Gayatri Projects Limited · NSE:GAYAPROJ
Gayatri Projects — Q2 FY2020 Earnings Presentation
25 slides from Gayatri Projects's earnings presentation, Nov 23, 2019
Slide 1: Cover letter to stock exchanges
(ù Date r 23'd Novemberr 2019 G^y TRt To, To, The General Manager, The Secretary, The Department of Corporate Relations, National Stock Exchange of India Ltd, The Bombay Stock Exchange Limited, sth Floor, Exchange Plaza, 25th Floor, Phiroz Jeejeebhoy Towers, Plot No.C/1, G Block, Dalal Street, Mumba
Slide 2: Gayatri Projects Limited Earnings Presentation Q2FY20
Gayatri Projects Limited Earnings Presentation Q2FY20
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. Corporate Action to provide Liquidity Boost Slide No. 4 2. Q2FY20 Highlights & Guidance Slide No. 5 - 6 3. Q2FY20 Financial Highlights & Top Work Order Status Slide No. 7 - 10 5. Order Book Diversification Slide No. 11 6. Key Investment Highlights Slide No. 12-14 Slide No. 15 onwards 8. Ap
Slide 5: Corporate Action to provide Liquidity Boost
Corporate Action to provide Liquidity Boost Monetisation of stake in Power Asset • Monetisation of c.5.9% stake in the Sembcorp Energy “India” Ltd (“SEIL”) at an advanced stage; closure by December 2019 • Process has been started for taking the necessary shareholders approval Monetisation of Awards
Slide 6: Q2FY20 Highlights
Q2FY20 Highlights • Road EPC activities significantly impacted because of elongated monsoon affecting the progress of multiple large projects. • Heavy rains in Assam & Haryana resulted in damage to the road surface for Execution impacted due to roads which were in defect liability period and require
Slide 7: FY20: Revised Guidance
FY20: Revised Guidance FY20 Guidance (INR Mn) Order Inflow INR 50-60 billion Revenues 5%-10% Growth EBITDA Margin 15%+ PAT 5%-10% Execution delays due to excessive rainfalls have impacted the full year guidance 6
Slide 8: Q2FY20 – Financial Performance
Q2FY20 – Financial Performance Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin Key Highlights o Severe extended rains affected operations across some 16.0% 14.2% of our largest projects resulting significant revenue 6,977 attrition. 6,113 o The company, booked a large claim awarded to it during 981
Slide 9: Q2FY20 Snapshot
Q2FY20 Snapshot INR Mn Q2FY20 Q2FY19 YoY(%) H1FY20 H1FY19 YoY(%) Revenue 6,977 6,113 14% 16,818 14,341 17% Expenses 5,983 5,133 17% 14,296 11,943 20% EBITDA 994 981 1% 2,522 2,398 5% EBITDA Margin 14.2% 16.0% 15.0% 16.7% Depreciation 195 164 19% 387 325 19% Finance Cost 630 670 -6% 1,273 1,297 -2% O
Slide 10: 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 01.10.2019 (INR Cr) Site Booking Start Project End of Q (INR Cr) & Year Purvanchal Expressway Package 1 Eastern UP 1,483 1,307 Yes Q3 19 Q3 22 Purvanchal Exp
Slide 11: 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 01.10.2019 (INR Cr) Site Booking Start Project End of Q (INR Cr) & Year Nagpur - Mumbai Expressway Shirdi 1,312 1,241 Yes Q1 20 Q2 22 6 lane tunnel at Khamba
Slide 12: Growing Order Book : Current Book to Bill of 4x
Growing Order Book : Current Book to Bill of 4x Growing and De-Risked Order Book (INR Bn) Geographical Diversification GPL’s Growth in EPC order book over the last 5 years Gujarat Jharkhand Others 2% 3% 3% 163 149 129 132 Karnataka Uttar Pradesh 4% 23% 92 Bihar 48 6% FY15 FY16 FY17 FY18 FY19 H1FY20
Slide 13: 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 14: 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 15,466 1.5 1.2 1.1 FY15 FY16 FY17 FY18 FY19 H1FY20 FY15 FY16 FY17 FY18 FY19 H1FY20 Debt Maturity Profile (INR MN) Working Capital Days 2,316 2,090 2,1
Slide 15: 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 seg
Slide 16: Appendix
& GAYATRI Gayatri Projects Limited Appendix Annual Report 2018-2019
Slide 17: 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 18: 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 19: 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 20: 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 21: Balance Sheet
Balance Sheet All figures in INR Million ASSETS (INR Mn) H1FY20 FY19 FY18 EQUITY AND LIABILITIES (INR Mn) H1FY20 FY19 FY18 EQUITY NON-CURRENT ASSETS (a) Equity Share capital 374 374 374 (a) Property Plant & Equipment 3,848 3,763 3,350 (b) Other Equity 13,521 12,922 10,856 (b) Capital Work in Progres
Slide 22: 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 J Brij Mohan Reddy Executive Vice Chairman, Over 49 years of experience i
Slide 23: 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 24: 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 25: 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 24