Gayatri Projects Limited · NSE:GAYAPROJ
Gayatri Projects — Q1 FY2021 Earnings Presentation
29 slides from Gayatri Projects's earnings presentation, Aug 31, 2020
Slide 1: Submission of Presentation to Analysts/Investors cover letter
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Slide 2: Gayatri Projects Limited Investor Presentation
Gayatri Projects Limited Investor Presentation 1
Slide 3: GPL: Amongst India's leading Asset-Light EPC Companies
GPL: Amongst India’s leading 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 segm
Slide 4: Impact of Covid-19 Pandemic
Impact of Covid – 19 Pandemic Operational Impact Financial Impact Outlook • Executions across the • Profitability of Q1FY20 was • In Q1FY20 company’s project sites were impacted on account of execution remained at 50% - temporarily suspended from interruption in execution 60% due to shortage of 22nd
Slide 5: Q1FY21 Results Update
Q1FY21 Results Update NOY, GAYATRI
Slide 6: Operational and Financial Snapshot: Q1FY21
Operational and Financial Snapshot: Q1FY21 Projects Execution Status • Purvanchal expressway is running in line/a bit ahead of scheduled (adjusted for COVID-19 related delays) • Telangana irrigation projects (PLIS package 18 & Kaleswaram Project) has picked up pace and the company currently expects
Slide 7: Q1FY21 (YoY) Financial Performance
Q1FY21 (YoY)– Financial Performance Revenue (INR Mn) EBITDA (INR Mn) PBT (INR Mn) & EBITDA Margin 15.5% 12.9% 9,841 646 6,679 1,528 861 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Q1FY20 Q1FY21 -136 Key Highlights • Revenue – Revenue down, execution impacted due to lockdown restrictions imposed in March 2020 and fu
Slide 8: Q1FY21 Income Statement - Snapshot
Q1FY21 Income Statement - Snapshot INR Mn Q1FY21 Q1FY20 YoY(%) FY20 FY19 YoY(%) Revenue 6,679 9,841 -32% 34,273 34,631 -1% Expenses 5,819 8,313 -30% 30,007 29,182 3% EBITDA 861 1,528 -44% 4,266 5,450 -22% EBITDA Margin 12.9% 15.5% 12.4% 15.7% Depreciation 217 192 13% 909 659 38% Finance Cost 782 643
Slide 9: Top Work Orders – Status Update – Q1FY21
Top Work Orders – Status Update – Q1FY21 Contract Balance work as on Mobilized on Revenue Expected Completion of Project Name Location Value (INR Cr) 01.7.2020 (INR Cr) Site Booking Start Project Purvanchal Expressway Package 1 Eastern UP 1,483 946 Yes Q3 19 Q3 22 Purvanchal Expressway Package 2 Eas
Slide 10: Top Work Orders – Status Update – Q1FY21
Top Work Orders – Status Update – Q1FY21 Contract Value Balance work as on Mobilized Revenue Booking Expected Completion of Project Name Location (INR Cr) 01.4.2020 (INR Cr) on Site Start Project Nagpur - Mumbai Expressway Shiridi, MH 1,312 1046 Yes Q1 20 Q1 22 6 Lane Tunnel at Khambataki Ghat Satar
Slide 11: Notes to Account - Snapshot
Notes to Account - Snapshot Note 6 7 Description Gayatri Hi-Tech Hotels: Legacy issue. Investment in Gayatri Highways Limited: Significantly delayed EPC cost receivable Road BOT assets owned by GPL were spun off from a related party. It was subsequently into separate listed company (GHL) and 74% con
Slide 12: Notes to Account - Snapshot
Notes to Account - Snapshot Note 8 9 Description Contract Advances (loan): Exposure to Sai Maatarini Tollways Limited (SMTL) – In the ordinary course of (Subsidiary of associate company – GHL). The company business, the company had given has to receive an amount of INR 245cr towards EPC contract adv
Slide 13: Notes to Account - Snapshot
Notes to Account - Snapshot Note 10 11 Description Receivables from Western UP Tollways Advance to Suppliers, Sub Contractors (erstwhile associate company). EPC Cost – given in the normal course of business 36.2 cr. This amount is receivable from the erstwhile associate company against the EPC works
Slide 14: Notes to Account - Snapshot
Notes to Account - Snapshot Note 12 Description Gayatri Highway Loan Guarantee - Exposure including interest – 125 cr GPL & GHL jointly & severally agreed to repay the loan availed by GHL amounting to INR 125 cr along with interest in 12 monthly instalments commencing from May 2019. The entire amoun
