 7 10 13 12 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Inventory Debtors Creditors Net Working Capital
Slide 37: Shareholding Pattern as on 31st March 2017
37 KNR Constructions Limited Shareholding Pattern as on 31st March 2017 10.5% Shareholders Holding more than 1% of the Equity % to Equity (Other than Promoters) HDFC Mutual Fund 8.35% 27.0% Tata Mutual Fund 3.76% Copthall Marutius Investment Limited 3.11% 58.0% ICICI Mutual Fund 3.04% 4.6% Franklin
Slide 38: Other Businesses
38 KNR Constructions Limited Other Businesses Strong growth opportunity in development of Agricultural Infrastructure Execution of Irrigation & Water Supply Projects with Joint Venture Partners Executed 3 Projects in Telangana & 1 Project in Bihar Executed an Urban Water Infrastructure project in th
Slide 39: Project Gallery
39 KNR Constructions Limited PROJECT GALLERY
Slide 40: Completed Projects
40 KNR Constructions Limited Completed Projects Eturunagaram Bridge over river KNR Walayar Toll Road Godavari
Slide 41: Completed Projects
41 KNR Constructions Limited Completed Projects Walayar Toll plaza Muzaffarpur-Barauni Road Project
Slide 42: Under-Construction Projects
42 KNR Constructions Limited Under-Construction Projects Coimbatore Flyover Coimbatore Flyover
Slide 43: Under-Construction Projects
43 KNR Constructions Limited Under-Construction Projects Flyover in Madurai - Salem Flyover Ramanathpuram Section
Slide 44: Equipments
44 KNR Constructions Limited Equipments Salem work yard Tippers on site
Slide 45: Irrigation Projects
45 KNR Constructions Limited Irrigation Projects Palamurru lift Irrigation
Slide 46: Irrigation Projects
46 KNR Constructions Limited Irrigation Projects Palamurru lift Irrigation
Slide 47: For further information, please contact
47 KNR Constructions Limited For further information, please contact Company : Investor Relations Advisors : Strategic Growth Advisors Pvt. Ltd. KNR Constructions Ltd. CIN: U74140MH2010PTC204285 CIN: L74210DL1995PLC238364 Mr. Jigar Kavaiya / Mr. Kevin Shah Mr. K. Venkata Ram Rao (GM - Finance & Acco