H.g. Infra Engineering Ltd. · NSE:HGINFRA
H.g. Infra Engineering — Investor Presentation (March 2018)
32 slides from H.g. Infra Engineering's investor presentation, March 2018
Slide 1: H.G. Infra Engineering Ltd
Investor Presentation, March 2018 H.G. Infra Engineering Ltd We make people move
Slide 2: Message from the Chairman & Managing Director
“Thank you for an encouraging response to our public issue and embarking on our journey with us. We respect and are grateful for investors who have imposed their faith in us and have supported us with their precious capital. We are focused on long-term success of our company based on clear business
Slide 3: Outline
Outline 01 About the Company 02 Key Strengths and Drivers 03 Growth Strategy 04 Financial Highlights
Slide 4: About the Company
| a r - 3 eh ne — = 2 o4 01 3» About the Company
Slide 5: Company Overview
Company Overview Experienced roads and highways construction company 15 27 1,000+ Years of track record in projects under execution Number of plant & project execution (21 roads & highways) machinery 6 2,400+ Rs 48,702 mn States where projects Qualified and Order Book (Rs 37,078mn unexecuted as on N
Slide 6: Track Record
Track Record Executed projects across geographies and clients Presence across 6 states Clients 1 1 1 9 1 16 3 Accreditations and awards Quality Management Environment Management Health & Safety 7 1 No. of completed projects u Letter of appreciation in 2012 from L&T for being the most quality No. of
Slide 7: Milestones
Milestones Evolved from sub-contractor to main contractor with higher value contracts 2003-08 2010-14 2015-16 2017-18 Four laning of 49 mm on 7 construction projects in Incorporated in 2003 Construction project of four the Jaipur-Tonk-Deoli Maharashtra by MoRTH – section on NH-12 – laning of NH-65,
Slide 8: Completed Projects
Completed Projects Completed notable projects of different sizes & complexities Project 4 laning of Construction 2nd Renewal Coat Construction of Widening & Warora- Kuberpur to on the Pavement of Tonk-Deoli Jaipur Strengthening of Chandrapur- Fatehabad- Agra 6 lane Jaipur- Section NH96 Ballarpur Inn
Slide 9: Joint Ventures
Joint Ventures Between 2013-17, ongoing/completed 5 roads and highways projects through JVs M.G Rameshwar JV partner Tata Projects Ranjit Buildcon Colossal Contractors Prasad Sharma Limited Limited Construction Pvt Limited Contractor Changlang district Bari-Baseri-Weir- Project Babatpur to Chittorga
Slide 10: Management Team
Management Team Experienced and qualified senior management and operational team Mr. Harendra Singh Mr. Rajeev Mishra Chairman and Managing Director Chief Financial Officer • 23 years of experience in the construction industry • Over 10 years of experience in banking and real estate industry • Holds
Slide 11: Board of Directors
Board of Directors Management supported by independent Board Mr. Vijendra Singh Whole-time Director • 23 years of experience in the construction industry • Responsible for the overall functioning of the Company Mr. Girish Pal Singh Non-Executive Director • 23 years of experience in the construction
Slide 12: Key Strengths and Drivers
02 »> Key Strengths and Drivers
Slide 13: Industry Opportunity, Differentiated Business Model, Robust Order Book
INDUSTRY OPPORTUNITY Increasing investments Policy support and reforms Insufficient network DIFFERENTIATED BUSINESS MODEL TO DRIVE Evaluation and management skills GROWTH WITH Equipment bank Project team SUPERIOR MARGINS ROBUST ORDER BOOK 4x FY17 revenues Provides revenue visibility
Slide 14: Industry Opportunity
Industry Opportunity Increasing investment in the infrastructure sector with focus on roads & highways Government’s focus on improving domestic infrastructure leading to increasing investments in the sector (Rs tn) 30.93 u Cumulative investments in infrastructure projects from FY12-17 27.30 is esti
Slide 15: Industry Opportunity
Industry Opportunity Several factors driving the growth in infrastructure investments NH constitutes a mere 1.7% of the road network þ Policy changes fueling growth – land availability, fast- but carry about 40% of the total road traffic track clearances, revival of stalled projects, etc. Road Netw
Slide 16: Differentiated Business Model
Differentiated Business Model Presence across the project lifecycle for better efficiency 1 2 3 Efficient project Technical and skilled Large in-house evaluation and team for project equipment bank management skills management Differentiated business model with focus on efficient execution, complete
