Slide 1: Cover letter to stock exchanges on revised Q2 FY19 presentation
19th November, 2o18 &r 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 Pliza, 25'n Floor, Phiroz Jeejeebhoy Towers, Plot No.C/1, G Block, Dalal Street, Mumbai - 400
Slide 2: Gayatri Projects Limited Earnings Presentation Q2 FY19
Gayatri Projects Limited Earnings Presentation Q2 FY19
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. Gayatri Projects – An Introduction Slide No. 4 2. Q2FY19 Highlights Slide No. 5 - 9 3. Order Book Diversification Slide No. 10 4. Top Work Orders – Status update Slide No. 11 - 12 5. Medium Term Strategic Priorities and Guidance Slide No. 13 6. Key Investment Highlights Slide No. 14 7. App
Slide 5: GPL: Among India's Leading EPC Companies
GPL: Among India’s Leading 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 segments o Pan India
Slide 6: Maintaining Strong Growth Momentum
Maintaining Strong Growth Momentum GPL’s H1FY19 Achievement Growing and De-Risked Order Book GPL’s Growth in EPC order book over the last 5 years New Order Wins 170 Achieved full year guidance 129 132 129 Year to Date : INR 59 bn 92 48 H1 FY19 Revenue: 33% Y-O-Y Growth INR 14bn FY15 FY16 FY17 FY18 Q
Slide 7: Q2FY19 – Maintained Strong Trajectory
Q2FY19 – Maintained Strong Trajectory Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin Q2FY19 Highlights ▪ Revenue growth of 44% Y-o-Y led by 16% strong order inflows and superior 981 project execution 6,113 ▪ EBITDA Margin in line with guidance. 17.6% Y-o-Y drop in EBITDA margin due to 4,232 747 si
Slide 8: Significant Reduction In Net Debt Despite Strong Revenue Growth
Significant Reduction In Net Debt Despite Strong Revenue Growth Net Debt/Equity (x) Net Debt 18,612 2.51 2.38 2.06 17,399 17,016 1.52 1.35 16,337 16,124 FY15 FY16 FY17 FY18 H1FY19 FY15 FY16 FY17 FY18 H1FY19 Debt Maturity Profile (INR MN) Working Capital Days* 2,772 129 114 1,820 1,715 1,723 87 72 66
Slide 9: Q2FY19 – Strong Financial Performance
Q2FY19 – Strong Financial Performance INR Mn Q2FY19 Q2FY18 YoY Revenue 6,113 4,232 44% Expenses 5,133 3,485 EBITDA 981 747 31% EBITDA Margin 16.0% 17.6% Depreciation 164 135 22% Finance Cost 670 541 24% Other Income 12 9 24% PBT 158 81 96% PBT Margin 2.6% 1.9% Tax Expense -45 -156 -71% PAT 203 237 -
Slide 10: H1FY19 – Strong Financial Performance
H1FY19 – Strong Financial Performance INR Mn H1FY19 H1FY18 YoY FY18 Revenue 14,341 10,752 33% 29,123 Expenses 11,943 9,035 24,446 EBITDA 2,398 1,717 40% 4,677 EBITDA Margin 16.7% 16.0% 16.1% Depreciation 325 262 24% 547 Finance Cost 1,297 1,065 22% 2,394 Other Income 15 87 -83% 89 PBT 792 477 66% 1,
Slide 11: Order Book: Segment wise and Geographic wise
Order Book : Segment wise and Geographic wise Andhra Pradesh, 12% RAILWAY, 2% West Bengal, 1% WATER GRID, Bihar, 4% MINING, 3% 1% LAND DEVELOPMENT,… Uttar Pradesh, Gujarat, 3% 26% Jammu & Kashmir, 8% Jharkhand, 2% Karnataka, 4% Madhya Pradesh, 0% Telangana, 10% Maharashtra, 11% IRRIGATION, ROAD, 69%
Slide 12: Top Work Orders – Status Update
Top Work Orders – Status Update All amounts in INR Cr GPL GPL Balance Package Location Contract work as on Mobilised on Site Revenue Booking Start Completion Date Value 01.10.2018 Purvanchal Expressway Package 1 Eastern UP 1,483 1,483 Under Process Q4 19 Q3 22 Purvanchal Expressway Package 2 Eastern
Slide 13: Top Work Orders – Status Update
