Slide 1: KNR Constructions Limited Investor Presentation June 2020
KNR Constructions Limited Investor Presentation June 2020 Positioned To Build A New India
Slide 2: Disclaimer
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 purchase or subscribe for any secu
Slide 3: Key Highlights & Result Update
Key Highlights & Result Update
Slide 4: Standalone Financial Highlights
Standalone Financial Highlights (Rs. Million) Revenue EBITDA EBITDA Margins Adjusted PBT^ +2% +160 bps -6% -17% 7,157 6,756 1,441 1,469 21.7% 1,039 20.1% 859 Q4 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Revenue EBITDA EBITDA Margins Adjusted PBT^ +5% +14% +170 bps +4% 21,373 22
Slide 5: Standalone Financial Results
Standalone Financial Results Rs. Million Q4 FY20 Q4 FY19 YoY FY20 FY19 YoY Total Revenue 6,755.6 7,157.1 -6% 22,442.4 21,372.6 5% Operating Expenses 4,080.4 4,862.2 13,550.0 13,881.0 Employees Expenses 315.0 247.7 1,252.2 928.6 Other Expenditure 891.4 606.2 2,769.5 2,293.4 EBITDA 1,468.8 1,441.0 2%
Slide 6: Standalone Balance Sheet
Standalone Balance Sheet ASSETS (Rs. Million) Mar-20 Mar-19 EQUITY & LIABILITIES (Rs. Million) Mar-20 Mar-19 Non-Current Assets Equity Property, plant and equipment 3,777.7 3,709.2 Equity Share capital 281.2 281.2 Capital work-in-progress 101.5 0.1 Right of Use Asset 26.0 0.0 Other equity 15,957.7 1
Slide 7: Consolidated Financial Results
Consolidated Financial Results Rs. Million Q4 FY20 Q4 FY19 YoY FY20 FY19 YoY Total Revenue 7,301.4 7,653.6 -5% 24,516.8 22,915.0 7% Operating Expenses 4,154.6 4,899.5 14,004.1 14,051.4 Employees Expenses 319.0 252.6 1,269.2 947.7 Other Expenditure 953.5 695.8 3,019.1 2,549.2 EBITDA 1,874.3 1,805.7 4
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (Rs. Million) Mar-20 Mar-19 EQUITY & LIABILITIES (Rs. Million) Mar-20 Mar-19 Non-Current Assets Equity Property, plant and equipment 3,809.8 3,746.0 Equity Share capital 281.2 281.2 Capital work-in-progress 101.5 0.1 Instruments entirely equity in nature 85.0 85.0 R
Slide 9: Cash Flow Statement
Cash Flow Statement Standalone Consolidated Particulars (Rs. Million) FY20 FY19 FY20 FY19 Net Profit Before Tax 2,936.8 2,905.9 3,244.7 2,923.6 Adjustments for: Non-Cash Items / Other Investment or Financial Items 2,157.3 1,624.8 3,000.8 2,906.6 Operating profit before working capital changes 5,094.