Slide 17: Project Evaluation and Management
1 Project Evaluation and Management Presence across the project lifecycle for better efficiency and cost optimization u Focus on selection of projects with favorable execution conditions Preliminary project evaluation u Projects with our hurdle rate of profitability u In-house team for technical
Slide 18: Equipment Bank
2 Equipment Bank Invested ~Rs 3,000 mn in plant and machinery in last 4 years u Owned equipments ensures control over execution u Ensures availability and quick mobilization u Eliminate delays and cost over-runs due to untimely break- Crushers Compactors Graders downs or non-availability Gross Bl
Slide 19: Project Team
3 Project Team Total 2,447 employees; net addition of ~1,000 in employees in 8mFY18 No. of employees Large number of skilled employees 2,447 4x 1,497 1,070 Unskilled, 690 317 Skilled, Mar'15 Mar'16 Mar'17 Nov'17 2,130 Employee Expenses (Rs mn) 6.1% 6.0% u 2,447 employees as of November 30, 2017, wh
Slide 20: Order Book
Order Book Robust order book of Rs 48,702 mn (~5x FY17 Revenues) Robust growth in order book (Rs mn) Order book breakup (Rs 48,702 mn) 4.5x Private 48,702 clients, 23% 40,191 11,624 L1 orders post Nov Government clients, 76% 37,078 AP, 1.1% Haryana, 14,463 12.0% 10,677 UP, 0.9% Rajasthan, Uttarakhan
Slide 21: Order Book: Top Orders under Execution
Order Book Order book provides revenue visibility Top 5 orders under execution Value Project Nature of work Appointed Date (Rs mn) Gulabpura- Chittorgarh Section-2 Six Laning Nov 2017 6,376 Chittorgarh- Udaipur Section of NH-76 Six Laning Jul 2017 4,834 Section-1 Rehabilitation & Up-gradation from T
Slide 22: Growth Strategy
03 Growth Strategy
Slide 23: Strategy
Strategy Continue focus on core EPC projects with superior margins § Focus on road and highways EPC § Reduce business concentration § Invest in modern construction in limited geography equipment § De-risk by expanding the § Attract and retain talented presence in different states employees Busi
Slide 24: Financial Highlights
| a r - 3 eh a ——— = = o4 04 9 Financial Highlights
Slide 25: Revenue, EBITDA and PAT
Revenue, EBITDA and PAT Robust topline and profitability growth – 30%+ 4 year CAGR… Rs mn Revenue from Operations EBITDA & EBITDA Margin PAT & PAT Margin 11.4% 13.1% 11.0% 12.4% 14.7% 2.5% 1.4% 5.0% 5.5% 5.4% 533 1,198 9,703 7,124 354 781 799 5,447 293 4,447 506 3,352 439 109 46 FY14 FY15 FY16 FY17
Slide 26: Balance Sheet
Balance Sheet ...and disciplined working capital management with focus on cash flow generation.. Working Capital Cycle 57 55 39 33 27 30 24 39 31 31 34 43 20 39 41 25 FY14 FY15 FY16 FY17 Debtor Days Inventory Days Creditor Days Net WC Days Cash Flows from Operations (Rs mn) 544 372 343 277 Disciplin
Slide 27: Return Ratios
Return Ratios … leading to superior return ratios Debt/EBITDA Return on Capital Employed Return on Net Worth 45% 30% 29% 39% 39% 2.0 36% 1.6 22% 1.7 1.7 27% 1.4 14% 6% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Standalone numbers Debt is calculated as Long Term + Shor
Slide 28: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Rs mn FY13 FY14 FY15 FY16 FY17 6M '17 Revenue from operations 3,236.3 4,446.8 3,352.2 7,124.3 9,702.9 5,447.8 Cost of material consumed 1,577.0 2,407.2 1,188.8 2,793.6 4,066.2 2,451.1 Contract and site expenses 979.4 1,288.7 1,479.3 3,089.3 3,916.2 1,807.7 Employ
Slide 29: Standalone Balance Sheet
Standalone Balance Sheet Rs mn Mar’13 Mar’14 Mar’15 Mar’16 Mar’17 Sep ’17 Share Capital 152.5 152.5 152.5 180.2 180.2 540.6 Reserves 536.5 645.5 691.8 1,045.3 1,578.7 1,511.1 Shareholders' Funds 688.9 797.9 844.3 1,225.5 1,758.9 2,051.6 Secured Loans 91.8 43.7 155.0 284.5 634.8 1,130.1 Deferred Tax
Slide 30: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Rs mn FY14 FY15 FY16 FY17 6M '17 Revenue from operations 4,710.5 3,650.8 7,408.8 10,548.9 5,673.4 Cost of material consumed 2,347.5 1,196.7 2,830.9 4,088.7 2,464.5 Contract and site expenses 1,519.7 1,768.3 3,335.1 4,735.6 2,020.1 Employee expenses 213.0 207.3
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Rs mn Mar’14 Mar’15 Mar’16 Mar’17 Sep ’17 Share Capital 152.5 152.5 180.2 180.2 540.6 Reserves 645.5 691.8 1045.3 1578.7 1511.1 Shareholders' Funds 798.0 844.3 1225.5 1758.9 2051.7 Long Term Borrowings 43.7 155.0 284.5 634.8 1130.1 Deferred Tax Liabilities 12.8 N.A N.A N.A
Slide 32: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Company HG Infra Engineering Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe f
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