Rpp Infra Projects Ltd. · NSE:RPPINFRA
Rpp Infra Projects — Q2 FY2019 Earnings Presentation
34 slides from Rpp Infra Projects's earnings presentation, Nov 19, 2018
Slide 1: RPP Infra Projects Ltd – Exchange Cover Letter
RPP Infra Projects Ltd Monday, 19" November, 2018 Corporate Relationship Department The Manager, Listing Department BSE Limited National Stock Exchange of India Ltd 1st Floor, New Trading Ring, Exchange Plaza, 5" Floor, Rotunda Building, PJ.Towers, Plot no. C/1, Block G, Dalal Street, Fort, Bandra K
Slide 2: RPP Infra Projects Ltd Corporate Presentation Q2 FY19
RPP INFRA PROJECTS LTD CORPORATE PRESENTATION | Q2 FY19
Slide 3: Disclaimer
Disclaimer This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections abo
Slide 4: Agenda
Agenda 1 Introduction to the Company Slides 4-7 2 Q2FY19 Review & Future Guidance Slides 8-16 3 Industry Overview Slides 17-22 4 Appendix – Company Overview Slides 23-32
Slide 5: A Pure Play Niche EPC Company
A Pure Play Niche EPC Company Order Book (Sep’18) – INR 14,566 Mn Strong presence in the fast-growing micro-markets of South India Water Currently spreading its footprints in Maharashtra and MP Management Buildings Total Total for geographical diversification 27% 19% Diversified presence in Hi
Slide 6: A Fast Growing Company…
A Fast Growing Company… Revenue EBITDA PAT (INR Mn) (INR Mn) (INR Mn) 649 4,991 296 483 454 228 3,672 399 3,147 193 358 351 2,600 2,659 2,403 136 115 103 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Adjusted PAT excluding one time tax expense of Rs. 17.96
Slide 7: …With a Strong Balance Sheet
…With a Strong Balance Sheet Return on Equity Net cash from operations (INR Mn) Net Debt to Equity (x) (%) 0.7 13 704.9 0.6 11 10 10 0.5 9 370.5 374.3 6 0.3 0.3 0.3 176.9 191.4 -16.8 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 *calculated on a consolidat
Slide 8: Creating Sustainable Shareholder Value
Creating Sustainable Shareholder Value Net cash from operations Free Cash Flow Generation OCF/EBITDA (INR Mn) (INR Mn) 704.9 0.82 0.82 0.77 485.4 339.6 0.55 0.49 370.5 374.3 266.7 187.1 176.9 191.4 146.4 -16.8 -0.04 FY13 FY14 FY15 FY16 FY17 FY18 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017
Slide 9: Q2FY19: Strong Performance
Q2FY19: Strong Performance EBITDA (INR Mn) & EBITDA Margin (%) Revenue (INR Mn) Operational Highlights 1,393 12.7% 12.3% 171 o Highest ever quarterly 1,079 137 revenue despite it being a o Revenue up 29% YoY due to seasonally weak quarter strong execution o Order inflows in Q2FY19 at o EBITDA up 25%
Slide 10: H1FY19 – Balance Sheet Strength Intact
H1FY19 – Balance Sheet Strength Intact 17% 0.3x Adj Return on Net Debt to Equity Equity (%) (x) 82 Days 14 Days 75 Days Receivable Days Inventory Days Payable Days *Above data is calculated on TTM basis 9
Slide 11: Q2FY19 At a Glance
Q2FY19 At a Glance INR Mn Q2FY19 Q2FY18 % Change Revenues 1,393 1,079 29% EBITDA 171 137 25% EBITDA Margin 12.3% 12.7% Finance Cost 50 44 14% PAT 92 67 38% EPS (INR) 4.1 2.9 38% 10
Slide 12: H1FY19 At a Glance
H1FY19 At a Glance INR Mn H1FY19 H1FY18 % Change Revenues 2,397 2,204 9% EBITDA 307 299 3% EBITDA Margin 12.8% 13.5% Finance Cost 97 102 -4% PAT 157 145 8% EPS (INR) 7 6 8% 11
Slide 13: Business Review
Business Review ROADS Current Order Book – INR 7,856 Mn; Will maintain high EBITDA margins of 12-14% WATER MANAGEMENT Current Order Book – INR 2,755 Mn; Will maintain high EBITDA margins of 15-18% BUILDINGS Current Order Book – INR 3,955 Mn; Will maintain EBITDA margins of 10-12% 12
Slide 14: H1FY19 – Strong Order Inflows
H1FY19 – Strong Order Inflows Name Amount Segment State Post Q2FY19 Wins Tamilnadu Water Supply and Drainage Board INR 1,558 Mn Water Management Tamilnadu Government of Jharkhand INR 527 Mn Water Management Jharkhand Q2FY19 Order Wins Public Works Department INR 2,171 Mn Roads & Highways Maharashtra
Slide 15: Orderbook Growth Trajectory
Orderbook Growth Trajectory Order Book Break up (INR Mn) 100% Telangana Andhra 1% Pradesh Bangladesh 15,000 Govt Order Book 7% 14,566 1% Tamil Nadu 33% 11,750 24%+ Order Book Growth in H1 FY19 Karnataka 9% Kerala 10% 7,860 9 7,250 States of Operations Madhya Pradesh 2% 3 Countries of Operations Sril
Slide 16: FY19 Outlook & Guidance
FY19 Outlook & Guidance Revenue Guidance INR Mn FY2018 Actual 4,991 FY2019 6,500-7,000 FY2020 8,500-9,000 15
Slide 17: Key Investment Highlights
Key Investment Highlights Growing Order Book c.2x in 3 years Short duration projects 2.8x Book to Bill ratio Strong revenue visibility 87% of projects to be completed in 18-24 months period Superior Revenue Growth • 30%+ for next 2 years De-risked Business Profile • 100% Government orders Healthy Ba
Slide 18: Industry Overview
