Rites Ltd. · NSE:RITES
Rites — Investor Presentation (September 2018)
33 slides from Rites's investor presentation, Sep 4, 2018
Slide 1: Exchange cover letter for investor presentation
C) eer NEES retires al AIIES RITES LIMITED THE INFRASTRUCTURE PEOPLE : . (Schedule ‘A' Enterprise of Govt. of India ) Date: September 4, 2018 To: To: Listing Department, Corporate Relationship Department, National Stock Exchange of India Limited, BSE Limited, Rotunda Building, ‘Exchange Plaza’, C-1,
Slide 2: RITES Limited Investor Presentation
RITES Limited Investor Presentation Business Profile September 2018 1
Slide 3: Content
Content 1 Company Overview 3 2 Competitive Strengths 9 3 Financial Performance 17 4 Industry Analysis 25 2
Slide 4: Company Overview
Company Overview 3
Slide 5: Company Overview
Company Overview A Miniratna (Category-I) Schedule ‘A’ Public Sector Enterprise A leading player in the transport consultancy and engineering sector in India Export arm of Indian Railways for Locomotive, Rolling Stock, equipment and spares Consistently dividend paying company during the last five ye
Slide 6: RITES Journey
RITES Journey Listing of Equity Share with Stock Exchanges 2018- Secured turnkey project from 19 MoR for doubling of Railway Line 2015- 16 2012- Formed a JVC with SAIL for 13 manufacturing of wagons 2009- 10 2007- Incorporation of Railway Energy 08 Management Company Ltd. Granted Mini Ratna category
Slide 7: Key Services & Product Offerings
Key Services & Product Offerings Techno Economic Project Management Construction viability- Feasibility Consultancy Supervision & DPR Consultancy Services Quality Assurance & Material System Design Engineering Inspection Services Management Export of Locomotive, Rolling stock and spares Locomotive L
Slide 8: Key Subsidiary and JV
Key Subsidiary and JV • Railway Energy Management Company Ltd. was • SAIL-RITES Bengal Wagon Industry Pvt. Ltd. incorporated on August 16, 2013 to carry out was incorporated on December 13, 2010 business relating to: • Involved in the business of – augmenting capacity in all activities relating ₋ Tr
Slide 9: Recent Accolades
Recent Accolades Dun & Bradstreet PSU Award 2017 Industrial Development & Technical Consultancy Services Export Awards from EEPC India, Northern Region Excellence in Exports in Engineering Services, large enterprises EEPC Gold Trophy Best export performance for the year 2015-16 Rajbhasha Gaurav P
Slide 10: Competitive Strengths
Competitive Strengths 9
Slide 11: Strengths
Strengths Technical expertise and business divisions with specialized domain knowledge Preferred consultancy Strong and consistent financial organization of the Government performance supported by of India including the IR robust internal control and risk management system Comprehensive range of Exp
Slide 12: Comprehensive Range of Services
Comprehensive Range of Services Conducting techno-economic feasibility and Preparing detailed project report Ports Design engineering activities Urban Procurement assistance Transport Project management activities Airports Railways Inland Quality assurance waterways Training and construc
Slide 13: Business Divisions
Business Divisions Rail Infrastructure Division Technical Urban Infrastructure Division Railway transportation and economics, Expertise & Specialized Urban and regional transport infrastructure Electrical engineering, signal and including but not limited to feasibility telecommunications domai
Slide 14: Functional Directors
Functional Directors Mr. Rajeev Mehrotra Chairman & Managing Director Experience – 34 years Mr. Ajay Kumar Gaur Director- Finance Experience – 33 years Mr. Mukesh Rathore Director - Technical Experience – 36 years *Mr. Arbind Kumar, Director (Projects) has superannuated on 31.08.2018 13
Slide 15: Govt. Nominee & Independent Directors
Govt. Nominee & Independent Directors Mr. Bhupendra Kumar Agarwal Mr. A.P. Dwivedi Govt. Nominee Director Govt. Nominee Director Mr. Satish Sareen Dr. Pramod Kumar Anand Independent Director Independent Director Dr. Vidya Rajiv Yeravdekar Mr. Anil Kumar Goel Independent Director Independent Director
Slide 16: Employee Productivity
Employee Productivity ₹ in Crore REVENUE PER EMPLOYEE (STANDALONE) FY18 Approx 1,400 Revenue per 0.47 0.49 regular skilled employee: 0.41 engineers/ ₹ 49 lakh 0.36 professionals Lorem ipsum This is dummy text it is not here to be read FY15 FY16 FY17 FY18 Status Employees as on 30.06.2018 Experience
Slide 17: Growth Strategies
Growth Strategies Leverage our experience and continue to build on our core competencies in transport infrastructure sector Strengthen our EPC / Turnkey business Expand our international operations Expand our operations in power procurement and renewable energy (REMCL) 16
Slide 18: Financial Performance Summary
Financial Performance Summary 17
Slide 19: Strong Revenue Growth (Consolidated)
Strong Revenue Growth(Consolidated) ₹ in Crore OPERATIONAL REVENUE SEGMENTAL REVENUE 17(1.1%) 1503 147 (9.8%) 1351 232 (15.4%) 1102 1017 92(6.1%) 1015 (67.6%) Consultancy services Leasing services Export sales Turnkey construction projects FY15 FY16 FY17 FY18 sale of power generation 18
Slide 20: Strong Earnings (Consolidated)
Strong Earnings (Consolidated) ₹ in Crore EBITDA & EBITDA MARGINS(%) PAT & PAT MARGINS (%) 572 363 557 555 340 337 480 303 41.0% 43.0% 35.5% 34.3% 25.9% 26.3% 21.6% 21.8% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Amount indicated for FY18 is after absorbing the impact of full year pay revision 19
Slide 21: Value Generation (Consolidated)
Value Generation (Consolidated) ₹ in Crore NETWORTH & ROE (%) EPS (IN ₹) 20.0% 2400 17.4 19.0% 2206 18.6% 17.0 18.0% 2200 18.0% 2038 16.4 17.0% 16.1% 15.8% 2000 16.0% 1883 15.0% 1800 1629 14.0% 15.2 1600 13.0% 12.0% 1400 11.0% 10.0% 1200 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Cash in hand as on 31.