Slide 15: Building an Asset Light Business Model
Building an Asset Light Business Model Growing Revenue Base (INR MN) Working Capital Days 105 91 78 78 64 62 FY16 FY17 FY18 FY19# FY20 Q1FY21* Receivable Days Inventory Days Payable Days Net Working Capital ❑ Re-focused business on “Asset-Light” Model over last 4 years ❑ Revenue almost doubled in la
Slide 16: Strong EPC Order Book; High Revenue Visibility
Strong EPC Order Book; High Revenue Visibility Geographical Diversification Segmental Diversification Jharkhand Gujarat Others 67% 2% 1% 3% Uttar Pradesh Karnataka 21% 4% Bihar 28% 6% Jammu 3% 2% 8% ROAD IRRIGATION MINING INDUSTRIAL Maharashtra Andhra Pradesh De-Risked EPC Order Book (INR Bn) 12% 16
Slide 17: Balance Sheet Getting Stronger
Balance Sheet Getting Stronger Debt Maturity Profile (INR MN) Reducing Long Term Debt (INR Mn) 2,299 1,986 2,030 10,986 10,298 9,852 9,211 1,111 6,896 FY21 FY22 FY23 FY24 FY16 FY17 FY18 FY19 FY20 Net Debt/Equity (x) EBITDA to CFO Conversion 2.38 2.51 97% 2.06 83% 1.52 1.65* 65% 1.16 42% 26% FY15 FY1
Slide 18: Roadmap to reduce term debt to zero
Roadmap to reduce term debt to zero Conciliation & Settlement mechanism introduced by GOI/NHAI INR 1 Bn+ GOI scheme for monetisation of under litigation arbitral awards against the Bank Guarantees INR 2-3 Bn+ Internal Accruals/Other Initiatives INR 1-2 Bn+ Total expected cashflow in 6-12 month INR 4
Slide 19: FY21: Guidance
FY21: Guidance FY21 Guidance (INR Mn) Order Inflow INR 30 - 40 billion Revenues 0% - 5% Growth EBITDA Margin 14% - 15% 18
Slide 20: 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 21: Appendix
Appendix 20
Slide 22: Awards & Claims
Awards & Claims Different arbitration tribunals/courts have awarded GPL, a total of INR 7.5 AWARDS INR 6.8 Bn+ Bn+, towards disputed receivables from its EPC clients. In addition, GPL has a net exposure to CLAIMS INR 5 Bn+ outstanding claims of INR 6.7 Bn+ in different arbitral tribunals/courts. 21
Slide 23: Monetisation of stake in power asset
• The company concluded the sale of its 5.95% stake in power assets of Sembcorp Energy India Ltd (“SEIL”) for cash proceeds of INR 4,068 Mn + upside option in Dec 2019. • The proceeds from the above sale, INR 2,068 Mn has been used towards repayment of long-term debt and the balance amount is utiliz
Slide 24: Profit & Loss
Profit & Loss All figures in INR Million INR Mn FY20 FY19 FY18 FY17 Revenue 34,273 34,631 29,123 21,154 Expenses 30,007 29,182 24,446 17,919 EBITDA 4,266 5,449 4,677 3,234 EBITDA Margin 12.4% 15.7% 16.1% 15.3% Depreciation 909 659 547 432 Finance Cost 2,857 2,513 2,394 2,014 Other Income 52 79 89 30
Slide 25: Balance Sheet
Balance Sheet All figures in INR Million ASSETS (INR Mn) FY20 FY19 FY18 EQUITY AND LIABILITIES (INR Mn) FY20 FY19 FY18 EQUITY NON-CURRENT ASSETS (a) Equity Share capital 374 374 374 (a) Property Plant & Equipment 3,942 3,763 3,350 (b) Other Equity 9,049 12,922 10,856 (b) Capital Work in Progress 109
Slide 26: Board of Directors
Board of Directors Promoter and Non-Executive Chairperson, over 25 years of experience in the T. Indira Reddy construction industry T. V. Sandeep Kumar Reddy Promoter and Managing Director, 20+ years of construction experience Executive Vice Chairman, Over 49 years of experience in Heavy Engineering
Slide 27: Management Team - HQ
Management Team - HQ T Sandeep Reddy D Sitaram ▪ Managing Director ▪ President, Business Development ▪ Masters in Construction Engineering & ▪ In-charge of evaluating new business units, Management from University of Michigan, USA identifying suitable Joint-Venture partners, and ▪ 20+ years of const
Slide 28: 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 29: Thank You
Thank You Contact Details Sheetal Khanduja V V Chandra Sekhar Go India Advisors Gayatri Projects Limited +91 9769364166 Tel: +91 40 23310330/23314284/4296 sheetal@goindiaadvisors.com Email: vvcs@gayatri.co.in Ankit Toshniwal Chetan Sharma Go India Advisors Gayatri Projects Limited +91 7976749036 Tel