Gayatri Projects Limited · NSE:GAYAPROJ
Gayatri Projects — Q2 FY2021 Earnings Presentation
28 slides from Gayatri Projects's earnings presentation, Nov 7, 2020
Slide 1: Submission of Presentation to Analysts/Investors
~ GAYATRI November 7, 2020 To To The Secretary, Listing Department The Manager, Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, G Block, Bandra -Kurla Complex, Bandra (E), Mumbai - 400 001 Mumba
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: Q2FY21 Results Update
Q2FY21 Results Update NOY, GAYATRI
Slide 5: Operational and Financial Snapshot: Q2FY21
Operational and Financial Snapshot: Q2FY21 Debt Servicing • Pursuant to the Debt Resolution Plan proposed by the company to its lender's consortium, the company is in advanced stages of monetizing arbitration claim awarded to it by utilizing Arbitration Bank Guarantee facility from its lenders. The
Slide 6: Q2FY21 (YoY) Financial Performance
Q2FY21 (YoY)– Financial Performance Revenue (INR Mn) EBITDA (INR Mn) Key Highlights 7,982 6,977 • Revenue – Revenue up, strong 1,060 execution pick up post lockdown 994 across most of the projects; • EBITDA margin impacted due to suboptimal level of execution on account of shortage of labour and Q2F
Slide 7: Q2FY21 Income Statement - Snapshot
Q2FY21 Income Statement - Snapshot INR Mn Q2FY21 Q2FY20 YoY(%) H1FY21 H1FY20 YoY(%) Revenue 7,982 6,977 14% 14,662 16,818 -13% Expenses 6,923 5,983 16% 12,741 14,297 -11% EBITDA 1,060 994 7% 1,920 2,521 -24% EBITDA Margin 13.3% 14.2% 13.1% 15.0% Depreciation 221 195 13% 438 387 13% Finance Cost 846
Slide 8: Top Work Orders – Status Update – Q2FY21
Top Work Orders – Status Update – Q2FY21 Contract Balance work as on Mobilized on Revenue Expected Completion of Project Name Location Value (INR Cr) 01.10.2020 (INR Cr) Site Booking Start Project Purvanchal Expressway Package 1 Eastern UP 1,483 787 Yes Q3 19 Q3 22 Purvanchal Expressway Package 2 Ea
Slide 9: Top Work Orders – Status Update – Q2FY21
Top Work Orders – Status Update – Q2FY21 Contract Value Balance work as on Mobilized Revenue Booking Expected Completion of Project Name Location (INR Cr) 01.10.2020 (INR Cr) on Site Start Project Nagpur - Mumbai Expressway Shiridi, MH 1,312 1037 Yes Q1 20 Q1 22 6 Lane Tunnel at Khambataki Ghat Sata
Slide 10: Notes to Account - Snapshot
Notes to Account - Snapshot Note 7 8 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 11: Notes to Account - Snapshot
Notes to Account - Snapshot Note 9 10 Description Contract Advances (loan): Exposure to Sai Maatarini Tollways Limited (SMTL) – In the ordinary course of (Subsidiary of associate company – GHL). The company has business, the company had given to receive an amount of INR 245cr towards EPC cost from c
Slide 12: Notes to Account - Snapshot
Notes to Account - Snapshot Note 11 12 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 13: Notes to Account - Snapshot
Notes to Account - Snapshot Note 13 Description Gayatri Highway Loan Guarantee - Exposure including interest – 84 cr GPL & GHL jointly & severally agreed to repay the loan availed by GHL amounting to INR 84 cr. And additional interest of INR 8.65 cr towards loan availed by GHL, along with interest i
Slide 14: Building an Asset Light Business Model
Building an Asset Light Business Model Growing Revenue Base (INR MN) Working Capital Days 105 92 78 78 64 62 FY16 FY17 FY18 FY19# FY20 H1FY21* Receivable Days Inventory Days Payable Days Net Working Capital * Due to lockdown, work at major sites came to standstill during Q1FY20 and the revenue durin
Slide 15: Strong EPC Order Book; High Revenue Visibility
Strong EPC Order Book; High Revenue Visibility Geographical Diversification Segmental Diversification 65% Others Hyderabad Jharkhand Karnataka 4% 3% 2% Andhra Pradesh 4% 16% 29% Varanasi 6% 4% 1% Bihar 6% ROAD IRRIGATION MINING INDUSTRIAL Jammu Odisha 8% 15% De-Risked EPC Order Book (INR Bn) Telanga
Slide 16: 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 6,896 7,648 1,111 FY21 FY22 FY23 FY24 FY16 FY17 FY18 FY19 FY20 H1FY21 Net Debt/Equity (x) EBITDA to CFO Conversion 2.38 2.51 97% 2.06 2.06# 83% 1.52 1.65* 65% 1.
Slide 17: 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 18: FY21: Guidance
FY21: Guidance FY21 Guidance (INR Mn) Order Inflow INR 30 - 40 billion Revenues 0% - 5% Growth EBITDA Margin 14% - 15% 17
Slide 19: 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 20: Appendix
Appendix 19
Slide 21: Awards & Claims
Awards & Claims Different arbitration tribunals/courts have awarded GPL, a total of INR 6.8 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 5 Bn+ in different arbitral tribunals/courts. 20
Slide 22: 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 23: 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 24: Balance Sheet
Balance Sheet All figures in INR Million ASSETS (INR Mn) H1FY21 FY20 FY19 FY18 EQUITY AND LIABILITIES (INR Mn) H1FY21 FY20 FY19 EQUITY NON-CURRENT ASSETS (a) Equity Share capital 374 374 374 (a) Property Plant & Equipment 3,643 3,942 3,763 3,350 (b) Other Equity 8,965 9,049 12,922 (b) Capital Work i
Slide 25: Board of Directors
Board of Directors T. Indira Reddy Promoter and Non-Executive Chairperson, over 25 years of experience in the 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 26: 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 27: 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 28: 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