Top Work Orders – Status Update All amounts in INR Cr GPL GPL Balance Package Location Contract work as on Mobilised on Site Revenue Booking Start Completion Date Value 01.10.2018 Hyderabad Elevated Corridor Hyderabad 425 425 Yes Q4 19 Q2 21 Rajamunda - Barkote Barkote, Orissa 394 394 Under Process
Slide 14: Medium Term Strategic Priorities and Guidance: FY19-FY21
Medium Term Strategic Priorities and Guidance: FY19-FY21 Strategic Priorities Strong Order Inflows… o Avg. Annual New Order Intake of INR 60 bn+ o Book to Bill to be maintained in excess of 3.5x Strengthen …Translating into Higher Growth… Maximise Asset Light Free Cash Medium Term Growth Guidance (F
Slide 15: 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 16: Appendix
Noy) Gayatri Projects GAYATRI Appendix Efficiency. ANNO BOTT AB Execution. Excellence.
Slide 17: Robust NHAI Bid Pipeline with Majority EPC Orders
Robust NHAI Bid Pipeline with Majority EPC Orders Significant Traction in NHAI Ordering Awards Coming in GPL’s Sectoral and Geographical Strongholds Significant NHAI Bid Pipeline of INR 380 Bn INR 864 Bn Recent Project Awards Highway Projects HAM, 344 Awarded in H1FY19 Real Thermal Others Mahara Pow
Slide 18: 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 19: 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 20: Technology-Driven Execution
Technology-Driven Execution o Gayatri aims to be a Digital Pioneer in the construction industry o Leveraging cutting-edge technologies like IoT (Internet-of-Things), cloud-computing etc. o Real-time tracking and reconciliation of project costs o Optimized utilization of plants, machinery and equipme
Slide 21: Digital Project Management System
Digital Project Management System Weighbridges Plants Crushers Dump Trucks Heavy Machinery Material Tracking Machinery Tracking Project Reporting Web / Mobile Apps IoT Plant Unit IoT Vehicle Unit Real-Time Reconciliation of Costs vs. Work-Done 20
Slide 22: Digitization Roadmap
Digitization Roadmap Scale of Existing Pilot Operations: National 3 Highway 17 341,559 65,955 250 482,472 2,639,302 Projects 35,413 200 Concrete Cubic yards of Material Heavy-machines Machine hours Miles travelled Work reports Daily Project users concrete produced transactions tracked $550 200 submi
Slide 23: 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 37 bn Segment advantage to expand order bo
Slide 24: Balance Sheet
Balance Sheet All figures in INR Million ASSETS (INR Mn) H1 FY19 March FY18 March FY17 EQUITY AND LIABILITIES (INR Mn) H1 FY19 March FY18 March FY17 EQUITY NON-CURRENT ASSETS (a) Equity Share capital 374 374 355 (a) Property Plant & Equipment 3,260 3,350 3,093 (b) Other Equity 11,565 10,856 7,056 (b
Slide 25: P&L
P&L INR Mn H1 FY19 FY2018 FY2017 Change (%) Revenue 14,341 29,123 21,154 38% Expense 11,943 27,387 20,365 34% EBITDA 2,398 4,677 3,234 45% EBITDA Margin % 17% 16% 15% 7% Interest 1,297 2,394 2,014 19% Depreciation 325 547 432 27% Other Income 15 89 306 - PBT 792 1,825 1,095 67% Tax 85 (55) 237 - OCI
Slide 26: Board of Directors
Board of Directors Promoter and Non-Executive Chairperson, over 25 years of experience in the T. Indira Subbarami 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 ex
Slide 27: 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 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: 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 28