Slide 10: Key Updates
Key Updates ❑ Signed SPA with Cube Highways and Infrastructure III Pte. Ltd for sale of its 100% stake in KNR Walayar Tollways Pvt Ltd for an enterprise value of Rs. 5,292.7 Million on 9th January 2020 ❑ Concession Agreement for KNR Palani Infra Pvt. Ltd. (NHAI HAM) project worth Rs. 9,200 Million (
Slide 11: Business Overview
Business Overview
Slide 12: Business Overview
Business Overview ❑ One of the leading companies providing Engineering, Procurement and Construction (EPC) services ▪ Major Projects in Roads & Highways – one of the fast-growing sectors ▪ Established presence in Irrigation and Urban Water Infrastructure Management Vision ❑ 20 years of experience of
Slide 13: Transformation
Transformation 1995 2006 2007 2008 ▪ Incorporated & Commenced EPC ▪ Bagged 1st BOT Project in Karnataka ▪ Bagged 2nd BOT project worth ▪ IPO & Listed on BSE and NSE Business worth Rs. 4,420 mn; Entry into Urban Rs.5,920mn in Telangana water Infrastructure with contract in Bangalore 2013 2013 2012 20
Slide 14: Top Management
Top Management Mr. K. Narasimha Reddy – Mr. K. Jalandhar Reddy – Founder Promoter & Managing Director Promoter & Executive Director ▪ Over 50 years of experience in the Highway sector ▪ Over 25 years of experience in the Highway and ▪ Started career in 1968 and engaged in the business of infrastruct
Slide 15: Supported by Professional Team
Supported by Professional Team ▪ A Bachelor of Engineering (BE) from MITS Gwalior (MP) with Over 35 years of total experience with ~20 years of Mr. T.L. Verma experience in Highway sector (Sr. Vice President - Projects) ▪ Working with the company since 2006 on various projects i.e. Bridges and Highw
Slide 16: Key Business Strengths
Key Business Strengths
Slide 17: 1. Project Execution Capabilities
1. Project Execution Capabilities ❑ Top management’s active involvement at all stages of Project execution ▪ Selection of Major Raw Material ▪ Selection of construction Camp location ❑ Faster Decision making to ensure project completion on schedule ❑ Received Bonus for completion of construction ahe
Slide 18: Pan India Project Execution Capability
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 Projects Rs. 1,913 mn No of Proje
Slide 19: Project Execution Highlights
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 & strengthened with flexible p
Slide 20: 2. In-house Construction Equipment
2. In-house Construction Equipment Sr. No. Machinery Quantity Sr. No. Machinery Quantity 1 Tippers & Tankers 1134 15 Crushers 28 2 Excavators 323 16 Light Soures 26 3 Generators 213 17 Trailers 25 4 Concrete Mixers And Pumps 136 18 Dozers 28 5 Compactors 133 19 Compressors 36 6 Loaders 79 20 Transfo
Slide 21: 3. In-house Execution Team
3. In-house Execution Team 5% Total Employees* Project Engineering 1,964 31% Site Supervision 38% Site Engineers Equipment Operators 8% Admin & Office Staff 18% IN-HOUSE TEAM OF QUALIFIED AND EXPERIENCED EMPLOYEES LED BY PROVEN MANAGEMENT TEAM * as on March 31, 2020 21
Slide 22: 4. Host of Marque Clients
4. Host of Marque Clients 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) (APRDC) (MoRTH) Limited (HGCL) Project (KSHIP)
Slide 23: BOT Portfolio
BOT Portfolio
Slide 24: BOT Portfolio – Annuity Projects
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 Length (KM) 60.0 53.0 Concession S
Slide 25: BOT Portfolio – Toll Projects
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 Lanes Two to Four Two Length(KM)
Slide 26: HAM Portfolio
HAM Portfolio Trichy to Chittor to Ramsanpalle to Magadi to Oddanchatram to Particulars Kallagam Mallavaram Mangloor Somwarpeth Madathukulam* KNR Srirangam Infra KNR Tirumala Infra KNR Shankarampet Projects KNR Somwarpeth Infra KNR Palani Infra SPV Name Private Limited Private Limited Private Limite
Slide 27: Details of SPA with Cube
Details of SPA with Cube^ Total Equity Cube’s Equity Share KNR’s Equity Share Consideration for KNR’s Particulars (Rs. mn) (49%) (Rs. mn) (51%) (Rs. mn) 51% stake (Rs. mn)* KNR Sriranagm Infra Pvt Ltd 471.5 490.8 736.1 (SPA Signed: 28th Jan’19) 962.3 1.50 times KNR Tirumala Infra Pvt Ltd 701.9 730.6
Slide 28: Order Book & Business Strategy
Order Book & Business Strategy
Slide 29: Order-book Highlights
Order-book Highlights Key Projects Rs. Mn Order Book Break-up Magadi to Somwarpeth Project (KSHIP HAM) 8,361 8% Ramsanpalle to Mangloor Project (HAM) 5,893 47% 53% 19% 26% Chittor to Mallavarm Project (HAM) 5,494 Trichy to Kallagam Project (HAM) 4,771 Captive (HAM Projects) State Govt. Central Govt.