& Rte Industry Overview 17
Slide 19: Construction industry in India: Compelling growth drivers
Construction industry in India: Compelling growth drivers o Growing economy and increasing urbanization along with favorable policy bodes well for construction sector in the country o Big boost in infrastructure spending expected over next few years NHAI awarding (1) Roads Kms New projects such 6,27
Slide 20: Rural Infra: A Strong Government Focus
Rural Infra: A Strong Government Focus UNION BUDGET: ALLOCATION TO INFRASTRUCTURE SECTOR 5.97 3.96 2.51 2.21 1.81 FY15 FY16 FY17 FY18 FY19 19
Slide 21: Significant Upcoming Growth in Roads
Significant Upcoming Growth in Roads USD 100 billion allotted for GoI plans to invest USD 22.4 billion towards road infra in North-East India Key Govt Priority infrastructure in India during 2018-2020 Length of national Roads and Highways industry projected to exhibit CAGR of 36.2% Sector dev’ment h
Slide 22: Bharatmala: Stepping Stone Towards New India
Bharatmala: Stepping Stone Towards New India Components of BharatMala Road Length Outlay Programme (KM) (INR Bn) Corridor-based approach Economic Corridor Development 9,000 1,200 INR 3.8 tn of new projects out of INR Inter-Corridor and feeder roads 6,000 800 6.9 tn of overall spends National cor
Slide 23: The Irrigation Opportunity
The Irrigation Opportunity India accounts for ~17% of the total world’s population but only 4% of the Drip Irrigation coverage 3.37 MHA world’s fresh water resources: FICCI Micro Irrigation is amongst priority areas – exclusive fund being set up in Sprinkler Irrigation coverage 4.36 MHA NABARD Theor
Slide 24: Appendix – Business Highlights
Appendix – Business Highlights 23
Slide 25: De-Risked Business Model
De-Risked Business Model Short Max Project Duration: 24 mths Low Ticket Max Project Size < INR 250 Crores Duration Projects Projects Superior Profitability EBITDA Margins: 13%-14% 24
Slide 26: Improving Geographical Diversification
Improving Geographical Diversification FY14 Order Book – INR 5,360 mn Order Book (Sep’18) – INR 14,566 Mn Telangana Andhra Pradesh 1% 1% Bangladesh 7% Tamil Nadu Karnataka Uttar Pradesh, 33% 9% 9% Maharashtra, 6% Kerala 10% Karnataka, 12% Madhya Pradesh 2% Tamil Nadu, 73% Srilanka 3% Maharashtra 34%
Slide 27: High Revenue Visibility
High Revenue Visibility Project Duration Project Duration by Sector 5-10 mths 2% 39% 11-15 mths 25% 23% 11% 8% 16-24 mths 2% 3% 87% 5-10 Mths 11-15 Mths 16-24 Mths Building Infra Water Mgmt Book to bill ratio: 2.8x 26
Slide 28: Efficient Operations
Efficient Operations Large Talent Pool Small Ticket Size Captive equipment Stringent Enhance Onsite Liquidity Operations Control Strategic Subcontracting Raise Accelerate Milestone Bills Project Faster Completion Accurate Project Modelling 27
Slide 29: Key Marquee Projects
Key Marquee Projects Power Projects & Civil Infrastructure Industries Water & Irrigation Buildings Work •Sub Station at KPTCL, •Atomic Energy, •BHEL – Tirchy, Chennai •Construction for •1000 units of homes Karnataka Kalpakkam •MRPL, Bangalore contour canal for 49.3 for IDPs in Sri Lanka •Udupi Proje
Slide 30: Talent Driven Organization
Talent Driven Organization ▪ Started RPP Infra in 1988 Mr. P. Arulsundaram ▪ Civil Engineer by qualification Chairman & MD ▪ Practical experience of more than 23 years in construction industry ▪ Trustee in Erode District Builder’s Association Engineering College ▪ Masters in Business Administration
Slide 31: Board of Directors
Board of Directors ▪ Bachelors Degree from National Institute of Technology, Fellow of Institution of Mr. K. Ravi Engineers & Certified Maintenance Professional Independent Director ▪ Has over 43 years of experience in the construction industry ▪ Bachelors Degree from National Institute of Technolog
Slide 32: P&L Table
P&L TABLE INCOME STATEMENT (INR Mn) H1 FY19 FY18 FY17 Y-o-Y% Revenue 2,397 4,991 3,663 36% Expenses 2,090 4,342 3,180 37% EBITDA 307 649 483 34% EBITDA Margin 13% 13% 13% Depreciation 23 68 51 33% Finance Cost 97 193 168 15% Other Income 53 64 40 60% PBT 240 452 305 48% PBT Margin 10% 9% 8% Tax Expe
Slide 33: B/S Table
B/S TABLE Assets H1 FY 19 FY 18 FY 17 Equity and Liabilities H1 FY 19 FY 18 FY 17 Non-Current assets Property, plant and equipment 424 302 284 Equity Capital work in progress - 2 40 Equity Share Capital 226 226 226 Other Intangible assets - 1 0 Other Equity 1,788 1,645 1,524 Total equity 2,014 1,871
Slide 34: Thank You & Contact Us
Thank You & Contact Us Sheetal Khanduja Go India Advisors +91 9769364166 sheetal@goindiaadvisors.com Tanya Khosla Go India Advisors +91 9769387813 tanya@goindiaadvisors.com 33
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