Slide 22: Strong Order Book
Strong Order Book ₹ in Crore Consultancy `2384 Cr 31.0% 43.2% 22.9% Exports `1264 Cr 2.9% Consultancy Leasing Leasing `158 Cr Exports Turnkey Projects 32.9% Turnkey `1711 Cr 67.1% Total Order book as on 30.07.18 `5517 Crore Govt. & PSU Other *order book also includes US Dollar denominated projects a
Slide 23: Few Major Domestic Projects
Few Major Domestic Projects Consultancy General engineering and design consultancy services for the Nagpur Metro Project, the Pune Metro Project and the Ahmedabad Metro Project Safety audit for sections of National Highways of aggregate length approximating 1,238 kilometres in eight states in Indi
Slide 24: Few Major Foreign Projects
Few Major Foreign Projects Consultancy Construction supervision consultancy for the Metro Express Project and preparation of detailed project report for Trident Port in Mauritius Conduct of design consultancy services for construction of cargo complex, parallel taxi way and modification of old ter
Slide 25: Dividend Payout
Dividend Payout ₹ in Crore 70 91 32 23 78 45 55 30 40 FY 15 FY 16 FY 17 FY 18 FY 19 (Proposed) Final Dividend Interim Dividend • ₹ 40 crore (₹ 2 per share) of Final dividend for the FY 2017-18 has been recommended which will be paid in FY 2018-19 • For distribution of Dividend Company follow the “Gu
Slide 26: Industry Analysis
Industry Analysis 25
Slide 27: India's Growing Infrastructure
India’s Growing Infrastructure One of the Fastest Rs. 5.97 lakh crore for infrastructure in budget growing 2018-19 major Transport infrastructure sector is expected to economy grow average 5.9% annually through 2021 To create a world class infrastructure with several initiatives like Bharatmala proj
Slide 28: Indian Railways Sector
Indian Railways Sector Capital Investments budgeted in Indian Railways (Rs. Bn) Double infrastructure investment in Railways from Rs. 3.8 lakh crore in 2013-17 to Rs. 8 lakh 1480 crore in 2018-22E 1170 1310 1000 Modernization of its signaling system with an 654 estimated investment of Rs 9,000 crore
Slide 29: Road and Highways Sector
Road and Highways Sector •Increase in Budgetary spending in Q1 National Highway Development Road Infrastructure by 58.5% program (NHDP) 3% Total length: •GoI to invest INR 7,00,000 crore for •Upgrade, Rehabilitate and widen Major 2% 5.6 million Kms road projects in next 5 years highway •Rs. 1.21 lak
Slide 30: Urban Transport Sector
Urban Transport Sector Smart Cities The present government has ambitious plans to develop 100 smart cities in the next 5 years Currently, in India, 10 cities have metro system Out of the 731 smart city projects worth INR463,660mn with a total length of 425 km sanctioned so far, implementation ha
Slide 31: Airports and Ports
Airports and Ports Outlook for Investments in Airport Infrastructure Outlook for Investments in Port Infrastructure India is set to become 3rd largest aviation market by 2020. In Q1 FY19 traffic increased 3.91% year on year to 174.02 million tonnes India’s aviation industry is expected to wi
Slide 32: Disclaimer
Disclaimer This presentation report is for distribution purpose only under such circumstances as may be permitted by applicable law. This presentation is for information purposes only without regard to specific objectives, financial situations or needs of any particular persons and does not constitu
Slide 33: Thank You
Thank You