Slide 30: Projects Won but not yet included in Orderbook
Projects Won but not yet included in Orderbook Rs. million 26,581 78,878 Project Cost Projects Not Included in Order Book (Rs. mn) Four Laning of Oddanchatram – Madathukulam section of NH - 209 52,297 (New NH-83) under Bharatmala Pariyojna Phase – I (Residual Project 6,400* under NHDP) in the state
Slide 31: Order-book: State-wise
Order-book: State-wise Arunachal Pradesh No of Projects 1 Balance Value Rs. 932 mn Karnataka No of Projects 6 Balance Value Rs. 12,557 mn AP & Telangana No of Projects 12 Balance Value Rs. 31,218 mn Kerala No of Projects 3 Balance Value Rs. 268 mn Tamil Nadu No of Projects 12 Balance Value Rs. 7,322
Slide 32: Business Strategy
Business Strategy Focus on Projects involving Higher degree of engineering skills 03 Focus on securing EPC Continuously explores contracts from reputed growth opportunities by Clients and forming strategic Joint Concessionaire Ventures (JVs) 02 04 Capitalise on Opportunity Execute all the projects o
Slide 33: Financial Highlights
Financial Highlights
Slide 34: Standalone Financial Highlights
Standalone Financial Highlights Financial Year 2010* 2011* 2012* 2013* 2014* 2015* 2016^ 2017^ 2018^ 2019^ 2020^ Rs. 7,125 Rs. 7,930 Rs. 7,505 Rs. 6,921 Rs. 8,348 Rs. 8,761 Rs. 9,025 Rs. 15,411 Rs. 19,317 Rs.21,373 Rs. 22,442 Turnover $118.6 $132.0 $125.0 $115.2 $139.0 $140.0 $136.1 $238.3 $296.9 $3
Slide 35: Standalone Financial Highlights
Standalone Financial Highlights Revenue & EBITDA (Margin %) EBITDA Margin (%) 15.7% 17.1% 17.8% 16.8% 15.1% 14.4% 16.9% 14.9% 19.9% 20.0% 21.7% 21,373 22,442 19,317 15,411 7,930 8,348 8,761 9,026 EBITDA 7,125 7,505 6,921 3,839 4,270 4,871 Revenue 2,296 1,121 1,356 1,338 1,164 1,258 1,261 1,529 2010
Slide 36: Standalone Net Working Capital Days
Standalone Net Working Capital Days 79 69 52 48 53 53 52 40 43 41 36 45 28 26 23 18 20 19 20 20 16 16 15 15 15 17 16 13 14 12 14 7 98 10 66 45 64 51 74 53 39 45 40 78 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Inventory Debtors Creditors Net Working Capital 36
Slide 37: Shareholding Pattern as on 31st March 2020
Shareholding Pattern as on 31st March 2020 Shareholders Holding more than 1% of the Equity % to Equity (Other than Promoters) 10.74% ICICI Prudential Mutual Fund 6.84% HDFC Mutual Fund 6.40% DSP Mutual Fund 6.17% 32.17% Franklin Templeton Mutual Fund 2.00% 55.17% L&T Mutual Fund 1.99% UTI Mutual Fun
Slide 38: Completed Projects
Completed Projects Walayar Road Project MP Road Site MP Road Site Eturunagaram Bridge over river Muzaffarpur-Barauni Road Walayar Toll plaza Godavari Project 38
Slide 39: Under Construction Projects
Under Construction Projects Salem Flyover River Bridge KP Sagar Irrigation Flyover in Madurai - Coimbatore Flyover Salem Flyover Ramanathpuram Section 39
Slide 40: Equipments & Others
Equipments & Others Concrete Paver Gantry Tippers at Irrigation Site Tippers Workers on Site Excavator 40
Slide 41: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : KNR Constructions Ltd. CIN: L74210TG1995PLC130199 Strategic Growth Advisors Pvt. Ltd. Mr. K. Venkata Ram Rao CIN: U74140MH2010PTC204285 (GM - Finance & Accounts) Mr. Jigar Kavaiya / Mr. Pratik Shah venkatram@knrcl.com +9